WWF-UK: Report confirms WWF-UK criticism of Russian oil project
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Report confirms WWF-UK criticism of Russian oil project
Thursday 8 November 2007
WWF-UK announced today that a new report into the UK Government-supported Sakhalin oil project confirms the enormous environmental degradation caused by the building of the platform in Russia.
The report by AEA Technology examined the oil project's environmental and social impacts, was commissioned by Sakhalin Energy Investment Company, (SEIC) and released under their control last month.
"The AEA Technology report is nearly 300 pages of reasons not to fund the Sakhalin II project. It's time the UK Government's Export Credits Guarantee Department (ECGD) broke new ground and actually turned down a project on environmental grounds, rather than ignoring the evidence staring it in the face," said James Leaton, WWF's Oil and Gas Policy advisor.
The report highlights serious impacts upon critically endangered species such as the Western Gray Whale, Steller's Sea Eagles and Taimen (a type of salmon), all three of which appear on the IUCN red list
"Endangered species and indigenous groups have seriously suffered. The UK-Government's Export Credits Guarantee Department (ECGD) has failed to bring the Sakhalin project up to scratch," he said.
WWF's other key concerns following the AEA Technology report are :
WWF-UK believes that the support of government agencies such as the ECGD to Sakhalin II would undermine the standards the UK Government claims to uphold.
We are urging other banks to avoid the ongoing high risks built into this project.
The Sakhalin project is to be underwritten by the UK government for up to US$1 billion.
"The AEA Technology report is nearly 300 pages of reasons not to fund the Sakhalin II project. It's time the UK Government's Export Credits Guarantee Department (ECGD) broke new ground and actually turned down a project on environmental grounds, rather than ignoring the evidence staring it in the face," said James Leaton, WWF's Oil and Gas Policy advisor.
The report highlights serious impacts upon critically endangered species such as the Western Gray Whale, Steller's Sea Eagles and Taimen (a type of salmon), all three of which appear on the IUCN red list
"Endangered species and indigenous groups have seriously suffered. The UK-Government's Export Credits Guarantee Department (ECGD) has failed to bring the Sakhalin project up to scratch," he said.
WWF's other key concerns following the AEA Technology report are :
- The company has failed to produce adequate plans for an oil spill response despite being built in an area of high seismic activity, winter sea-ice and frequent storms.
- Mitigation measures have been altered to fit SEIC's agenda.
- Assessments and mitigation efforts are too late - the company is only now proposing a survey of Taimen.
- A plan for considering local and indigenous communities whose livelihoods were affected was completed after three years of construction, leaving the most vulnerable groups without compensation.
- Half of the 169 sensitive rivers crossed by the pipeline have been exposed to the potential of significantly higher impact levels than would have been the case had these crossings been undertaken in full compliance with the Action Plan agreed with potential lenders and international best practice.
WWF-UK believes that the support of government agencies such as the ECGD to Sakhalin II would undermine the standards the UK Government claims to uphold.
We are urging other banks to avoid the ongoing high risks built into this project.
The Sakhalin project is to be underwritten by the UK government for up to US$1 billion.
"Endangered species and indigenous groups have seriously suffered."
James Leaton, Oil and Gas Policy advisor, WWF
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