Indigenous Peoples of the North, Siberia and Far East

1. Indigenous Peoples of the North, Siberia and Far East:Russian case of Free Prior Informed ConsentWashington 07 October 2010 Rodion Sulyandzigaritc@mail.ru

2. Indigenous Peoples of the North, Siberia and Far East

3. INDIGENOUS PEOPLES OF THE NORTH, SIBERIA AND FAR EAST • 40PEOPLES IN 27 REGIONS (REPUBLICS, KRAY, OBLAST AND AUTONOMOUS OKRUGS) • RECOGNIZED BY THE RF CONSTITUTION • TOTAL POPULATION – about 300.000 • SMALL NUMBERED/MINORITY ON TRADITIONAL LANDS (7 PEOPLES – LESS 1000, 12 – LESS 2000) • TRADITIONAL LIFE-STYLE AND SUBSISTENCE ECONOMY (DOMESTIC REINDEER HERDING, HUNTING, FISNING, WILD PLANTS GATHERING) • RAIPON IS UMBRELLA ORGANIZATION

4. Key Challenges • Dependence on nature that provide cultural and ethnical development • Most vulnerable and marginalized population living in remote areas spread over Arctic, Siberia and Far East with pure infrastructure • Industrial development and impact on traditional activity and life-style • Minority on traditional lands and assimilation process • Lack of efficient laws and implementation mechanisms

5. Arctic Strategies as new fashion

6. New common approaches • Sustainable resource use, not conservation • Adaptation socio-economic systems to climate change • International cooperation via Arctic Council • Voice of the aboriginal people in the decision-making process on the Arctic economic and social development • Multi-level governance for Arctic sustainable development in the conditions of global uncertainty

7. Peculiarities of the Russian Arctic • The most powerful industrial layer • The biggest resource sector • The largest share of urban population • The strongest paradoxes

8. POLITICAL AND ECONOMICAL PARADOXES • BEING THE LARGEST ARCTIC ZONE – LACK OF ARCTIC LAWS AND FEDERAL AGENCY • INNOVATION AND MODERNIZATION - RUSSIAN BUDGET STIIL BASICALLY DEPENDS ON NATURAL RESOURCES EXPLOTATION • STATE OWNED MONOPOLY VS PRIVATE BUSINESS AND TNC • GAP INCREASING: RICH - POOR • FEDERATION HORIZONTAL RELATIONS VS VERTICAL POWER CENTRALIZATION • GOOD LAWS VS LACK OF EFFICIENT MECHANISM • REGIONS’ ECONOMIC DEVELOPMENT ARE DIFFERENT • ENVIRONMENT IMPACT ASSESSMENT DOES NOT PLAY KEY ROLE ANY LONGER • LACK OF LEGAL FRAMEWORK ON BUSINESS AND IP REGULATION

9. Hot Spot Map • Arctic, Siberia and Far East • 70 conflict ongoing or planned project (oil and gas, hydro, mining, forest) • New challenge: giant dams planning (Evenkia, Yakutia)

12. WB POLICY ON INDIGENOUS PEOPLES 4.10 • Free, Prior and Informed Consultation • culturally appropriate • gender and inter-generational inclusive • conducted in good faith • voluntary, free of interference and non-manipulative • RESULTED IN • BROAD COMMUNITY SUPPORT

13. IFC Role in Russia • Private business loan • 146 projects - 2,84 billion (2007) • Russia - # 1 in global portfolio

14. IFC Safeguards on Indigenous Peoples • Performance Standards # 7 and some others • Consistent with WB Indigenous Peoples Policy but with focus on private sector • Key areas of focus: • Avoidance of adverse impacts • Disclosure, consultation and informed participation • Development opportunities • Requirement for broad community support

15. IFC investments in oil, gas and mining production in Russia

16. OAO Novatek (YNG) • OAO Novatek (Yurkharovneftegaz) • IFC $35m to finance project for Yurkharovskoye gas field • Development benefits include: • independent gas producer, taxes to Federal & local governments, employment & local community benefits (including for Indigenous People) • Environmental and Social aspects: • Indigenous Peoples Development Plan (IPDP) • Meet IFC E&S requirements for all projects from 2003 • Employment of Corporate Environmental & Social Coordinator and Advisor on IP

17. ARICOM – 2007 • Category A • Free prior informed consultations vs single meeting in a village • Broad community support? • Level of consultations and negotiation? • Low scale of potential adverse impacts? • Information disclosure?

18. EBRD • 1991 • 529 projects - 10,75 billion $ (2007) • Russia - 38% investment (2006) • 2010 – planned 4 billion EU

19. PR Indigenous Peoples - Principles • Partners in the transition process • Recognition for the Special Measures • Recognises principle in the UN Declaration on the rights of Indigenous Peoples for Prior Informed Consent • Recognition of Circumstances of IP in the Russian Federation

20. PR Indigenous Peoples - Objectives • To ensure respect for dignity, human rights, aspirations and culture of IP • To avoid adverse impacts • To enable IP to benefit from Bank supported projects • To support client to maintain relationships with IP • To foster good faith negotiation and informed participation • To respect and preserve the culture of IP

21. Irkutsk Oil case 2008 • To meet EBRD new IP requirements • From broad negotiations to free prior informed consent from IP • Monitoring and participation

22. IFC and EBRD Policies Review • Process of consultation with civil society and IP (quite different) • EBRD arranged 4 consultation meetings with IP (Murmansk, Kamchatka, Irkutsk, Moscow, 2007-2008) • IFC (1 in Moscow, 2010)

23. INDIGENOUS PEOPLES AND INTERNATIONAL STANDARDS • THE UN PERMANENT FORUM ON INDIGENOUS ISSUES • THE UN DECLARATION ON INDIGENOUS PEOPLES RIGHTS • THE ILO CONVENTION 169 • THE WORLD BANK POLICY • UNDP, UNEP, UNESCO, WIPO, CBD • Equator Principles, Conduct Code, UN Special Reporter

24. Suggested Indicators to measure

25. Business Case for Requiring FPIC • Increasing number of companies recognise that ‘regulatory licence to operate’ insufficient for sustainable operations. • By obtaining a community’s full consent and approval to go ahead, they de facto receive a social licence to operate • Reduces risk of incurring losses due to delays, conflict and protests which damage a company’s reputation.

26. Business Case for Requiring FPIC • Increasing number of companies recognise that ‘regulatory licence to operate’ insufficient for sustainable operations. • By obtaining a community’s full consent and approval to go ahead, they de facto receive a social licence to operate • Reduces risk of incurring losses due to delays, conflict and protests which damage a company’s reputation.

27. New vision and approach National legislation International law Best practices Company policy towards IP Business interest Dialogue Consultation Regulated expectations Risks and opportunities balance Minimize adverse impact Benefit sharing

28. GAPS • International law and standards vs national legislation system • Federal laws on IP have declarative manner lacking of implementation mechanism and make conflict with some other federal laws like Land Code • Federal power has not legal framework on IP and companies regulations • Regional authority and companies are waiting decisions from Moscow • Lack of civil practices of regulations between mineral users and communities

29. SUMMARY • Large scale industrial projects in all Siberian and Far Eastern regions related to new natural resources development aiming to strengthen Russia’s economy and its energy power • Large scale unprecedented conqueror of traditional lands and cutting down pastures, sacred sites, hunting and fishing spots that make a great pressure and impact on indigenous peoples livelihood • Increased role of International Financial Institutions

30. GOVERNMENT BUSINESS BANKS LAND AND NATURAL RESOURCES INDIGENOUS PEOPLES AND LOCAL COMMUNITIES CONFLICT OF INTERESTS OR NEGOTIATION TOOL AND DEVELOPMENT

31. CONCLUSIONS AND RECOMMENDATIONS FOR IFC • In Russian case of cult of force but not cult of law and under conditions of strong administrative pressure Consultation or Broad Community Support used to have declarative and manipulation feature • FPIC leads to obligation of following rights and duties of parties • FPIC is not equivalent to VETO right but on contrary stimulates the negotiation process, trust, compromise and mutual benefit development • FPIC fully and adequate meets implementation of collective rights of IP on decision making towards their development • FPIC is fundamental basis of justice and economic benefit sharing but first of all a contribution to human and social development of communities and territory at whole • FPIC encourages development of state-private partnership with IP and sustainable development of the region at whole, искореняю психологию временщика • BRING INTERNATIONAL STANDARDS AND BEST PRACTICES TO RUSSIA • ARRANGE ANNUAL CONSULTATIONS WITH RAIPON, COMPANIES MANAGEMENT AND OFFICIALS TO MONITOR IFC SUPPORTED PROJECTS

32. What kind of society we want to see left behind when the industry leave. . .

34. SUNRISE OR SUNSET

35. THANKS FOR YOUR ATTENTIONWWW.RAIPON.INFORUSSIAN ASSOCIATION OF INDIGENOUS PEOPLES OF THE NORTH