Ethical Performance
inside intelligence for responsible business


Barclays, Standard Chartered challenged over Russian oil and gas complex pollution

September 2012

Three British banks and the Shell oil company have come under attack from civil society groups for failing to address alleged environmental and human rights abuses by a giant integrated oil and gas complex in which they have invested.
The Prigorodnoye Production Complex, on Russia’s Sakhalin Island, includes a liquefied natural gas (LNG) plant, and oil and gas export terminals, and forms part of Sakhalin II, one of the world’s largest integrated energy projects.
But communities nearby claim the Russian Sakhalin Energy Investment Company-run operation is harming their health, jeopardising their food security, as well as polluting and damaging the local environment. They also claim the company has not resettled them or offered appropriate compensation, in violation of Russian law and international standards, including OECD guidelines.
A complaint has been filed in Holland and the UK. 
“Shell, Royal Bank of Scotland (RBS), Standard Chartered and Barclays share responsibility for the environmental and community damage caused by Prigorodnoye,” said Doug Norlen, policy director at US-based Pacific Environment, which works closely with Sakhalin Environmental Watch, a group representing the affected residents.
Sarah Singh, an attorney at US-based Accountability Counsel, which helped with filing the complaint, said: “Shell, RBS, Standard Chartered and Barclays have thus far failed to use their influence over the project operator to correct the environmental and human rights abuses.”

Sakhalin Energy Investment Company | Europe | Human rights


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