Indigenous people blockade Sakhalin construction sites, January 2005
Indigenous Peoples say they have been misled by the oil and gas industry on Sakhalin Island, and, as with other parts of the Sakhalin population, all constructive dialogue between indigenous groups and Sakhalin Energy has broken down.
The Sakhalin II project has caused irreparable damage to the traditional way of life of the Nivkh, Uilta (Oroks), Evenk, and Nanai peoples that have inhabit Sakhalin Island since long before Russian settlers arrived. These groups have brought their concerns to the level of direct protest action, but their demands for fair compensation and a cultural impact assessment go unheard by Sakhalin Energy Investment Company, Ltd. (SEIC), Shell's operator on Sakhalin.
Representatives of local indigenous groups blockaded oil and gas construction sites in January 2005, the dead of winter, to protest the oil and gas industry's accumulated negative impacts on the community's quality of life. The industry, and also the government of Sakhalin, have responded to their concerns with inaction and misrepresentation of the potential benefits and impacts of the oil and gas projects.
The indigenous peoples of Sakhalin declared in the fall of 2004 that the Sakhalin II project had been the source of many problems for the island's indigenous peoples (including damage to fish resources) since 1998, when the Molikpaq platform was installed. Despite this, SEIC and it’s shareholders (Royal Dutch/Shell Group, Mitsui and Mitsubishi) have yet to pay appropriate compensation directly to indigenous communities. Charitable financial help from SEIC/Shell was provided in miniscule amounts (around $330,000 for 10 years), to be disbursed throughout the 10-year span of the Sakhalin II project.
The Indigenous Congress of Sakhalin wrote the following letter to the president of the European Bank for Reconstruction and Development (EBRD, a public bank that was considering funding Sakhalin II at the time):
"The Sakhalin II project is developing rapidly. We are afraid that construction activities under the project will reduce fish stocks because of pipeline trenches crossing the salmon spawning rivers, will destroy reindeer pastures and reduce the forest animal population because of onshore pipeline construction, and will pollute our environment. We take note that the harm done to the animal and plant world in traditional land-use areas takes a direct toll on the vital activities of indigenous peoples. However the damage inflicted on the traditional land-use of indigenous peoples, living a life style such as the indigenous do, is not taken into account, and isn't apparent to the management of Sakhalin Energy."
Though SEIC/Shell did adopt the Sakhalin Indigenous Minority Development Plan (SIMDP), it's measures are inadequate and it was developed only after the project was deep into the construction phase after much of the damage had already occured.
