B1 Non-refereed article in a scientific journal

Participation in Benefit-Sharing Arrangements in the Komi Republic




AuthorsMinna Pappila, Soili Nysten-Haarala, Ekaterina Britcyna

PublisherCenter for Security Studies (CSS)

Publication year2017

JournalRussian Analytical Digest

Journal acronymRAD

Issue202

First page 6

Last page9

eISSN1863-0421

Web address http://www.css.ethz.ch/content/specialinterest/gess/cis/center-for-securities-studies/en/publications/rad/rad-all-issues/details.html?id=/n/o/2/0/no_202_oil_company_benefit_sharing_in_th

Self-archived copy’s web addresshttps://research.utu.fi/converis/portal/detail/Publication/26782229


Abstract

The oil industry is vital for the economy of the Komi Republic in Russia. It also benefits the municipalities
near oil production sites in terms of benefit-sharing agreements between oil companies and local authorities.
These agreements compose an important part of the corporate social responsibility (CSR) of oil companies
working in the Komi Republic, and in Russia in general. While this financial support is essential for
local communities, local people also primarily bear the negative environmental impacts of oil operations.
Yet, they rarely have a chance to participate either in environmental decision-making or in formulating benefit-
sharing agreements. This paper discusses why this is problematic, and demonstrates new developments
in Russian CSR practices: in 2015, the oil company Lukoil-Komi concluded a new type of benefit-sharing
agreement with the indigenous peoples’ association Izvatas. In addition to traditional social benefits, the
company agreed to consult the communities on new projects and committed to disclose information about
oil leaks publicly. This more recent type of benefit-sharing arrangement incorporates elements of local participation in environmental issues into the prevailing form of philanthropic and paternalistic CSR practices.


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