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Indigenous Peoples and Industrial Companies: Best Practices of Cooperation in the Russian Federation

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Indigenous Peoples and Industrial Companies: Best Practices of Cooperation in the Russian Federation INDIGENOUS PEOPLES AND INDUSTRIAL COMPANIES: BEST PRACTICES OF COOPERATION IN THE RUSSIAN FEDERATION Moscow 2012 2 Content Introduction by Sergey Kharyuchi ..............................................................................3 Introduction by Evgeniy Velikhov ..............................................................................4 Introduction by Andrei Galaev ....................................................................................5 Irkutsk Oil Company (IOC) ............................................................................6 Kinross Gold Corporation ............................................................................12 Polymetal Company ..........................................................................................22 Rosneft Oil Company .........................................................................................29 Sakhalin Energy Investment Company Ltd. ...................................39 Concluding remarks .........................................................................................................46 3 Russian Association of Indigenous Peoples of the North, Siberia and the Far East of the Russian Federation (RAIPON) represents and protects inter- ests of indigenous population of the Russian North. Currently the Association faces a multitude of ob- jectives connected with the preservation of health of indigenous peoples, with the resolution of truly com- plex social and economic problems, with saving tra- ditional culture inherited from ancestors. Meanwhile, the strategic goal is achievement of the sustainable development. In dealing with these tasks the Asso- ciation fruitfully and for a long time cooperates with the United Nations Global Compact Network and with the Public Chamber of the Russian Federation. Primary reasons of modern ill-being of indigenous peoples are that fun- damentals of their economic, cultural and spiritual life are undermined, habitat and principles of the traditional economy are broken. Development of the North is inevitable, and we understand the signi�icance and importance of this task. But it should be carried out competently, taking into account ecological require- ments, speci�ics and interests of the local population, with legislative registra- tion of issues of assessment and damage compensation. Activities of extracting companies in the territories of ancestral habitat and managing of indigenous peoples can be destructive, but can promote preservation and development of peoples who live on these severe Northern lands from ancient times. Cooperation of indigenous peoples with the state institutions started from the moment of establishment of the Association in 1990. However, there was a longer way to cooperation with the private sector. On this way there were dis- agreements, misunderstanding and con�licts. At �irst the partnership seemed to be an unachievable goal to Russian indigenous peoples. But we worked, stud- ied carefully foreign experience. We held negotiations and looked for common ground in our interests. It is worth noting that social movement of indigenous peoples has suf�icient experience to cooperate with companies on the basis of equality and to achieve results that will improve their situation and will give impulse to further social, economic and cultural development. As a result of joint efforts Russian indigenous peoples and the private sec- tor managed to reach mutual understanding in a number of regions. They were able to expand cooperation framework from agreements on damage prevention and compensation to joint strategic planning of development of settlements, to implementation of programs of support of entrepreneurship. Successful Russian practices have already been created to date, effective mechanisms of partner re- lations have been set up. This brochure that became the result of joining efforts of the UN Global Compact Network in Russia, the Public Chamber of the Russian Federation and Association of Indigenous Peoples of the North contains the best examples of our cooperation. I hope that distribution of this experience, its use by other companies and communities of indigenous peoples of Russia will help to keep aboriginal forms of management that sustain the whole centuries-old civilization of Northern peoples. Sergey Kharyuchi President of the Russian Association of Indigenous Peoples of the North, Siberia and the Far East 4 The Public Chamber of the Russian Federation is responsible for interaction of the citizens of the country with governmental authorities. Its major objectives are: support of civil society and assistance to formation of its institutes, establish- ment of effective mechanisms of coordination of interests and cooperation between the state, non- commercial organizations and private sector. The Public Chamber deals with various is- sues — environmental, social, cultural, but �irst of all those of them which demand priority attention from the state and civil society. One of such prob- lems is dif�icult economic and social state of indi- genous peoples of the Russian North, Siberia and the Far East. Efforts of the state and civil society should be directed to health protection of indigenous northerners, to the pro- motion of social and economic development and preservation of their unique culture that is a major part of culture of the whole country. This task is getting more important due to the intensi�ication of industrial development of the terri- tories of their ancestral residence. Without social responsibility of the business survival and development of indigenous population living on vast territories of the Russian North is almost impossible. It is important to know that in Russia many structures of civil society suc- cessfully develop. It is hard to overestimate the role of self-organization of indig- enous peoples in formation of civil society. They are particularly socially active. For this reason cooperation with them and their obligatory participation in the decision-making process that covers their interests should become the principal form of support of indigenous peoples by the state and the private sector. Equal in rights partnership of indigenous peoples with the private sector together with involvement of state structures will allow to resolve a number of acute prob- lems and will give an impulse to further development of indigenous peoples and growth of their civil activity. The United Nations Global Compact network in Russia provided oppor- tunity both to indigenous people and companies from different countries to ex- change the most successful practices of partnership. Experience of cooperation between Russian companies and indigenous peoples of the North is especially important as it takes into account all the peculiarities of interaction in dif�icult and diverse conditions of the Russian North. In this brochure the best practices and models of partnership between the private sector and Russian indigenous peoples are brought together, their strategic principles, methods and mecha- nisms of implementation are formulated. We hope that they will give an impulse to constructive interaction to those companies which for any reason have not been involved into it yet, will allow them to �ind their own way of building a part- nership. We also hope that the given examples of successful experience will help to improve and to make more effective already existing partnerships. Evgeniy Velikhov Secretary of the Public Chamber of the Russian Federation 5 The UN Global Compact is a major international initiative focused on the development of corporate citizenship and sustainability. The Global Compact today integrates about 100 local networks. Oper- ating within the framework of the Global Compact principles, local networks establish priority areas of activity in their home countries and their commit- ment makes it possible to draw on both local and world experience. Naturally, local Global Compact networks put more emphasis on the most sensitive social aspects. In case of the Russian Network, as well as in many other countries, one of such aspects is sustainable development of indigenous peoples and their engagement with industrial companies. The Russian Federation is a home of more than 180 nationalities, 40 of which are indigenous minorities of the North, Sibe- ria and the Russian Far East. Russian law secures a special status for indigenous peoples and advocacy of their rights and interests is regarded by the Russian government to be a priority. Many companies that operate in the areas of tradi- tional residence and economic activities of indigenous minorities consider en- gagement with the local indigenous communities, support of their development, improvement of health care and education, preservation of cultural identity and traditional way of life to be their paramount task. Many such companies have accumulated vast experience which can rightly be considered the best not only in Russia but also globally. Marking the International Day of the World’s Indigenous People on 9 August 2011, and anticipating the 2014 World Conference on Indigenous Peo- ples, UN Secretary-General Ban Ki-moon called “to take concrete steps to ad- dress the challenges facing indigenous peoples and to work in full partnership with indigenous people to identify practical ideas and proposals for action”. In September 2011, the UN Global Compact Network Russia, together with the RF Public Chamber and Russian Association of Indigenous Peoples of the North (RAIPON) held the international
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