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A Landmark Agreement

This is the first editorial in this week's issue of the Sakhalin Times

The Sakhalin Administration and all the oil companies operating in Sakhalin need to be commended for signing the environmental agreement. Although the general public is still unaware of the provisions made in the agreement, we do know that there are provisions to prevent oil spills and emergency measures in case of calamities or accidents. One of the biggest complaints the environmentalists have against the oil companies is that they don’t take the same amount of caution vis-à-vis the environment in Sakhalin as they do in Alaska or the North Sea. However, the oil companies have shown a great deal of professionalism by answering most allegations hurled at them and showing a willingness to negotiate with the environmentalists and Indigenous Peoples.

We are still awaiting a formal press-release either from the Sakhalin Administration or any of the oil companies stating the exact provisions of the agreement. It is essential for the agreement to have a proper disaster management plan considering the fact that Sakhalin is prone to earthquakes, cyclones and other natural disasters. Last year, when Typhoon Songda caused the Cristoforo Colombo to run aground, Sakhalin Energy did too little too late. It was established beyond a shadow of doubt that the captain of the dredger was responsible for the diesel spill but he left Sakhalin over a year ago, on a guarantee made by the Belgian Ambassador in Russia. Given the way the Russian courts operate, it is unlikely that the captain will ever be punished in Sakhalin.

The federal government also needs to modify Russia’s environmental laws. Russian laws can be so vague at times that they are subject to interpretation. In cases where they are not vague, they are simply too lax. The Sakhalin-1 team got away with a tiny fine for the mass death of smelt near Chayvo Bay last year. It actually made more sense for them to admit guilt and pay the fine than try and establish their innocence. A big reason that multi-national oil giants don’t take Russia as seriously as they do European countries is that environmental laws here can be bent or manipulated and there are easy ways to beat the system. Environmental groups have been so unsuccessful in getting the Russian courts to stop the oil companies from what they see as activities harmful to the environment that they have resorted to approaching the oil projects’ lenders like the EBRD.

While commending the Sakhalin Administration and the oil companies for signing this environmental agreement, we call on the Russian Government to bring about stricter environmental legislation and a more effective way of dealing with violations.


October 27, 2005 | 11:44 AM Comments  1 comments

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Sakhalin can be a major player in North Korean and regional stability

This is the first editorial in this week's issue of the Sakhalin Times

The Democratic People’s Republic of Korea is a global pariah at the moment. The country boasts of a sparkling clean capital with towering sky-scrapers and a modern metro. At the same time, those buildings aren’t lit at night because of major power shortages. North Korea has also been facing food shortages for a countless number of years and has been dependent on South Korean, Japanese and American aid to meet its food requirements. The same country that has trouble supplying its people with food and power has been threatening to become a nuclear-armed state. With a large army and a dictatorial dynasty at the helm of affairs, the country remains a threat to Japan and South Korea.

Reigning in such a regime is an extremely difficult task. There are just two countries that have any sort of power over the North Korean regime, Russia and China. Beijing has played a major role in nuclear proliferation in North Korea and may not be unhappy about the looming threat that the country possesses to Japan. Russia would however gain a lot from stability in the Korean Peninsula. Japan and South Korea are Russia’s major trading partners and any instability in those countries would have an adverse impact on the economy of the Russian Far East. Sakhalin would suffer as two major markets for energy supplies would be in flames in case of a North Korean attack. Russia has to play the most important role in reigning North Korea in.

A combination of bad policies and international isolation has turned North Korea into the poorest country in the region. It’s only better economic prospects and less international isolation that will make North Korea reduce its belligerence. With Russian help, the country can slowly become a part of the international community and reduce its many woes.

North Korea has been a long term ally of Russia and the country’s proximity to Sakhalin necessitates a closer relationship with the region. Sakhalin has around 600 registered North Korean citizens. Vladivostok and Khabarovsk also have small North Korean communities. Given Russia’s labour shortage, an ideal country to meet the Russian Far East’s manpower needs would be North Korea. The country has never had a semblance of hostility for Russia or made any facetious claims on Russian territory. Providing greater access for North Korean citizens to Sakhalin’s labour market will prove immensely beneficial to both sides.

Another major contribution that Sakhalin can make towards stability in the region is offering both North and South Korea natural gas through a pipeline. South Korea’s energy needs would be met as would North Korea’s and Pyongyang would get much needed funds by way of transit charges. Russia in turn could guarantee supplies to Seoul. This north-south dependence could also be the first step in permanent peace between the neighbours. Pure and simple economics and practical solutions are the way out of a potential bloody conflict in the Korean peninsula and both countries have to look no further than Sakhalin to start patching up 60 years of animosity.

October 5, 2005 | 9:16 AM Comments  1 comments

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