12 May 2006
The situation on remote Sakhalin Island, considered to be one of the most promising new ventures by oil and gas corporations, has many concerned that environmental protection is taking a backseat to oil extraction.
As the price of oil continues to rise, large oil and gas companies are scrambling to extract these resources from increasingly remote locations around the world. A prime example is Sakhalin island off the Eastern coast of Russia. Sakhalin Energy Investment Company, a Shell owned corporation, continues to move forward with the $12 billion project despite the grave concerns of local communities, indigenous populations and environmentalists from around the world.
According to a coalition of NGOs opposed to the largest single oil and gas project ever undertaken, "The European Bank for Reconstruction and Development has deemed Sakhalin II “unfit for purpose” due to environmental concerns. The project is in direct violation of the Equator Principles, a set of
voluntarily guidelines adopted by the world’s leading banks “to promote responsible environmental stewardship and socially responsible development.” A number of Equator Principles signatory banks have already indicated that they will not fund Sakhalin II."