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Sustainability 2017, 9(8), 1326; doi:10.3390/su9081326

Benefit-Sharing Arrangements between Oil Companies and Indigenous People in Russian Northern Regions

1
Department of Comparative Political Studies, North-West Institute of Management, Russian Presidential Academy of National Economy and Public Administration, Faculty of law, University of Lapland, Rovaniemi 96300, Finland
2
Centre for Independent Social Research, Environmental Policy Group, Wageningen University, Wageningen 6708 PB, The Netherlands
*
Author to whom correspondence should be addressed.
Received: 28 June 2017 / Revised: 24 July 2017 / Accepted: 25 July 2017 / Published: 29 July 2017
(This article belongs to the Section Sustainable Use of the Environment and Resources)
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Abstract

This research provides an insight into various modes of benefit-sharing agreements between oil and gas companies and indigenous people in Russia’s northern regions, e.g., paternalism, corporate social responsibility, and partnership. The paper examines factors that influence benefit-sharing arrangements, such as regional specifics, dependency on international investors, corporate policies, and the level of local community organization. It analyses which instruments of benefit-sharing are most favourable, and why, for indigenous communities. The authors conducted research in three regions of Russia (Nenets Autonomous Okrug; Khanty-Mansi Autonomous Okrug, and Sakhalin) by using qualitative methodology that involved semi-structured interviews, participant observation, and document analysis. Theoretically, the paper builds on the concept of benefit-sharing arrangements combined with the social equity framework. We assessed each case study in terms of procedural and distributive equity in benefit-sharing. The paper demonstrates that the procedural equity is the highest in the partnership mode of benefit-sharing on the island of Sakhalin where companies implement globally-accepted standards recognized by investment banks. The cases in Nenets Autonomous Okrug and Khanti Mansi Autonomous Okrug represent a reset of Soviet practices on a market basis, but whereas the distributional equity may be sufficient, the procedural equity is low as decisions are made by the company in concord with regional authorities. View Full-Text
Keywords: sustainability; indigenous people; oil and gas companies; benefit-sharing arrangements; Russian northern regions sustainability; indigenous people; oil and gas companies; benefit-sharing arrangements; Russian northern regions
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Tulaeva, S.; Tysiachniouk, M. Benefit-Sharing Arrangements between Oil Companies and Indigenous People in Russian Northern Regions. Sustainability 2017, 9, 1326.

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