Alleged environment violation in Russia
Lead NCPGermany
Supporting NCP(s)None Selected
DescriptionSpecific instance notified by an NGO regarding the activities of a multinational enterprise in Russia.
Theme(s)Environment
Date16 Dec 2002
Host country(ies)Russian Federation
SourceNGO
Industry sectorMining and quarrying
StatusNot accepted
Summary

In December 2002 the German NCP received a request for review from an NGO alleging that a German-owned multinational company had breached the environment provisions of the Guidelines in connection with the extraction and transport of oil from Russian oil fields.

The NGOs argued that the German management board – despite its business relations with Russian oil companies and despite long-term supply contracts – was ignoring the conditions under which oil was being extracted in western Siberia.

The NCP had doubts as to whether the Guidelines applied to this case, because the allegations involved trade relations only. The NCP submitted this question to the OECD Investment Committee, which is competent for such matters; it also attempted simultaneously to obtain support with regard to the questions raised in the complaint and arranged talks. The Investment Committee’s deliberations on the issues of “investment nexus” and “supply chain” gave the NCP no cause to affirm that the Guidelines were applicable to this case, which the NCP pointed out in its letter to the NGOs of 16 July 2004.