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2006 December 12   12:26

Court proceedings on Sakhalin II likely to start in March

Court proceedings on compensation for environmental damage inflicted by the Sakhalin II oil and gas project in Russia's Far East are likely to start in March 2007, the environmental watchdog said Tuesday, RIA Novosti reports.

The $22-billion project, controlled by Royal Dutch Shell, has been accused of causing serious damage to Sakhalin Island's ecology, including deforestation, toxic waste dumping and soil erosion.

"I think we must be ready to start court proceedings by early March," said Oleg Mitvol, deputy head of the Federal Agency for the Oversight of Natural Resources.

He said the agency will prepare legal proposals for the government within ten days, and set the terms of contracts to be signed with legal firms acting for the government.

Mitvol said the proceedings are likely to be launched in various courts, in Russia, Sweden, Belgium, Britain, Italy, Japan and possibly the United States. Russia will use international laws that envisage triple compensation of damages plus payment of legal costs, the official added.

He said the level of compensation will be calculated by next summer.

Project operator Sakhalin Energy, controlled by Shell, has been under scrutiny since September, when the Natural Resources Ministry canceled its 2003 approval of Sakhalin II.

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