Cablegate: Russia: Environmental Ngos Focus On Sochi

VZCZCXRO7606
RR RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD
DE RUEHMO #1919/01 1160731
ZNR UUUUU ZZH
R 260731Z APR 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC 9712
INFO RUEHZN/EST COLLECTIVE
RUEAEPA/HQ EPA WASHDC
RUEHYG/AMCONSUL YEKATERINBURG 2395
RUEHVK/AMCONSUL VLADIVOSTOK 2074

UNCLAS SECTION 01 OF 03 MOSCOW 001919

SIPDIS

SIPDIS

DEPARTMENT FOR OES/ENV, EUR/RUS and EUR/PGI

E.O. 12958: N/A
TAGS: SENV PGOV RS
SUBJECT: Russia: Environmental NGOs Focus on Sochi

REFS: A) 06 MOSCOW 8221
B) 06 MOSCOW 8300

MOSCOW 00001919 001.2 OF 003

1. SUMMARY: Large scale development plans for Sochi, a major
resort in the south of Russia and one of three finalists to host the
2014 Winter Olympics, continue to prompt concerns among
environmental NGOs in Russia. Despite intense government pressure
and Rosprirodnadzor approval of an environmental impact assessment,
NGOs persist in objecting to development in sensitive protected
areas. World Wildlife Fund is pursuing informal lobbying channels,
while Greenpeace-Russia has filed a second legal challenge that will
be heard June 6. Most of the government's development plan will be
completed irrespective of whether Sochi is selected to host the 2014
games, and should provide some ecological improvements to the
region's sagging infrastructure. Still, the NGO activism
demonstrates a high degree of engagement in the process -- and
acceptance of their involvement by Russian Government agencies --
and has a fair chance at influencing the outcome. END SUMMARY.

Background
----------

2. Long one of Russia's leading nature retreats, Sochi, located in
Krasnodar Kray, is one of three finalists to host the 2014 Winter
Olympics. A pristine and unique environment tucked between the
Western Caucasus Mountains and the Black Sea, Sochi is home to both
the Caucasus Nature Reserve (a UNESCO World Heritage Site) and Sochi
National Park. Buoyed by Russia's strong economy, President Putin
has taken a significant personal interest in upgrading Sochi into a
world class resort. The Federal Targeted Program for the
"Development of the City of Sochi as a Mountain Climate Resort
(2006-2014)" calls for $12 billion in investment to be split 60-40
between the federal government and private investors. However,
these development plans have met stiff challenges from environmental
NGO's in Russia. EST recently met with representatives of the two
largest NGOs involved -- Igor Chestin, Director of World Wildlife
Fund-Russia (WWF), and Ivan Blokov, Campaign Director for
Greenpeace-Russia -- to discuss their ongoing action.

3. The government's proposal was adopted June 8, 2006, but was
promptly challenged in court by Greenpeace for lack of an
environmental impact assessment and plans to build within the
protected buffer zones of Sochi National Park and the Caucasus
Nature Reserve. Greenpeace ultimately lost its case in the Russian
Supreme Court this March in what Blokov described as a "highly
political decision," but the challenge -- and a letter from Director
Chestin to Putin in February -- prompted Deputy Prime Minister
Zhukov to order the Ministry of Natural Resources to form an expert
ecological group to offer recommendations for an environmental
impact assessment. This advisory ecological commission, headed by
Natural Resources Deputy Minister Anatoliy Tyomkin, includes experts
from ministries, academic institutes, regional administration, and
NGO's. (NOTE: Several NGO's known for vocal opposition to the
development proposal were excluded. END NOTE). WWF's Chestin is a
member and also sits on the Ministry for Economic Development and
Trade (MEDT) Coordination Council. The MEDT council is tasked with
overseeing implementation of Sochi's development, and consists of
representatives from several ministries, the bid committee, the
Olympic committee, private investors -- the major players are
Gazprom, Interross, and Basic Element -- and administrators from the
Krasnodar region.

Heavy State Pressure Secures Development Approval
--------------------------------------------- ----

4. On March 30 the Ministry of Natural Resources advisory
ecological commission issued an almost unanimous positive
environmental impact assessment; only the representative from
Greenpeace objected. With Sochi's Olympic bid depending on the
federal development plans, many parties had a strong interest in
approval. According to Chestin and Blokov, members of the group
were pressured (some with threats to research budgets) by officials
to issue a positive assessment. Chestin supported the final
conclusions, but attached a dissenting opinion. In his view, the
most critical of the expert opinions -- those dealing with animal
migratory patterns and the integrity of protected areas -- were
wrongly omitted from the final assessment. As each specialist
reviewed only issues in their narrow field of expertise, the
omission of key expert objections softened the final text in a way
that, by glossing over critical issues, allowed all members to
accept. The impact assessment was officially approved by
Rosprirodnadzor on April 17.

Government Development Plans Not All Bad...
-------------------------------------------

5. The federal development plans will provide needed ecological
improvements and are preferable to the alternative of unregulated

MOSCOW 00001919 002.2 OF 003

development. Chestin noted that Sochi is one of the most prominent
resorts in Russia and it is not a question of whether or not there
will be development, but rather where and how it will be carried
out. The Federal Targeted Program for the development of Sochi is a
significant government priority. It is a $12 billion dollar plan,
70 percent of which is to be completed irrespective of Sochi's
selection to host the 2014 Winter Games. In addition to developing
the local economy, the project will bring ecological improvements to
the region, including needed solid and biological waste treatment
facilities, proper dumps and recycling facilities, a sustainable
water management system, and energy efficiency initiatives. The MNR
ecological commission also successfully lobbied the government to
restrict nighttime road construction to lessen the threat to certain
mammal species. It has also been promised that its views will be
incorporated in the coming months as the MEDT commission defines
specific parameters for monitoring construction. It is because of
these ecological improvements that WWF generally supports the
federal development plans. Many points of concern continue to be
raised by environmental NGOs, however.

...but NGO Objections Persist
-----------------------------

6. NGOs continue to press the government to further address the
weak points of its proposal. WWF is particularly anxious about a
major sports and hotel complex that is to be built in the buffer
zone of the Caucasus Nature Reserve, and has suggested an
alternative location. WWF is concerned that the complex, with its
bobsled track, hotel complex, and an Olympic Village in the
mountains approximately 25 km east of Krasnaya Polyana, will
interrupt the migratory patterns of deer and wild boar in and out of
the Caucasus Nature Reserve. Greenpeace has broader concerns,
reluctantly accepting development of recreational sports facilities
in protected areas as a "grey area" that is technically legal, but
arguing there are nine other illegal construction projects,
including a spa and hydro-electric center, planned in these areas.
Greenpeace representative Blokov claims that the new law pushed
through by the Ministry of Natural Resource's advisory ecological
commission requiring environmental impact assessments for all major
developments will not be applied retroactively to projects already
begun. He said that the authorities have made a calculated decision
to start work on many of the development projects in order to
circumvent this new requirement.

What Comes Next?
----------------

7. After losing a legal challenge in the beginning of March that
rose all the way to the Russian Supreme Court, Greenpeace has filed
a second court brief. The first hearing will be June 6. WWF plans
to continue to work in MEDT's Coordination Council to press both the
government and private investors to relocate construction projects
(something Blokov said Greenpeace unofficially supports). However,
while the proposed site is closer to existing infrastructure
(roughly 1 km north of Krasnaya Polyana) and will almost certainly
meet the technical requirements of the Bobsled track and Olympic
Village, officials remain reluctant to change their initial
planning. If a suitable compromise cannot be reached with the
government, Chestin said he will focus on working directly with
private investors. He has almost reached an agreement with one,
Interross.

8. Chestin also claimed that, if necessary, he is prepared to
appeal to the IOC to bring in an external IUCN-World Conservation
Union commission to review the Russian environmental impact
assessment. As no changes are allowed to the bid proposal before
the July decision, such a move to re-evaluate the assessment would
likely lead to the dismissal of Russia's 2014 Winter Olympic Bid and
eliminate some critical construction such as the Olympic village.
Such a direct attack on the Olympic bid is unlikely, but it reflects
growing assertiveness on the part of NGOs seeking to influence
policy decisions. (NOTE: Even if WWF is successful in reaching an
agreement to move the construction site, no actual change to the
development plans would be made until after the July IOC bid
announcement, under an existing agreement with the MEDT. END NOTE)

Comment
-------

9. Environmental NGOs clearly are playing an active role in shaping
Sochi development plans. The Russian Government has acknowledged
that role and their interests by including some of them in the
review process. Although the federal development program for Sochi
is generally sound, these NGOs have stepped forward to fill an
important niche as they pressure the Russian government to defend
and clarify the weak points in its proposal. Still, it is unlikely
they will obstruct Russia's bid for the 2014 Winter Games. Because
this bid is such a matter of pride amongst Russian officials, any

MOSCOW 00001919 003.2 OF 003

deliberate attempt to derail it would probably cause NGOs more harm
than good. Despite contrasting avenues of action -- both informal
lobbying and direct legal challenges -- the environmental NGOs
continue to establish themselves as active stakeholders in the
policy making process.

BURNS

© Scoop Media