Three years after the launch of the preferential regime of the Arctic zone of the Russian Federation (AZRF), the number of the Arctic’s resident companies exceeded 650 and keeps on growing. Today, due to the AZRF regime and establishing two Advanced Development Zones (ADZs) in the Murmansk Region and Chukotka, about 730 investment projects are under implementation. Over 1.5 trillion rubles of investments are planned and 25 thousand new jobs are expected, and over 8 thousand jobs have already been created. Maxim Dankin, Director of the Department for the Development of the Arctic Zone of the RF and the Implementation of Infrastructure Projects of the Ministry for the Development of the Russian Far East, announced this at the Eastern Economic Forum (EEF) held in Vladivostok in September.
He noted that in 2020, the President of Russia signed two key strategic documents - the Fundamentals of the State Policy in the Arctic and the Development Strategy of the Arctic Zone until 2035. These documents specified the protection of the primordial living environment of the indigenous minorities of the North and stimulation of their traditional economic activities as priority areas.
The Russian Arctic zone includes 9 regions, and in 7 of them, the areas of residence and farming of indigenous peoples are defined at the legislative level, said Maria Zaviyalova, Deputy Director of the Department for Supporting the Implementation of Investment Projects, the Far East and the Arctic Development Corporation.
Experts say that while actively developing the region, its indigenous communities living in the Arctic should be taken into account because the Arctic nature is more prone to damage and requires a special approach. To coordinate the active implementation of projects, a Public Council under the Ministry for Development of the Russian Far East was established that includes the representatives of the indigenous peoples and public chambers of the respective regions. In addition, as part of the implementation of the legislation on traditional economic activities, a support program for indigenous minorities of the North was developed. It includes the tasks of regulatory development and the development of industrial and technological infrastructure, as well as the development of research activities and tourism.
At the same time, the Standard of Responsibility of Resident Companies of the Arctic Zone to the Indigenous Minorities of the North became a key element of the work. “This document also mentions such a term as Free, Prior and Informed Consent (FPIC) of the representatives of the indigenous minorities of the North when they move from places where industrial facilities are under construction and in other similar situations. This is an attempt to work out a fundamental document, a “bible” at the state level,” says Andrey Grachyov, Vice President of Norilsk Nickel.
Speaking about the company’s policy regarding the indigenous minorities of the North, Andrey Grachyov notes that its core principle is “nothing for us without us”. That is why the representatives of most indigenous communities took part in the discussions and their proposals were included in the program and the agreement between Norilsk Nickel and the representatives of the indigenous minorities of the North (the Association of Indigenous Peoples of the North, Siberia and the Far East of the RF) and the regional and the Taimyr organizations. “The document provides for more than 40 measures with a total cost of 2 bn rubles for a period of 5 years. The control over the implementation and coordination of this program is carried out by the Coordination Council at the Polar subsidiary of Norilsk Nickel that includes the representatives of over 60 communities. A department for working with the indigenous minorities of the North has been set up at the Polar subsidiary of the company, which has made it possible to work on a daily basis and increase the efficiency of the Coordination Council,” said the Norilsk Nickel’s representative.
Resettling the representatives of the indigenous peoples of the North from the village of Tukhard in compliance with the FPIC procedure is among the projects already implemented, as well as providing own apartments to orphans belonging to the indigenous peoples of the North, the construction of houses, fish and venison processing shops, village clubs, and large-scale cultural projects, including the restoration of the Nenets written language. At the Polar State University, the company is implementing now the Students of Taimyr program to provide quotas to the representatives of the indigenous minorities of the North who are on complete state provision and get scholarships.
“Norilsk Nickel is an example of carrying out business in the Arctic in accordance with its social responsibility principles,” noted Maxim Dankin. However, not every company pursues a similar policy, according to the representative of the Ministry for Development of the Russian Far East of the RF. The fact is that at present, the Standard of Responsibility of Resident Companies of the Arctic Zone to the Indigenous Minorities of the North is advisory in its nature. In fact, the state advises businesses coming to the Arctic the ways to carry out socially responsible activities and take into account the interests of the local communities.
According to representatives of the state and socially responsible businesses, it is necessary to improve the existing Standard taking into account the industry and territorial specifics and adopt it as a mandatory federal law. The document should be discussed by the professional and expert communities and take into account the existing best practices of the resident companies.
They include the projects to clean up garbage from the Arctic areas, as well as the objects causing ‘accumulated’ environmental damage, to provide assistance in the employment of the local population, the projects to develop the transport and social infrastructures, the implementation of which was discussed by Alexander Larionov, the representative of the Yakutia’ company YANOLOVO, at the Eastern Economic Forum.
Lyudmila Danilova, Executive Director of Kupol, the Chukotka Non-Profit Fund for Social Development, emphasized that all documents should be worked out with the participation of three parties, including the representatives of the indigenous minorities of the North, the state and business. A positive experience in this work has been gained in Chukotka.
Alexey Tsykarev, expert at the UN Permanent Forum on Indigenous People (2013–2022), noted that the Russian experience in this area is in compliance with the UN recommendations and best international practices. “In accordance with the UN Declaration on the Rights of Indigenous Peoples, all states should work out appropriate national standards. But the number of states that have done this can be counted on the fingers of one hand,” the expert emphasized.
According to him, it is very important that the Russian Standard spells out the mechanisms for working out agreements, carrying out consultations at all stages, as well as resolving contradictions and complaints in a simple and clear language. “The main thing in the Standard is taking into account the own priorities of the indigenous peoples, which they determine by themselves and promote them using existing procedures, as well as the respect for culture, traditions, and peculiarities of their decision-making. Thus, the point of the document is to help establish a dialogue, find a balance of interests and obtain mutual benefits.”
The expert emphasized the All-Russian competitive educational program called ‘Indigenous Minorities. School of Public Diplomacy’ aimed at training the representatives of the indigenous minorities of the North to speak in various international organizations with the aim of protecting their own interests and the Russia’s interests in the Arctic. The program is under implementation by the Federal Agency for National Affairs, Moscow State Institute of International Relations of the Ministry of Foreign Affairs of the RF, and the Norilsk Nickel company.
As stated at the EEF, a future study planned by the Federal Agency for National Affairs and aimed at studying the best practices of Russian companies in the field of Corporate Social Responsibility and interaction with the indigenous peoples will help in improving the Standard. The results of the study will be presented at the forum Public-Private Partnership in the Sustainable Development of Indigenous Peoples to be held in early November. At this forum, the work on the formation and legislative consolidation of the Standard will continue, taking into account the results obtained.
