Sakhalin Indigenous Minorities Development Plan

Sakhalin Energy has been working with the indigenous peoples since its foundation in 1994. Since 2006, the Company has been implementing a partnership programme called the Sakhalin Indigenous Minorities Development Plan (SIMDP) — in collaboration with the Regional Council of authorised representatives of the Sakhalin North indigenous peoples and the Sakhalin Oblast Government.

Sakhalin indigenous peoples belong to four main ethnic groups: Nivkhs, Evenkis, Uilta and Nanais

The objectives of SIMDP are to:

  • improve the quality of life of the indigenous peoples of Sakhalin with the help of social development programmes suitable to the cultural characteristics of indigenous peoples;
  • promote the development of the potential of the indigenous peoples and their active participation in the implementation of the assistance plan, as well as the development and implementation of other economic, social, and cultural programmes;
  • assist the indigenous peoples in the preparation of the independent fund for sustainable development of the indigenous peoples; and
  • prevent or reduce the negative impact of the Company's activities on the indigenous peoples.

All decisions on the distrubution of funds should be taken by the representatives of the indigenous peoples elected from each district of their traditional habitation.

SIMDP is based on the international standards concerning indigenous peoples and including the principle of free, prior, and informed consent (FPIC). It was recorded in the UN Declaration on the Rights of Indigenous Peoples (2007) and is included in the new Performance Standard 7 on Indigenous Peoples of the International Finance Corporation (IFC). Sakhalin Energy has become the first Industrial company to apply this standard successfully when interacting with society.

One of the significant tools to support the trusted and transparent relationships with the indigenous peoples is the Grievance Procedure, which streamlines the process of receiving, registering, and resolving grievances related to the implementation of the Development Plan).

The Procedure was developed with the participation of the representatives of indigenous peoples on the basis of general principles of the Grievance Procedure adopted by Sakhalin Energy.

One of the key areas for support under the Plan - traditional economic activities

Annual Monitoring of the Implementation of the Development Plan provides an opportunity to assess its effectiveness and to determine the need for changes in the programme.

The programme's awards:
In 2007, International Finance Corporation (IFC) (a department of the World Bank Group for operations with private sector) included the experience of the development and implementation of the development Plan into its edition Stakeholders Engagement: a Guide of Successful Practices.

Choice of the interaction model used within the framework of the Development Plan is recommended for use by the state authorities of the Russian Federation constituent entities (subsequent to the results of hearings in the RF Federation Council in 2008).

In 2010 the SIMDP became a contest winner for the best social programme “Good Deed” in the nominated category of “Cultural Revival” at the All-Russian Festival of Social Programmes “CoOperation”.

2010 - The Sakhalin Indigenous Minorities Development Plan received the main award in the all-Russian Corporate Philanthropy Leaders contest.

In 2011 the UN Global Compact Network Russia, jointly with the RF Public Chamber and the Association of Indigenous Peoples of the North, held an international conference “UN Global Compact in Russia: Business and Indigenous People”. At this conference, Sakhalin Energy presented its experience of cooperation with indigenous minorities. As a result, the Company’s experience was included in the guidelines “Indigenous Peoples and Industrial Companies: Best Practices of Cooperation in the Russian Federation”.

At the 10th Annual Session of the UN Permanent Forum on Indigenous Issues (New York, USA 2011), the experience of tripartite cooperation under the SIMDP was approved as the best world approach for engagement.

The Sakhalin Indigenous Minorities Development Plan was included into the UN Global Compact International Yearbook 2011.

In 2014 the Plan became a winner in nomination “Social projects” of “KonTEKst” contest hold by the Ministry of Energy of Russian Federation.

The Company also implements other projects aimed at preserving the culture and the development of the potential of indigenous peoples. Detailed information can be found on the website