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Reputational risk
The reputational risks for the extractives industry in Russia are enormous. In
2013, Greenpeace activists were arrested for protesting against Arctic oil drilling,
which sparked international media attention and public support. Ongoing
severe environmental problems caused by the Russian oil industry continue to
threaten its reputation:
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Each year, 200 million tonnes of water are pumped out of Russian coal
mines. A 2011 report estimates wastewater pollutant discharges at over
0.5 million cubic meters a year for the Kemerovo region, which lies near
Kuzbass. According to the report, the region’s water quality in the rivers
flowing through industrial areas is “polluted,” “very polluted,” and in certain
cases, “extremely polluted” 70 .
Tailings contain large
quantities of acid,
which infiltrate waterways
and aquifers.
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Tailings dumps (the materials left over after separating the valuable fraction
from the uneconomic fraction of an ore) contain large quantities of acid,
which infiltrate waterways and aquifers, becoming another source of pollution
contaminating drinking water supplies. Acid rains also cause leaching of
metals from the tailings, rock refuse, clinker, with metals making their way
into rivers, lakes, and seas 71 .
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Extreme weather conditions coupled with a lack of maintenance have
resulted in slow but constant seepage of oil from pipeline ruptures. In oil
development areas, spilled oil forms toxic lakes, penetrates the soil, and
seeps into the groundwater 72 . According to Greenpeace, 5 million tonnes of
crude oil are spilled in Russian oil fields every year.
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Every year, rivers transport several hundred thousand tonnes of petroleum
products. In the groundwater and drinking water of oil and gas fields in
Western Siberia, concentrations of petroleum hydrocarbons, phenols, and
other pollutants associated with oil and gas production reach concentrations
as high as 10 to 35 times the maximum allowable concentration (MACs) 73 .
Russia is the biggest
exporter of oil, gas and
coal to Germany. Oil
and gas companies
in Russia mainly face
reputational water
risks due to oil spills or
other environmental
accidents.
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