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R 260731Z APR 07
FM AMEMBASSY MOSCOW
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RUEHYG/AMCONSUL YEKATERINBURG 2395
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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