Project Implementation
The implementation of the project will help develop approaches to corporate social and environmental responsibility that are clear and accessible to the general public, while also highlighting the importance of constructive, well-reasoned dialogue.
A key advantage in achieving the project’s goals and objectives is the involvement of representatives from all three sectors—government, civil society, and business (extractive companies)—at every stage. This approach enables consensus-based decision-making, fosters open dialogue, and enhances overall engagement in solving the problem collectively.
Target Audience of the Project
The target audience includes initiative groups, civil society organizations, representatives of local self-government bodies (village, town councils, and amalgamated territorial communities) in areas where hydrocarbon extraction takes place, as well as the management of extractive companies.
Relevance of the Project
In recent years, an alarming trend has emerged: under the guise of stimulating the industry and attracting investment, artificial conditions are created for companies to receive windfall profits and divert funds before they even reach the state budget. This severely undermines the economy and worsens the environmental and socio-economic situation in extractive regions.
At the end of 2019, the Verkhovna Rada abolished the requirement for environmental impact assessments for Production Sharing Agreement projects and stripped regional councils of the right to approve the issuance of special permits. This, in turn, prevents the inclusion of requirements related to socio-economic development contributions and company registration at the extraction site.
Such legislative initiatives escalate conflict between extractive companies and local communities and fuel public outrage—often exploited by radical and pro-Russian groups.
The absence of a transparent, comprehensible, and economically justified approach to implementing social partnerships between communities and companies leads to accusations of bribery, corruption, and extortion, ultimately undermining all efforts to establish constructive dialogue.
Project Objectives
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Engage extractive companies in dialogue and in contributing to the development of extractive communities, considering the shortfall in rent payments for the use of subsoil resources (oil, natural gas, and gas condensate) to local budgets.
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Develop a framework for determining the scope of CSR contributions by companies toward community development and environmental protection.
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Promote best practices of responsible subsoil use and community partnership in the extractive sector in Kharkiv Oblast.
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Reduce the level of conflict surrounding gas extraction in Kharkiv Oblast.
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Draft and propose legislative amendments to ensure fair rent payments for subsoil use.
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Improve the culture of responsible subsoil use.
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Scale the experience of pilot communities to other extractive communities and regions.
