Sakhalin Energy Hosts Dialogue in Preparing Sustainable Development Report

Preliminary data suggest that Sakhalin Energy’s payments made to Russian Federation budgets under the Sakhalin-2 project from January to September 2019 total to about USD 3.1 billion, including approximately USD 633 million that went to the Sakhalin Oblast budget.

This information was provided at a meeting arranged as a dialogue between Sakhalin Energy and representatives of the regional authorities, businesses, the Sakhalin North indigenous minority peoples, NGOs and not-for-profit organizations, educational and cultural institutions, etc. A total of USD 28.2 billion has been paid to RF budgets since the start of the Project, wherein approximately USD 10.2 billion—to the Sakhalin Oblast budget.

The event was among the activities involved in the preparation of Sakhalin Energy’s 2019 Sustainable Development Report. The contents of the Report are being defined in close engagement with the Stakeholders, as has been the case with the previous reports.

The meeting agenda was not limited to the Company’s performance update. Several other topics have been extensively covered: Russian Content and import substitution, the Sakhalin Industrial Park project, HSE, social investments, etc.

“Despite the fact that Sakhalin-2 is a project run by an international consortium, we are proud to note that 95% of the Company’s staff are Russian nationals, 56% of whom come fr om Sakhalin Oblast,” said Alexander Morogov, Head of Sakhalin Energy’s Recruitment Subdivision. He added that the figure kept growing fr om year to year.


A special focus was on the Company’s contribution to achieving the UN Sustainable Development Goals (SDGs) that are of utmost importance to both the Company and Sakhalin Oblast.

“The SDGs are part of the Global Agenda. They are addressed not only to governments but also to other participants of the Sustainable Development process worldwide: businesses, the society at large, and all individuals,” said Natalia Gonchar, Head of Information Support & Media Relations and Sakhalin Energy’s press secretary, “In 2020, Russia is going to present its first Voluntary National Review of the Sustainable Development Goals which will cover both the government initiatives with the results thereof and the Russian business practices.”

At the end of the event, the participants asked the Company questions regarding the various aspects of environmental protection and recommended, among other things, that more information be provided about the local contractors engaged in the Sakhalin-2 activities.


Antonina Nachetkina, a representative of the Sakhalin North indigenous minority peoples, reminded of the recent Sakhalin Oil & Gas International Conference where the interaction between businesses and indigenous ethnic groups had been discussed for the first time in its history. The public figure emphasized that representatives of the region’s indigenous minorities should participate in such events.


Regular stakeholder meetings are held twice a year. They testify to Sakhalin Energy’s aspiration for an open and honest dialogue with the community. The forum gave the meeting’s participants an opportunity to share best practices and to come up with ideas and suggestions as to the relevant issues and topics to be put on the agenda for Sakhalin Energy’s community reporting.

The second dialogue is scheduled for February 2020. The main takeaways from both meetings will be incorporated into the Company’s 2019 Sustainable Development Report.


1 November 2019