Between Soviet Legacy and Corporate Social Responsibility: Emerging Benefit Sharing Frameworks in the Irkutsk Oil Region, Russia

Abstract

Benefit sharing arrangements are a central element of the interactions between oil companies and local communities in resource regions of the Arctic and sub-Arctic. This paper focused on developing a systematic understanding and typology of benefit sharing arrangements within the oil sector in the Russian Arctic and sub-Arctic, using the Irkutsk Oil Region as a case study. It provided a critical analysis of prevalent arrangements and practices (modes and mechanisms of benefit sharing), as well as examined institutional and social underpinnings of these benefit sharing frameworks. Qualitative methodology with semi-structured interviews were used. The paper demonstrated that sub-Arctic communities are not equally benefiting from oil and gas extraction. Despite a considerable variety of existing arrangements revealed by this study, no benefit sharing mode or mechanism prevalent today ensures sustainable development of local communities. This may stem from the incompatibility between post-Soviet legacies, corporate social responsibility principles, and local institutional frameworks. Although focused on a particular region, this research was indicative of general benefit sharing patterns in modern Russia and beyond.