Press release - Save the Caspian Sea movement demands lifting the veil of confidentiality from Caspian oil agreements
31 March 2025
Preliminary hearings on a lawsuit filed in mid-February of this year by Vadim Ni, founder of Save the Caspian Sea campaign, against the Ministry of Energy of the Republic of Kazakhstan were held today. The lawsuit seeks public disclosure of production sharing agreements (PSAs) and a concession agreement for the Karachaganak, Kashagan and Tengiz oil and gas fields. Its goal is to achieve accountability and transparency of oil and gas companies through public access to these so far classified documents.
“We are taking the Ministry of Energy to court for violating our fundamental right - the right to access information on issues directly related to the state of our environment. This contradicts not only international law but also the Constitution. In our country, the citizens are the true owners of the land and its resources. We have the right to know about the conditions under which international oil and gas corporations operate in our country, and we will fight for it," emphasized Vadim Ni, head of the Save the Caspian Sea campaign.
However, at this point, the court ruled that the case had no standing. In response, Vadim Ni declared: "Despite the fact that the preliminary outcome is not in our favour. I know that the law is on my side and I remain optimistic. I am not planning to give up and am going to appeal the decision. I am confident that this matter can and should be resolved now."
This lawsuit could not be more timely. Just this month, Bloomberg reported that the major oil companies developing the Kashagan field had achieved two favourable rulings in the arbitration process with Kazakhstan on deferring environmental fines and the possibility of a tax audit.
First, it was decided that until the end of the judicial process, the state would not be entitled to a $5 billion fine for the storage of sulphur. And second, they managed to ensure the Kazakh tax authorities were not allowed to audit the state’s share of oil production. They claim that based on the agreement this right can only be exercised by a representative of the Ministry of Energy.
Although these decisions are not final, for the time being they still exempt the companies from administrative liability and tax audits. Meanwhile, the Caspian Sea is still shoaling, animals are dying and local communities are suffering from the consequences of field accidents.
"These, however small, victories of oil companies in arbitration against the Government of Kazakhstan once again prove who is benefiting from the existing secretive status of production sharing agreements. In order to achieve environmental responsibility, transparency and accountability from international corporations benefiting from the Caspian Sea's natural resources, those agreements must be made available for public scrutiny," said Vadim Ni.
About the Movement:
The global movement “Save the Caspian Sea” fights to preserve the unique ecosystem of the Caspian Sea by demanding accountability, transparency, and environmental responsibility from corporations. The movement joins forces with environmental organisations, local communities, governments and representatives of various industries to address pressing environmental issues in the Caspian Sea, including pollution and habitat loss.
Media information:
For interview requests and for more information, please contact media@savethecaspiansea.com
31 March 2025
Preliminary hearings on a lawsuit filed in mid-February of this year by Vadim Ni, founder of Save the Caspian Sea campaign, against the Ministry of Energy of the Republic of Kazakhstan were held today. The lawsuit seeks public disclosure of production sharing agreements (PSAs) and a concession agreement for the Karachaganak, Kashagan and Tengiz oil and gas fields. Its goal is to achieve accountability and transparency of oil and gas companies through public access to these so far classified documents.
“We are taking the Ministry of Energy to court for violating our fundamental right - the right to access information on issues directly related to the state of our environment. This contradicts not only international law but also the Constitution. In our country, the citizens are the true owners of the land and its resources. We have the right to know about the conditions under which international oil and gas corporations operate in our country, and we will fight for it," emphasized Vadim Ni, head of the Save the Caspian Sea campaign.
However, at this point, the court ruled that the case had no standing. In response, Vadim Ni declared: "Despite the fact that the preliminary outcome is not in our favour. I know that the law is on my side and I remain optimistic. I am not planning to give up and am going to appeal the decision. I am confident that this matter can and should be resolved now."
This lawsuit could not be more timely. Just this month, Bloomberg reported that the major oil companies developing the Kashagan field had achieved two favourable rulings in the arbitration process with Kazakhstan on deferring environmental fines and the possibility of a tax audit.
First, it was decided that until the end of the judicial process, the state would not be entitled to a $5 billion fine for the storage of sulphur. And second, they managed to ensure the Kazakh tax authorities were not allowed to audit the state’s share of oil production. They claim that based on the agreement this right can only be exercised by a representative of the Ministry of Energy.
Although these decisions are not final, for the time being they still exempt the companies from administrative liability and tax audits. Meanwhile, the Caspian Sea is still shoaling, animals are dying and local communities are suffering from the consequences of field accidents.
"These, however small, victories of oil companies in arbitration against the Government of Kazakhstan once again prove who is benefiting from the existing secretive status of production sharing agreements. In order to achieve environmental responsibility, transparency and accountability from international corporations benefiting from the Caspian Sea's natural resources, those agreements must be made available for public scrutiny," said Vadim Ni.
About the Movement:
The global movement “Save the Caspian Sea” fights to preserve the unique ecosystem of the Caspian Sea by demanding accountability, transparency, and environmental responsibility from corporations. The movement joins forces with environmental organisations, local communities, governments and representatives of various industries to address pressing environmental issues in the Caspian Sea, including pollution and habitat loss.
Media information:
For interview requests and for more information, please contact media@savethecaspiansea.com
