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Putin signed law binding oil producers to eliminate onshore oil spills

July 14/ 09:21

Moscow. Russian President Vladimir Putin signed the law aimed at prevention and response to crude oil and petroleum product spills. The document binds companies dealing with onshore oil production to have a financial security mechanism to cure contingencies. The document was posted on the official web portal of legal information on Monday and would be effective from January 1 of the next year.

According to the law, companies, whose operations are related to oil products, shall have plans for a contingency similar to the accident at the CHPP-3 power plant in Norilsk and have sufficient financial security for accident relief. The document provides that companies dealing with oil products must develop and get an approval for the oil spill prevention and response plans by January 1, 2024. The plans will be approved subject to available statement of operator’s readiness to contain and respond to consequences of oil and oil product spills, issued according to results of comprehensive drills, and by agreement with the Russian environmental watchdog Rosprirodnadzor.

The law also binds oil producers to have the financial security to implement activities stipulated by oil spill response plans and indicates specific mechanisms of such financial support, ask TASS. This can be a bank guarantee, an insurance contract, a document evidencing that an operator or several operators set up an emergency fund needed to perform relief activities or a letter of guarantee from a federal executive authority for payment of the required amount.

The document also sets forth the procedure of compulsory actions of companies in case of spills. The companies should perform reclamation or other remedial work after the spill response and fully reimburse damages to environment, life and health of people, corporate property, and costs of engaging extra resources of the united state system of emergency prevention and response.

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