An Ecuadorean court has ruled that US oil giant Chevron should pay at least US$8.6 billion to Amazonian communities to help combat environmental damages caused by oil drilling. Both sides say they plan to appeal the court’s decision in coming week.
According to the 14 February provincial court ruling, the massive fine will pay for compensatory damages related to polluting the soil and water in the Amazon River basin as well as causing health problems among locals. In addition to the US$8.6 billion, Chevron must also pay a further 10 percent of the compensatory damages to the Amazon Defense Coalition, an umbrella organisation representing Ecuadorean communities in the case. Furthermore, the oil company must issue a public apology within 15 days of the decision or face a doubling of the damages fee.
The court has allotted over US$5 billion of the compensatory charges to repair soil damage, while the remaining funds will be spent on healthcare for those affected.
Read more here: ICTSD • Chevron to pay Billions in Damages, Ecuadorian Court Rules.