EU Strikes a Deal on Transparency Rules for Oil, Gas and Mining Industry

Issue: Dodd-Frank
Country: Europe
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A Major Blow to Big Oil and API’s Push for Secrecy

NEW YORK, April 9, 2013—The European Union today took a decisive step to counter corruption in global oil, gas and mining sectors, coming to agreement on transparency legislation under negotiation since 2011.

This evening in Brussels, representatives from the European Parliament and European Council agreed to include strong rules governing disclosure of extractive company payments to resource-rich countries. The rules will be incorporated in the EU’s Accounting and Transparency Directives, which are expected to be approved in June. Modeled after the ‘Cardin-Lugar’ amendment of the 2010 U.S. Dodd-Frank Act, the EU rules will require European public and private companies to publish what they pay governments around the world for natural resources, country-by-country and project-by-project. 

"Today marks a landmark in ending secrecy in the oil, gas and mining industry,” said Daniel Kaufmann, president of Revenue Watch. “We commend the EU for choosing rule of law over corruption, and transparency over opacity. Citizens from Iraq to Indonesia will be able to see how much money their governments receive for their natural resources and question how this money is used.”

Despite intense pressure from Big Oil, European member states and lawmakers have made a critical decision to push for a strong standard that will not allow for exemptions, requires reporting of all payments over €100,000, and clearly defines extractive sector "projects” for the purposes of company reporting. 

“With the world’s largest markets supporting payment requirements, we are that much closer to making transparency the global norm, and the focus should now be on expanding this norm to other markets, through action at the G-8 and by relevant states such as Canada and Australia,” said Kaufmann. “Now, oil companies like Shell and BP will have to report their payments, making their support for the American Petroleum Institute’s (API) lawsuit a moot point. API needs to take stock of Europe’s clear endorsement of U.S. law and abandon its lawsuit without delay.”

For more information, please contact:

Carolyn Bielfeldt
Communications Coordinator
212.547.6961 | cbielfeldt@revenuewatch.org