'Defeat for Justice': Ecuador to Pay Amazon-Polluting Chevron $220 Million

A US advocacy group, American human rights lawyer Steven Donziger, and the group in Ecuador behind a historic legal battle against Chevron over its dumping of toxic waste in the Amazon rainforest are condemning the Ecuadorian government's plans to pay the oil giant hundreds of millions of dollars due to an arbitration ruling.

In response to the legal fight in Ecuador that led to a $9.5 billion judgment against Chevron—which bought Texaco—the fossil fuel company turned to the investor-state dispute settlement (ISDS) system, suing the South American country in the Hague-based Permanent Court of Arbitration. As part of the latter case, Ecuadorian Attorney General Diana Salazar Méndez's office announced Monday that the government would pay the US company only around $220 million, rather than the over $3 billion Chevron sought.

While Chevron said in a statement that it was "pleased with the resolution of this matter" and claimed the decision "strengthened the rule of law globally," and Salazar Méndez's office celebrated the dramatically lower figure, and the Union of Peoples Affected by Chevron-Texaco (UDAPT)—the group that began the case against oil company in 1993—pushed back against the government's framing of the reduction "as if it was a success and an economic achievement."

"The reality is it is a defeat for justice," UDAPT argued in a Tuesday statement. "For 32 years, UDAPT has documented pollution, environmental crime, and lives broken by Chevron, proving what should be obvious: Communities have not recovered, health has not been restored, clean water has not returned, and the territories that sustain life remain contaminated. A debt is not owed to Chevron. A debt is owed to the Amazonian families still waiting for truth, justice, and full reparation."

Amazon Watch deputy director Paul Paz y Miño similarly said Tuesday that "this illegitimate arbitration process is nothing more than Chevron abusing the law to escape accountability for one of the worst oil disasters in history."

"Ecuador's courts ruled correctly and based largely on Chevron's own evidence, that Chevron deliberately poisoned Indigenous and rural communities, leaving behind a mass cancer zone in the Amazon," the campaigner continued. "Adding insult to injury, the idea that Ecuador's people should now pay a US oil company that admitted to deliberate pollution is the epitome of environmental racism."

Ecuadorian President Daniel Noboa "must not honor this ISDS award, and the international community must stand behind the victims of Chevron's crimes and demand that the company clean up Ecuador once and for all," Paz y Miño added. "Amazon Watch stands with the affected Indigenous peoples and communities of the Ecuadorian Amazon. We urge President Noboa to reject this illegitimate award, disclose any negotiations with Chevron, and enforce Ecuadorian law by ensuring Chevron pays its debt to those it poisoned."

Donziger—who was detained in the United States for nearly 1,000 days after Chevron went after him in the American legal system for representing Big Oil's victims in Ecuador—was also sharply critical, saying Tuesday that "the decision by a so-called private corporate arbitration panel that claims to absolve Chevron of its massive pollution liability in Ecuador has no legitimacy and does not affect the historic $9.5 billion damages judgment won by Amazonian communities."

"That judgment still stands as the definitive public court ruling in the case," he said. "The private arbitral panel has no authority over the six public appellate courts, including the Supreme Courts of Ecuador and Canada, that issued unanimous decisions against Chevron and confirmed the extensive evidence that the company devastated local communities by deliberately dumping billions of gallons of cancer-causing oil waste into rivers and streams used by thousands of people for drinking, bathing, and fishing."

"I also strongly condemn President Daniel Noboa for his plans to betray his own people by agreeing to send $220 million from the public treasury to Chevron, a company that owes Ecuador billions under multiple court orders for poisoning vulnerable Indigenous peoples with toxic oil waste," Donziger added. "Noboa would effectively grant Chevron a taxpayer-funded bailout financed by the same citizens who remain victims of the company's pollution. This would be an outrageous dereliction of duty and a violation of his oath of office, warranting removal."