CEDHA Press Release, Oslo June 14th

OSLO. June 14th, 2006.

Legal represenatives of stakeholders in the controversial Uruguayan papermill investment, met today in Oslo, Norway, with representatives from NORDEA, who may provide financial support to Botnia of Finland, one of the controversial mills in construction on the Argentine-Uruguayan border.

Romina Picolotti (in Oslo to receive the Sophie Prize 2006) and Daniel Taillant, CEDHA's Executive Director, visited Nordea's offices in Oslo, and requested that Nordea respond to CEDHA's Human Rights Compliance Complaint, as well as to numerous other complaints presented against Nordea, against the pulp mills and its various supporters, for their complicity in the international human rights and environmental law violations occuring and that will occur due to the pulp mill projects.

Nordea has been tightly silent on their involvement in the project, and refused to provide any information to CEDHA or the public on how it is handling international accusations against it, and against Botnia, whether it is conducting an investigation, or wether it has taken any steps to address the serious accusations against Botnia, ENCE, and the IFC handling of the projects. Nordea simply replied that it could not reveal confidential client information, and refused to commment on ANY of the issues raised by CEDHA during the meeting. Nordea claimed it was only responsible for providing information to the court, in this case, and refused to comment as to whether or not Nordea was accountable to local stakeholders, to its shareholders or to the general public in terms of its involvement in the controversial Botnia project.

Just a few days ago, the Financial Times, ran an 8 page section on Responsible Banking, suggesting the Uruguay pulp mill case, is a test case for international bank responsibility, and that the world was looking at the evolution of the Equator Principles as the benchmark for responsible banking. ING Group of Netherlands, withdrew US¤480 million pledged support to Botina , folling an Equator Principles Compliance Complaint submitted by CEDHA. Shortly afterwards, Calyon of France, lost a bid to be named Sustainable Bank of the Year, purportedly due to its public announcement that it would serve as financial arranger for Botnia.

While Nordea refused to provide any information to CEDHA on how it is addressing it corporate image risk as related to this project, Nordea DID claim that they would 'would follow laws and procedures of order of society' and that they were looking closely at the ICJ trial at the Hague and that Nordea would comply with international law. Court proceedings at the ICJ on this case Argentina ended the first round a few days ealier, as Argentina and Uruguay presented oral arguments clarifying each party's position.

The Nordea represenatives seemed surprised when CEDHA clarified that NO judgement would be reached by the ICJ in the immediate future as to possible violations of international law by the mill projects, and that the court decision awaited in under 60 days, will ONLY be on provisional measures regarding Argentina's request that Uruguay order a halt of construction of the mills until the matter could be resolved. A final decision on violations of international law could take several years.

CEDHA asked Nordea explicitly if this meant that Nordea would have to wait until a final court decision (on violations to international law) before proceeding to a decision on financing Botnia. Nordea refused to answer.

For more information:

Daniel Taillant

jdtaillant@cedha.org.ar

tel 0031 61 65 77 254