Ecuador’s government and indigenous leaders signed an agreement on Friday to declare a temporary moratorium on the development of 15 oil blocks and suspend new mining contracts until a law on prior community consultations.
These actions are the most important step so far to implement the agreements that ended more than two weeks of anti-government protests in June this year.
President Guillermo Lasso, a former conservative banker whose government had its viability tested by the protests, opened a 90-day dialogue with indigenous leaders from three groups in July to discuss the details of the accords.
The demonstrations left at least eight dead and severely affected the oil industry. The protests forced an immediate cut in gasoline and diesel prices, fertilizer subsidies and other measures that, according to the Government, will cost 600 million dollars.
The moratorium will not affect the South American nation’s crude production as it will apply to oil blocks, located in the Amazonian provinces of Pastaza and Morona Santiago, where no exploration and exploitation activities have been carried out, according to the authorities.
The measure will be in force for at least 12 months or until the law of prior, free and informed consultation is in place, with contributions from indigenous leaders.
In the mining sector, the Government promised to suspend the delivery of mining titles and environmental licenses for the start of new activities in the sector until the necessary regulations are in place.
“We have had agreements and also disagreementsbut that is the dialogue,” Energy and Mines Minister Xavier Vera told reporters. “The tables are working, we are listening.”
The indigenous groups demanded a moratorium on the expansion of oil activities in environmentally sensitive areas and near their territories, in addition to definitively suspending the granting of new areas for concession to the private sector. Disagreements between the parties were also included in the document.
Lasso took office in May last year promising to increase oil production and the mining sector to shore up the country’s ailing finances and create jobs.
Discussions on price ceilings for dozens of goods and other issues will also wrap up on Friday, while negotiations on labor reform, higher education and security begin Monday and run through mid-October.
