IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor. The following potential environment, health and safety impacts of the project were analyzed. - Hazardous materials management; - Emergency preparedness and response; - Railway wagon maintenance waste management; - Employee health and safety; and - Timber shipping and sustainable forestry.

Within the limits of its current responsibilities as a railway operator, Eurosibtrans has presented plans to address these issues to ensure that they comply with applicable Russian laws and regulations, including the technical standards of the Ministry of Transport and the All Russia Railway Research Institute (VNIIZHT), environmental and health and safety laws and rules and World Bank requirements. In the event that the regulatory environment in the Russian railway sector and nature of the operations of the various participants in the sector change, requiring Eurosibtrans to assume additional environmental responsibilities, Eurosibtrans will develop and implement appropriate environment, health and safety management systems (including hazardous materials management programs and transportation plans) consistent with IFC environmental, health and safety guidelines and necessary to manage the additional legal and environmental liabilities that might arise from its activities. The detail about how these issues are addressed by the company and other responsible parties is summarized in the paragraphs that follow. - Hazardous Materials Management: The company transports loads of certain chemical commodities defined by Russian rules (Rules of Railway Transportation of Dangerous Cargoes, 1997) and the UN (United Nations, Transport of Dangerous Goods – Model Regulations. 12th Revised Edition. 2001) as dangerous. These include propane, carbon dioxide gas, compressed oxygen, liquid detergents, and paints and varnishes. Transportation of materials such as these present risks during loading and loading activities, where overfilling and spillage are the common hazards. Hazards also arise from the risk of accidents during transport that might lead to more acute events such as fires and explosions. Transportation procedures are generally consistent with the UN Model Regulations. Freight wagons are designed to meet appropriate RZhD technical standards for axel loading, dimensions, braking systems, and overall design. In addition, wagons carrying containers of dangerous cargoes display labels describing the dangerous properties of the goods being carried (hazardous index and UN hazardous class) to allow proper handling by transport personnel or emergency services in the event of an accident. Moreover, Russian regulations require wagons to undergo regular, frequent maintenance and repair in which the entire wagon is disassembled and worn components are replaced or brought to standard. As an operator, Eurosibtrans liability is limited to movement management. Liability for environmental damages related to accidental releases of such materials falls with RZhD or other carriers (e.g., road transport companies involved in deliveries and cargo handling in freight forwarding activities), and the owner/shipper of the cargo during loading and unloading. These parties assume and retain the responsibility for the safe handling and transport of commodities moved under their authority. Even so, the company applies accident prevention procedures during handling and transportation of dangerous substances, including ensuring that railway transport rules are followed, that shipments are properly placarded and recorded according to government regulations. - Emergency Preparedness and Response: Again, owing to its limited responsibility as a freight forwarder and operator, Eurosibtrans currently depends on government authorities for accident planning and response. In this capacity, the authorities provides emergency planning and response coordination, emergency response equipment, and appropriate training of its employees. In the event of an accident, Eurosibtrans personnel or on-the-scene RZHD staff immediately notify RZHD emergency management who in turn inform the impacted community in coordination with the Ministry of Emergency Situations (MChS). At the same time, RZHD and MChS damage assessment and response teams quickly mobilize and respond to the damage and to eliminate risks posed within a matter of hours. RZHD’ procedures also include extensive incident investigation protocols that establish the cause of the accident, impose penalties, if applicable, and identify the steps needed to prevent reoccurrence. To date, Eurosibtrans has not been associated with any train derailments or accidents. In addition, there have been no leaks or spills associated with failures of wagon components while in service. - Railway Wagon Maintenance Waste Management: Eurosibtrans railway wagons are repaired and maintained under contract at RZhD workshops and depots. Going forward, should the company develop and establish their own maintenance facilities, all pollution control and waste management activities will be conducted in compliance with applicable and relevant IFC pollution prevention policies and guidelines. - Employee Health and Safety: As a freight forwarder and operator, Eurosibtrans currently has no employees involved in workplaces where occupational health and safety pose potentially harmful or dangerous work conditions. In those limited instances where these conditions are present, such activities are conducted by employees of responsible consignees, shippers and government authorities, as appropriate. These parties are responsible for providing the necessary programs and protections for employees in their respective workplaces. In some cases, Eurosibtrans employees observe and inspect cargo loading and unloading activities to ensure consignees follow appropriate Russian labor codes, including conditions for keeping cargo safe during handling and transport. Notwithstanding, all Eurosibtrans employees receive labor safety, accident prevention and fire safety training. - Timber Shipping and Sustainable Forestry: Eurosibtrans carries raw wood logs harvested in Russia to wood products manufacturers in Finland. Key consignors for whom Eurosibtrans provides transport services have active sustainable forestry programs. These companies ensure that wood procured and imported from their Russian suppliers have the necessary chain of custody certificates for the promotion of sustainable forestry management (PEFC). Under the terms of the purchasing contracts signed by the consignors and their Russian suppliers, the origins of the wood must always be indicated. The companies stop deliveries if they find that wood originates from conservation areas or if wood has been illegally logged. Going forward, Eurosibtrans is committed to encouraging their other customers to adopt similar sustainable forest management practices and strengthening the transparency of the wood supply chain.

This ERS contains the full environmental and social documentation prepared for the project.

Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines.

IFC will evaluate the project's compliance with the applicable environmental requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project. Periodic site supervision visits will also be conducted.