Peru raps Pluspetrol following environmental protests

Significance

The government has ordered Pluspetrol, which owns and operates key oil and gas concessions, to abandon its exploratory activities in the central jungle region, following protests during which one student was killed and at least 32 people injured. The conflict typifies growing organised resistance throughout the Andean region by indigenous and other groups to the presence of extractive industries.

Impacts

• Pluspetrol may lodge a complaint against Peru for breach of contract.
• Other communities may take this as their cue to lodge protests against extractive industries.
• The government will be criticised by the business community for having apparently succumbed to popular pressure.