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Russia, EU Still Divided On Trans-Siberian Overflight Charges

The EU's decision to cancel the summit in Moscow shows that, in spite of loud declarations of its desire for equitable and mutually beneficial cooperation with Moscow, Brussels wants such cooperation to resemble a one-way street.
by Sergei Sokolov
Moscow (RIA Novosti) Nov 19, 2007
The Russia-EU aviation summit, slated for November 16-17 in Moscow, has been "postponed for an indefinite time" because of Moscow's reluctance to sign an agreement on trans-Siberian overflights. On November 8, the Russian Transport Ministry said the summit had been called off indefinitely. According to both Russian and European media, the European Commission, which had co-organized the summit, wants to punish Moscow for its intractability.

Brussels has done everything possible to turn the issue of trans-Siberian overflight fees into a serious irritant in bilateral relations. The EU is regularly raising this purely technical issue at the highest level along with calls on Moscow to make concessions in the spheres of democracy, energy, human rights and Polish meat imports. It appears that EU Trade Commissioner Peter Mandelson cannot help over reacting at the mention of trans-Siberian overflight tax.

By deciding to boycott the summit, the EU has lost a unique opportunity to discuss an important issue with senior Russian Government officials and aircraft industry managers.

Over the last five years, trans-Siberian overflights have become the subject of loud statements on both sides. Inevitably the issue has also become clouded by myths. Before addressing the issue, it is worth trying to clear some of these up.

Myth one. The Russian Government is charging overflight tax for the use of national air space and in violation of the 1944 Chicago Convention on International Civil Aviation. This is not true. In reality, this would imply mutual settlements between economic agents - Russian and EU air carriers. As Russian Government receives no money, it does not violate the Convention.

Myth two. Trans-Siberian overflight fees run counter to standard international practice and Russia's international commitments. This is not true either. Airlines all over the world sign commercial contracts in accordance with bilateral inter-governmental air-traffic agreements.

Myth three. Russia is forcing the EU to use trans-Siberian routes and pay money for that. However, the system of trans-Siberian overflights was established in the 1960s and the 1970s in response to European airlines' persistent requests for a short cut to Asia. Nobody is preventing EU flag carriers from using other routes, including those outside Russia.

Myth four. Moscow pledged to abolish trans-Siberian overflight fees three years ago. Although this false EU assertion has now become quite popular, the truth is that the Russian Government and former Economic Development and Trade Minister German Gref unilaterally pledged to introduce a transparent system of trans-Siberian charges by 2013, to more accurately reflect real expenses and prevent discrimination among foreign air carriers. But Russia did not promise to completely abolish such fees.

Myth five. Trans-Siberian overflight charges hinder air traffic between Europe and Asia. In reality, EU flag carriers annually operate hundreds of thousands of flights along this shortest, most convenient and economical route. From January to September 2007, the number increased by 14%.

Myth six. Over-flight charges violate the rules of the WTO, and will prevent Russia's joining this organization. The European Commission's Director General for Trade is spreading this lie. But the truth is that the WTO does not regulate air-traffic issues. Furthermore the problem of Russia's accession to the WTO has been created by Peter Mandelson and his colleagues in spite of the fact that the May 2004 Russia-EU protocol on bilateral WTO-accession terms says nothing about streamlining trans-Siberian overflight tax.

Myth seven. President Vladimir Putin has promised to the EU that Moscow will abolish trans-Siberian overflight fees. The Russian leader has never made any such promises, not even during the recent Russia-EU summit in Portugal.

Myth eight. Trans-Siberian overflight fees hinder expanded bilateral cooperation in the sphere of civil aviation. Nonetheless, such cooperation continues to develop in spite of the obstacles created by Brussels. Russian companies join international alliances involving European carriers and discuss major asset-exchange deals. Moreover, national aircraft industries discuss additional cooperation projects.

The May 2004 Russia-EU protocol on the terms of Moscow's WTO accession called for discussing the parameters and deadlines for streamlining trans-Siberian overflight charge as part of bilateral talks to conclude a large-scale air-traffic agreement. However, the European Commission has not upheld its part of this gentlemen's agreement, failing to obtain an EU mandate for holding such talks.

Russian experts remain divided over an agreement similar to the EU-U.S. "open skies" treaty. Many believe that Russian national carriers are not yet ready to compete with EU airlines on global markets. Nevertheless, talks on a Russia-EU air-traffic agreement could lead to a mutually acceptable compromise between the EU, the European Commission and Russia's civil aviation and aircraft industry.

The EU's decision to cancel the summit in Moscow shows that, in spite of loud declarations of its desire for equitable and mutually beneficial cooperation with Moscow, Brussels wants such cooperation to resemble a one-way street.

Sergei Sokolov is an adviser to the Chairman of the Council on Foreign and Defense Policy.

The opinions expressed in this article are the author's and do not necessarily represent those of RIA Novosti.

Source: RIA Novosti

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OPEC Promises Expensive Oil
Moscow (RIA Novosti) Nov 19, 2007
On November 17-18, Saudi Arabia will play host to the third summit in the 47 long-year history of the omnipotent oil cartel - the Organization of the Petroleum Exporting Countries (OPEC). On the eve of the summit, OPEC has been subjected to a massive attack led by oil consumers, who demand that it should immediately increase oil production. The price of oil may surpass the record of $100 per barrel any day, but it is already clear that the oil cartel is not going to make any concessions to oil buyers this weekend.







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