EU and Russia to Phase out Trans-Siberian Fees

An agreement was reached this week between the EU Council and Russian authorities for EU air carriers to make further use of Trans-Siberian routes, which will improve their competitiveness on routes to destinations in Asia. The arrangement abolishes the obligation for EU carriers to enter into commercial agreements with, and pay fees to, Russian air carriers for the use of those routes as from January 1, 2014 at the latest, settling a long-standing point of contention between the EU and Russia.

Any charges to be paid to the Russian authorities will have to be cost-related and transparent and must not lead to discrimination between foreign airlines, according to the Council. The ‘agreed principles’ contract will come into force on the first day of the month following the date on which the decision on the accession of Russia to the World Trade Organisation is taken, which is expected to be in December this year.

Once effective, newly operated overflight frequencies will “not require prior conclusion of commercial agreements and corresponding payments,” while payments resulting from existing overflight arrangements “may not exceed the amount paid in 2006,” says the Council. In addition, six months after its introduction, bilateral arrangements between EU member states and Russia are to be modified so as to ensure that no special commercial agreement or payment is needed for code sharing by EU carriers and for their right not to stop in Russian territory on trans-Siberian routes.