07MOSCOW2189, SCENESETTER FOR RUSSIA CIVAIR NEGOTIATIONS

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Reference ID Created Released Classification Origin
07MOSCOW2189 2007-05-11 12:50 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXYZ0035
OO RUEHWEB

DE RUEHMO #2189/01 1311250
ZNY CCCCC ZZH
O 111250Z MAY 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0141
RULSDMK/DEPT OF TRANSPORTATION WASHDC IMMEDIATE
INFO RUCPDOC/USDOC WASHDC PRIORITY

C O N F I D E N T I A L MOSCOW 002189 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EEB BYERLY AND COLEMAN, 
EUR/RUS FOR WARLICK AND HOLMAN 
USDOT FOR STREET AND HATLEY 
USDOC FOR 4321/ITA/MAC/EUR/RISA BROUGHER AND BEADLE 
USDOC FOR 3004/CS/ADVOCACY/BLOOM 
 
E.O. 12958: DECL: 05/10/2017 
TAGS: EAIR ECON PREL RS
SUBJECT: SCENESETTER FOR RUSSIA CIVAIR NEGOTIATIONS 
 
Classified By: Econ MC Quanrud for Reasons 1.4 B and D. 
 
1. (C) Summary.  This cable lays out some key U.S.-Russian 
bilateral aviation issues in preparation for the bilateral 
Civilian-Aviation Negotiations May 16-17 in Moscow.  The 
Russians have told us they are preparing draft updates to the 
six annexes to our agreement, which they propose to use as 
the basis for the talks.  However, the promised drafts are 
not yet ready, and it is entirely likely they will not be 
ready before May 16.  We expect codesharing, new U.S. 
codeshare destinations, and trans-Pacific flights to be 
raised in this context.  We also anticipate that they will 
raise the issue of overflight fees for state flights, even 
though they are aware that these negotiations are not the 
appropriate forum.  Delta Airlines would like attention paid 
to the customs problems it continues to face at Sheremetyevo, 
while it and other carriers have suggested that we raise 
emergency procedures during these talks.  End summary. 
 
------------------------------ 
CURRENT RUSSIAN CIVAIR CLIMATE 
------------------------------ 
 
2. (C) The past year has been a very difficult one for 
Russian civil aviation.  After several large-scale accidents, 
President Putin put First Deputy Prime Minister Sergey Ivanov 
in charge of all civil aviation last summer.  Officials at 
GOR agencies with aviation portfolios (MOT, Federal Air 
Transport Authority, Federal Authority for Transportation 
Oversight, Federal Air Navigation Service) were concerned 
that Ivanov would institute a full-scale reorganization of 
their institutional structures and hunkered down.  Ivanov 
fired several department heads over the past eight months 
(leading to Loshchenov's promotion) and now everyone seems a 
little more at ease about moving forward. 
 
3. (C) Moreover, now more than ever, there is a universal 
sense that air safety needs to improve and that Russian 
airlines and airports need to modernize.  There have even 
been calls to elevate aviation to "National Priority Project" 
status, meaning it could be in line to receive large 
financial investments from the government.  The GOR plans 
unprecedented support for the 2007 MAKS Air Show in August, 
in part to improve its aviation image after this past year's 
disasters.  Minister of Transportation Igor Levitin's trip to 
Washington in January was part of GOR efforts to help boost 
aviation by building foreign ties.  Levitin has said publicly 
that Aeroflot is "the world's first impression of Russia" and 
promised to continue to advocate on behalf of the airline. 
 
---------------------------------- 
NAVIGATION FEES FOR STATE FLIGHTS: 
DESPITE OUR EFFORTS, GOR WILL ASK 
---------------------------------- 
 
4. (C) Though we have reiterated to the GOR that the question 
of air navigation fees for state aircraft is not an 
appropriate topic for this forum, the Russians will likely 
raise the issue and may use it as negotiating tactic.  This 
is particularly true given that the head of the Russian 
delegation for the state flights talks, Mikhail Parnev, is a 
member of this delegation.  Parnev had hoped for follow on 
talks with State and DOD in Washington in May and has called 
Post several times asking for dates when his delegation 
should travel.  (NOTE: Parnev,s subordinate, Sergei 
Vasiliev, who is also a member of the GOR state flight 
delegation (and attended civair talks pre-2005) will also be 
present.  He has been openly belligerent on the issue in 
meetings with us in the past and will likely get 
confrontational on the sidelines of this meeting.  FAA has 
had the experience of Vasiliev arguing out-of-turn during 
official negotiations.  End note.) 
 
------------------------------- 
PROPOSED NEW RUSSIA AIR ROUTES: 
FLIGHTS VIA ALASKA 
------------------------------- 
 
5. (U) The GOR notified us by diplomatic note of several 
proposed Russian airline routes to the United States, most of 
them routed through Alaska to benefit from the special Annex 
in our agreement.  Unofficial translations of the notes have 
been cabled to the Department, but we repeat here all the 
proposed round-trip routes we are aware of: 
 
Aeroflot Cargo: 
 
 
Khabarovsk - Anchorage - New York 
Khabarovsk - Anchorage - Chicago 
 
AirBridgeCargo (formerly Volga-Dnepr): 
Moscow - Amsterdam - Toronto - Atlanta 
Krasnoyarsk - Amsterdam - Toronto - Atlanta 
Moscow - Frankfurt - Toronto - Atlanta 
Krasnoyarsk - Frankfurt - Toronto - Atlanta 
Moscow - Amsterdam - New York 
Krasnoyarsk - Amsterdam - New York 
Moscow - Frankfurt - New York 
Krasnoyarsk - Frankfurt - New York 
Moscow - Amsterdam - Houston 
Krasnoyarsk - Amsterdam - Houston 
Moscow - Frankfurt - Houston 
Krasnoyarsk - Frankfurt - Houston 
 
Dalavia Airlines: 
Khabarovsk - Petropavlovsk-Kamchatskiy - Anchorage 
Magadan - Petropavlo
vsk-Kamchatskiy - Anchorage 
 
Domodedovo Airlines: 
Moscow - Miami 
 
GasProm Avia: 
Anadyr (Chukotka) - Anchorage 
 
Krasnoyarskiye Airlines (KrasAir): 
Moscow - New York 
Petropavlovsk-Kamchatskiy - Anchorage - Seattle 
 
S7 Airlines (formerly known as Sibir): 
Petropavlovsk-Kamchatskiy - Anchorage 
 
Sakhalin Airlines: 
Yuzhno-Sakhalinsk - Petropavlovsk-Kamchatskiy - Anchorage 
Vladivostok - Petropavlovsk-Kamchatskiy - Anchorage 
Anadyr (Chukotka) - Anchorage 
 
TESIS Airlines: 
Khabarovsk - Anchorage - Miami - Khabarovsk (not round-trip) 
Khabarovsk - Anchorage - New York - Khabarovsk (not 
round-trip) 
 
Transaero Airlines: 
Moscow - Miami 
St. Petersburg - New York 
Anadyr (Chukotka) - Anchorage 
Anadyr (Chukotka) - Seattle 
 
Vladivostok Avia: 
Vladivostok - Petropavlovsk-Kamchatskiy - Anchorage - Seattle 
Vladivostok - Yuzhno-Sakhalinsk - Anchorage - Seattle 
Petropavlovsk-Kamchatskiy - Anchorage - Seattle 
Yuzhno-Sakhalinsk -Anchorage - Seattle 
 
Yakutia Airlines: 
Yakutsk - Petropavlovsk-Kamchatskiy - Anchorage 
 
6. (SBU) These airlines vary considerably on their readiness 
to submit appropriate paperwork to DOT, FAA, and TSA for 
clearances on these routes.  Some are not even aware they 
have paperwork to file and, therefore, should not be 
considered serious applicants as of yet.  FAA, TSA, and DOT 
are considering the possibility of organizing a joint seminar 
for Russian airlines wishing to start service to the States 
to explain the procedures needed for full formal application. 
 
7. (C) The fact that so many of these routes go through 
Alaska is not a coincidence.  Not only do the Russians want 
to benefit from our special Annex on Alaska but the Kremlin 
has put its weight forward to improving the transportation 
infrastructure for the Russian Far East.  In response to this 
call, Russian business leader and Governor of Chukotka Roman 
Abramovich plans to set up two airlines of his own to service 
connections between Chukotka and Alaska. 
 
------------------------------ 
CODESHARING, NEW DESTINATIONS, 
AND PROGRESSIVE CLEARANCE 
------------------------------ 
 
8. (SBU) Aeroflot has taken several steps over the last year 
in its bid to become an internationally acclaimed airline and 
sees codesharing with other SkyTeam members as fundamental to 
its strategy.  Aeroflot has complained about the perceived 
 
disparity in codesharing approvals by the U.S. and the EU, 
with the latter more expeditiously processing applications. 
Aeroflot has lobbied the Ministry of Transport to pressure 
the USG to decide on the codeshares, so we expect to be on 
the agenda.  The GOR has not revealed to us its intentions to 
consider third country codesharing during this round. 
 
9. (SBU) The Russians designated Detroit and Minneapolis as 
new destinations to be serviced by codesharing.  Industry 
representatives have also expressed interested to us in 
Atlanta, Houston, Denver, Chicago, Washington, Los Angeles, 
and San Francisco as new codeshare destinations, but it is 
not clear if the GOR is ready to designate these cities or if 
the airlines are really ready to pursue code-share 
agreements. 
 
10. (SBU) We expect the Russians will raise the issue of 
progressive clearance for Aeroflot between New York JFK and 
Washington Dulles at these talks just as Levitin did in 
January.  TSA continues to work with DHS on this and other 
items discussed during Levitin's trip, such as a bilateral 
transportation security working group and flight marshals. 
 
----------------------- 
DELTA'S AGENDA REQUESTS 
----------------------- 
 
11. (SBU) Delta continues to have problems at Moscow,s 
Sheremetyevo Terminal 2 with Customs officials interfering in 
the hand luggage search before check-in and with airport 
police shaking down passengers for bribes at the final gate 
hand-luggage search.  Affected passengers have been those who 
appear to be from the Caucasus or Central Asia, as well as 
ethnic Russians and Americans who are perceived to be leaving 
with large sums of undeclared cash.  Delta maintains that 
Customs searches should not be done at the screening 
checkpoint and has formally complained to the Ministries of 
Transport and Interior. 
 
12. (SBU) Delta has also been charged three times in Russian 
courts with import violations due to illegal items being sent 
in through the U.S. Mail.  Per international postal 
agreements, airlines are not responsible for the contents of 
packages, especially when they are not allowed to screen the 
packages first.  The charges were eventually dropped, 
although Delta incurred significant legal expenses in 
presenting its case.  Delta would like the issue to be raised 
so that the next time an illegal item comes through the mail, 
Russian Customs will be less likely to press charges. 
 
13. (SBU) Finally, Delta Moscow has asked for the USG to 
consider spelling out customs treatment regarding the 
importation of aircraft parts and service items in our 
bilateral agreement.  Delta had to cancel a flight and ferry 
an empty plane back to the States last fall when a 
replacement antennae took three days to clear Russian customs 
(an episode that cost Delta approximately $80,000).  Though 
the company is no longer having phytosanitary trouble 
importing its service items into Russia for the return trip 
home, it still has to pay import duties (ranging between 25 
and 33 percent) on them, although they arguably never enter 
the Russian market. 
 
--------------------------------------------- - 
BILATERAL COOPERATION IN CASE OF AN EMERGENCY 
--------------------------------------------- - 
 
14. (SBU)  U.S. carriers have held crisis management 
exercises in Russia and are interested in knowing: 1) how 
overflight passengers without visas would be admitted through 
immigration to get urgent medical care or, in case of 
mechanical trouble, how they could transfer to a different 
plane 2) whetheQnon-Russian doctors on board a flight would 
be prosecuted for treating ill passengers in Russian airspace 
or on land; 3) whether the airline would be allowed to fly 
its "operation center" aircraft to a crash site and how 
expedited permits for special transmitting equipment can be 
obtained; 4) whether, in case of a "total loss," expedited 
visas or visas-upon-arrival could be granted for the  /- 100 
people the airline would want to send: counselors, technical 
experts, and crisis managers; and 5) how do answers to all 
these questions change if the plane went down in a border 
zone area that requires special security clearance? 
 
15. (SBU) Questions 1-4 would also apply to Russian aircraft 
flying to or over the United States.  For this reason, some 
carriers have informally approached u
s with the idea of 
having a bilateral MOU on what each country should do in case 
an aircraft of one of the other country's carriers had an 
incident or accident in its territory.  They have suggested 
raising this issue at bilateral consular discussions as well. 
 
----------------------- 
RUSSIAN DELEGATION LIST 
----------------------- 
 
16. (SBU) As of May 10, this is the list of Russian 
Delegation members.  Comments about particular individuals 
are in parentheses. 
 
RUSSIAN FEDERATION OFFICIALS 
- Gennady V. Loshchenov, Head of Delegation - Director 
General, Department of State Policy in Civil Aviation, 
Ministry of Transport (attended last year, and should be 
congratulated for his promotion from Deputy to Director 
General). 
 
- Irina G. Fedechinka - Head of Air Services Division, 
Department of State Policy in Civil Aviation, Ministry of 
Transport (attended 2005 talks, Loshchenov's closest advisor). 
 
- Elena A. Mikheeva - Deputy Head of Air Services Division, 
Department of State Policy in Civil Aviation, Ministry of 
Transport (attended 2005 talks, go-to person on Russian side 
for these negotiations, and a very good contact of Embassy 
Moscow). 
 
- Yulia V. Volodina - Senior Expert of the International 
Agreements Division Legal Department, Ministry of 
Transportation (attended 2005 talks). 
 
- Yulia Grechnushkina - Acting Director of the Air Transport 
Department, Russian Federal Air Transport Agency (new this 
year). 
 
- Mikhail Parnev - Director of the Department of 
International Relations, Russian Federal Air Navigation 
Authority (new this year, but chaired latest round of state 
flight talks). 
 
- Sergei E. Vasiliev - Department of International Relations, 
Russian Federal Air Navigation Authority (did not attend the 
2005 civair talks in Washington, but did attend many rounds 
prior to that one.  Member of state flights delegation and 
generally very difficult to deal with.  Not well liked by 
anyone, including his Russian colleagues). 
 
- Natalia Kirilova - Department of International Relations, 
Russian Federal Air Navigation Authority (has never attended 
talks, but a very good contact of Embassy Moscow). 
 
- A. Isaeva - Department of International Relations, Russian 
Federal Air Navigation Authority (new this year, first name 
unknown). 
 
- TBD Representative from Russian Ministry of Foreign Affairs 
(Andrey Veklenko attended last year). 
 
INDUSTRY REPRESENTATIVES 
 
- Natalia R. Teimurazova ) Aeroflot, Director for 
International Relations (new this year, but long-time and 
good contact of Embassy). 
 
- Kamil Feirafmanov - Aeroflot Cargo (new this year). 
 
- Andrey A. Shumilin - Deputy Director of International 
Relations of AirBridgeCargo, formerly Volga-Dnepr (attended 
2005 talks, good contact of Embassy). 
 
- Yuri A. Malishev - AirBridgeCargo (new this year). 
 
- Natalia Pechinkina - Transaero (new this year). 
 
- TBD Representative of Polet (Alexey E. Ozerov, Vice 
President, attended last year). 
 
- TBD Representative of KrasAir (Boris M. Abramovich, General 
Director, attended last year). 
 
- D. Lavrentiev - TESIS (new this year, first name unknown). 
BURNS

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