Brussels, 23/03/2007 (Agence Europe) - The Transport Council of 22 and 23 March reached a political agreement on the proposal for a decision on the signing and provisional application of the agreement relating to the principles for the modernisation of the current system for the use of trans-Siberian routes. The agreement, which was negotiated with Russia in November 2006 (see EUROPE 9314), puts an end to the charges imposed on European airline companies for flying over Siberia. It should be signed on 18 May during the EU-Russia summit. The decision will be accompanied by a compensation mechanism established by member states, a mechanism that aims to avoid competition distortion between Community operators on trans-Siberian routes during the period of transition of application of the agreement (2007-2013) during which current payments will be gradually reduced. In more concrete terms, the agreement with Russia provides, on one hand, for abolition of overflight payments imposed in the context of the compulsory bilateral agreements signed between the Community airlines that fly over Siberia and the national operator of Russia, Aeroflot (see EUROPE 9314 and 9390). On the other hand, in a clear letter joined to the agreement, the Russian party undertook to increase the frequency of overflight for Community carriers, which will be exempted from paying overflight charges. It was a matter of finding a mechanism to rebalance tariffs between companies already using trans-Siberian routes (KLM, SAS, Alitalia, AirFrance, Lufthansa, Finnair, Virgin Atlantic, British Airways) and the companies that will acquire new overflight possibilities in the context of the agreement. The agreement should be provisionally applicable from 1 September 2007. (aby)