EU-Russia accord on Siberian air taxes

The EU and Russia have agreed to abolish the taxes paid to Russia by European airlines flying over Siberia.

The deal was reached between EU transport commissioner Jacques Barrot and Russian transport minister Igor Levitin on Friday.

The agreement is set to be formally signed at the EU-Russia summit in Helsinki.

Barrot described the agreement as a "big step forward in our relations and towards a normalisation of aviation relations between the Russian Federation and the EU."

"This is a big success; the agreement will significantly improve the competitive situation of our European airlines and ease their operations between Europe and the growing markets in Asia.”

The EU's aim prior to the summit was to have Russia phase out the charges in 2013, a year earlier than previously agreed.

Both sides say the deal will serve to bolster relations between Moscow and Brussels.

But the news is likely to be overshadowed by failure to reach agreement on a new EU-Russia strategic partnership agreement.

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