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Document 22021A1103(01)

Common Aviation Area Agreement Between the European Union and its Member States, of the One Part, and Ukraine, of the Other Part

ST/7746/2021/INIT

OJ L 387, 3.11.2021, p. 3–57 (BG, ES, CS, DA, DE, ET, EL, EN, FR, GA, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)

Legal status of the document Date of entry into force unknown (pending notification) or not yet in force.

Related Council decision

3.11.2021   

EN

Official Journal of the European Union

L 387/3


COMMON AVIATION AREA AGREEMENT

Between the European Union and its Member States, of the One Part, and Ukraine, of the Other Part

THE KINGDOM OF BELGIUM,

THE REPUBLIC OF BULGARIA,

THE CZECH REPUBLIC,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE REPUBLIC OF ESTONIA,

IRELAND,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

THE REPUBLIC OF CROATIA,

THE ITALIAN REPUBLIC,

THE REPUBLIC OF CYPRUS,

THE REPUBLIC OF LATVIA,

THE REPUBLIC OF LITHUANIA,

THE GRAND DUCHY OF LUXEMBOURG,

HUNGARY,

THE REPUBLIC OF MALTA,

THE KINGDOM OF THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE REPUBLIC OF POLAND,

THE PORTUGUESE REPUBLIC,

ROMANIA,

THE REPUBLIC OF SLOVENIA,

THE SLOVAK REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

being parties to the Treaty on European Union and the Treaty on the Functioning of the European Union (hereinafter referred to as "the EU Treaties") and being Member States of the European Union (hereinafter referred to as the "EU Member States"),

and

THE EUROPEAN UNION, hereinafter also referred to as "the EU",

of the one part,

and

UKRAINE, of the other part,

hereinafter jointly referred to as "the Parties";

DESIRING to create a common aviation area (CAA) based on mutual market access to the air transport markets of the Parties, with equal conditions of competition and respect for the same rules – including in the areas of safety, security, air traffic management, social harmonisation and the environment;

RECOGNISING the integrated character of international civil aviation and the rights and obligations of Ukraine and the EU Member States stemming from their membership of international aviation organisations, in particular the International Civil Aviation Organisation (ICAO) and the European Organisation for the Safety of Air Navigation, as well as their rights and obligations under international agreements with third parties and international organisations;

DESIRING to deepen relations between the Parties in the field of air transport, including in the area of industrial cooperation, and to build upon the framework of the existing system of air services agreements in order to promote economic, cultural and transport links between the Parties;

DESIRING to facilitate the expansion of air transport opportunities, including through the development of air transport networks in order to meet the needs of passengers and shippers for convenient air transport services;

RECOGNISING the importance of air transport in promoting trade, tourism and investment;

NOTING the Convention on International Civil Aviation, opened for signature at Chicago on 7 December 1944;

BEARING IN MIND that the Association Agreement between the European Union and the European Atomic Energy Community and their Member States and Ukraine provides that, with a view to assuring a coordinated development of transport between the Parties adapted to their commercial needs, the conditions of mutual market access and provision of services in air transport may be dealt with by specific agreements;

DESIRING to make it possible for air carriers to offer passengers and shippers competitive prices and services in open markets;

DESIRING to have all sectors of the air transport industry, including air carrier workers, benefit from a liberalised agreement;

INTENDING to build upon the framework of existing air transport agreements with the goal of gradually opening access to markets and maximising benefits for the consumers, air carriers, workers and communities of both Parties;

AGREEING that it is appropriate to base the CAA rules on the relevant legislation within the European Union, as laid down in Annex I to this Agreement, without prejudice to the EU Treaties and the Constitution of Ukraine;

NOTING the intention of Ukraine to incorporate into its aviation legislation the corresponding requirements and standards of the European Union, including with regard to future legislative developments within the EU;

DESIRING to ensure the highest degree of safety and security in international air transport and reaffirming their grave concern with regard to acts or threats against the security of aircraft which jeopardise the safety of persons or property, adversely affect the operation of aircraft and undermine the confidence of the travelling public in the safety of civil aviation;

RECOGNISING the benefits that both Parties can reap from full compliance with the CAA rules, including the opening of access to markets and the maximisation of benefits for the consumers and the industries of both Parties;

RECOGNISING that the creation of the CAA and implementation of its rules cannot be achieved without transitional arrangements and that adequate assistance is important in this perspective;

EMPHASISING that air carriers should be treated in a transparent and non-discriminatory manner regarding their access to air transport infrastructures, especially where these infrastructures are limited, including access to airports;

DESIRING to ensure a level playing field for air carriers, allowing fair and equal opportunity for their air carriers to operate the agreed services;

RECOGNISING that government subsidies may adversely affect air carrier competition and may jeopardise the basic objectives of this Agreement;

AFFIRMING the importance of protecting the environment in developing and implementing international aviation policy and recognising the rights of sovereign States to take appropriate measures to this effect;

NOTING the importance of protecting consumers, including the protections afforded by the Convention for the Unification of Certain Rules for International Carriage by Air, done at Montreal 28 May 1999;

WELCOMING the ongoing dialogue between the Parties to deepen their relations in other areas, in particular to facilitate the movement of people,

HAVE AGREED AS FOLLOWS:

TITLE I

GENERAL PROVISIONS

Article 1

Objectives and scope

The aim of this Agreement is the gradual creation of a CAA between the European Union, its Member States and Ukraine founded on, in particular, identical rules in the areas of safety, security, air traffic management, the environment, consumer protection and computerised reservation systems, as well as identical rules with regard to social aspects. For this purpose, this Agreement sets out the rules, technical requirements, administrative procedures, basic operational standards and implementing rules applicable between the Parties.

That CAA shall be based on free access to the air transportation market and equal conditions of competition.

Article 2

Definitions

For the purposes of this Agreement, unless otherwise stated, the following definitions apply:

(1)

"agreed services" and "specified routes" mean international air transport pursuant to Article 16 and Annex II to this Agreement;

(2)

"Agreement" means this Agreement, its Annexes and any amendments thereto;

(3)

"air transport" means the public carriage by aircraft of passengers, baggage, cargo and mail, separately or in combination, for remuneration or hire; for the avoidance of doubt, this includes scheduled and non-scheduled (charter) services and full cargo services;

(4)

"air carrier" means a company or undertaking with a valid operating licence or equivalent;

(5)

"competent authorities" means the government agencies or public bodies responsible for the administrative functions under this Agreement;

(6)

"companies or undertakings" means entities constituted under civil or commercial law, including cooperative societies, and other legal persons governed by public or private law, save for those which are non-profit-making;

(7)

"Convention" means the Convention on International Civil Aviation, opened for signature at Chicago on 7 December 1944 and includes:

(a)

any amendment that has come into force under Article 94(a) of the Convention and has been ratified by both Ukraine and an EU Member State or the EU Member States; and

(b)

any annex or any amendment thereto adopted under Article 90 of the Convention, insofar as such annex or amendment is at any given time effective for both Ukraine and an EU Member State or the EU Member States as is relevant to the issue in question;

(8)

"ECAA Agreement" means the multilateral Agreement between the European Community and its Member States, the Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, the Republic of Croatia, the former Yugoslav Republic of Macedonia, the Republic of Iceland, the Republic of Montenegro, the Kingdom of Norway, Romania, the Republic of Serbia and the United Nations Interim Administration Mission in Kosovo (1) on the establishment of a European Common Aviation Area;

(9)

"EASA" means the European Aviation Safety Agency, established by Regulation (EC) No 216/2008 of the European Parliament and of the Council of 20 February 2008 on common rules in the field of civil aviation and establishing a European Aviation Safety Agency, and repealing Council Directive 91/670/EEC, Regulation (EC) No 1592/2002 and Directive 2004/36/EC;

(10)

"effective control" means a relationship constituted by rights, contracts or any other means which, either separately or jointly, and having regard to the considerations of fact or law involved, confer the possibility of directly or indirectly exercising a decisive influence on an undertaking, in particular by means of:

(a)

the right to use all or part of the assets of an undertaking;

(b)

rights or contracts which confer a decisive influence on the composition, voting or decisions of the bodies of an undertaking or otherwise confer a decisive influence on the running of the business of the undertaking;

(11)

"effective regulatory control" means that the competent licensing authority of a Party which issued an operating licence or permit to an air carrier:

(a)

continuously verifies that the applicable criteria for the operation of international air services, on the basis of which an operating licence or permit is issued, are met by that air carrier, in accordance with relevant national laws and regulations; and

(b)

maintains appropriate oversight as regards safety and security in compliance with at least ICAO standards;

(12)

"EU Treaties" means the Treaty on European Union and the Treaty on the Functioning of the European Union;

(13)

"EU Member State" means a Member State of the European Union;

(14)

"fitness" means whether an air carrier is fit to operate international air services, i.e. whether it has satisfactory financial capability and adequate managerial expertise and is disposed to comply with the laws, regulations and requirements which govern the operation of such services;

(15)

"fifth freedom right" means the right or privilege granted by one State ("the Granting State") to the air carriers of another State ("the Recipient State") to provide international air transport services between the territory of the Granting State and the territory of a third State, subject to the condition that such services originate or terminate in the territory of the Recipient State;

(16)

"full cost" means the cost of providing air service plus reasonable charge for administrative overhead and, where relevant, any applicable charges aimed at reflecting environmental costs and applied without distinction as to nationality;

(17)

"ICAO" means the International Civil Aviation Organization established according to the Convention;

(18)

"international air transport" means air transport between points in at least two States;

(19)

"intermodal transportation" means the public carriage by aircraft and by one or more surface modes of transport of passengers, baggage, cargo and mail, separately or in combination, for remuneration or hire;

(20)

"measure" means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision or administrative action, or in any other form;

(21)

"national" means:

(a)

in the case of Ukraine, any person having Ukrainian nationality or, in the case of the European Union and its Member States, any person having the nationality of an EU Member State; or

(b)

any legal entity:

(i)

which is owned directly or through majority ownership and is at all times effectively controlled by, in the case of Ukraine, persons or entities having Ukrainian nationality or, in the case of the European Union and its Member States, persons or entities having the nationality of an EU Member State or one of the other States listed in Annex V to this Agreement, and

(ii)

the principal place of business of which is, in the case of Ukraine, in Ukraine or, in the case of the European Union and its Member States, in a Member State;

(22)

"nationality", in the context of an air carrier, means whether an air carrier satisfies requirements regarding such issues as its ownership, effective control and principal place of business;

(23)

"operating licence" means:

(a)

in the case of the European Union and its Member States, an authorisation granted by the competent licensing authority to a company or undertaking, permitting it to provide air services under the relevant EU legislation; and

(b)

in the case of Ukraine, a licence for carriage by air of passengers and/or cargo, given under the relevant legislation of Ukraine;

(24)

"price" means:

(a)

air fares to be paid to air carriers or their agents or other ticket sellers for the carriage of passengers and baggage on air services and any conditions under which those prices apply, including remuneration and conditions offered to agency and other auxiliary services; and

(b)

air rates to be paid for the carriage of mail and cargo and the conditions under which those prices apply, including remuneration and conditions offered to agency and other auxiliary services.

This definition covers, where applicable, the surface transport in connection with international air transport, and the conditions to which the application of air fares and air rates is subject;

(25)

"Association Agreement" means the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, done at Brussels on 21 March 2014 and 27 June 2014, and any successor instrument;

(26)

"principal place of business" means the head office or registered office of an air carrier, within which the principal financial functions and operational control, including continued airworthiness management, of the air carrier are exercised;

(27)

"public service obligation" means any obligation imposed upon air carriers to ensure on a specified route the minimum provision of scheduled air services satisfying fixed standards of continuity, regularity, pricing and minimum capacity which air carriers would not assume if they were solely considering their commercial interest. Air carriers may be compensated by the Party concerned for fulfilling public service obligations;

(28)

"SESAR" means the Single European Sky ATM Research Programme, which is the technological element of the Single European Sky and aims to give the EU a high-performance air traffic control infrastructure to enable the safe and environmentally friendly development of air transport;

(29)

"subsidy" means any financial contribution granted by a government, regional public body or other public organisation, i.e. where:

(a)

a practice of a government, regional public body or other public organisation involves a direct transfer of funds such as grants, loans or equity infusion, a potential direct transfer of funds to the company, the assumption of liabilities of the company such as loan guarantees, capital injections, ownership, protection against bankruptcy or insurance;

(b)

revenue of a government, regional public body or other public organisation that is otherwise due is foregone, not collected or unduly diminished;

(c)

a government, regional public body or other public organisation provides goods or services other than general infrastructure, or purchases goods or services; or

(d)

a government, regional public body or other public organisation makes payments to a funding mechanism or entrusts or directs a private body to carry out one or more of the types of functions referred to in points (a), (b) and (c) which would normally be vested in the government and, in practice, in no real sense differ from practices normally followed by governments;

and where a benefit is thereby conferred;

(30)

"territory" means, for Ukraine, the land areas and territorial waters adjacent thereto under the sovereignty of Ukraine and, for the European Union, the land areas (mainland and islands), internal waters and territorial sea in which the Treaty on European Union and the Treaty on the Functioning of the European Union are applied and under the conditions laid down in those Treaties and any successor instrument;

(31)

"Transit Agreement" means the International Air Services Transit Agreement, done at Chicago on 7 December 1944;

(32)

"user charge" means a charge imposed on air carriers by the competent authority or permitted by that authority for the use by aircrafts, their crews, passengers, cargo and mail of facilities and services related to air navigation (including in the case of overflights), air traffic control, and airport and aviation security.

Article 3

Implementation of the Agreement

1.   The Parties shall take all appropriate measures, whether general or particular, to ensure fulfilment of the obligations arising out of this Agreement and shall abstain from any measure which could jeopardise the attainment of the objectives of this Agreement.

2.   The implementation of the measures referred to in paragraph 1 of this Article shall be without prejudice to the rights and obligations of any Party stemming from its participation in international organisations and/or international agreements, in particular the Convention and the Transit Agreement.

3.   In applying the measures of paragraph 1 of this Article, the Parties shall, within the scope of this Agreement:

(a)

abolish all unilateral administrative, technical or other measures which could constitute an indirect restriction and have discriminatory effects on the provision of air services under this Agreement; and

(b)

refrain from implementing administrative, technical or legislative measures which could have the effect of discriminating against nationals or companies or undertakings of the other Party in the provision of services under this Agreement.

Article 4

Non-discrimination

Within the scope of this Agreement, and without prejudice to any special provisions contained therein, any discrimination on grounds of nationality shall be prohibited.

TITLE II

REGULATORY COOPERATION

Article 5

General principles of regulatory cooperation

1.   The Parties shall cooperate through all possible means to ensure the progressive incorporation in Ukraine's legislation of the requirements and standards of the European Union acts listed in Annex I to this Agreement, as well as the implementation by Ukraine of these provisions via:

(a)

periodic consultations, within the framework of the Joint Committee referred to in Article 29 ("Joint Committee") of this Agreement on the interpretation of the European Union acts listed in Annex 1 to this Agreement related to aviation safety and security, air traffic management, environmental protection, market access and ancillary issues, social matters, consumer protection and other areas covered by this Agreement;

(b)

provision of adequate assistance in specific areas identified by the Parties;

(c)

consultations and exchange of information on new legislation according to Article 15 of this Agreement.

2.   Ukraine shall adopt the necessary measures to incorporate into the Ukrainian legal system and implement the requirements and standards of the European Union acts listed in Annex I to this Agreement in accordance with the transitional arrangements specified in Article 33 and the related Annex III to this Agreement.

3.   The Parties shall inform each other on their respective authorities responsible in the area of safety oversight, airworthiness, air carriers licensing, airport matters, aviation security, air traffic management, accident and incident investigation, establishment of air navigation and airport charges without delay through the Joint Committee.

Article 6

Compliance with laws and regulations

1.   While entering, within or leaving the territory of one Party, the laws and regulations applicable within that territory relating to the admission to or departure from its territory of aircraft engaged in air transport, or to the operation and navigation of aircraft shall be complied with by the other Party's air carriers.

2.   While entering, within or leaving the territory of one Party, the laws and regulations applicable within that territory relating to the admission to or departure from its territory of passengers, crew or cargo on aircraft (including regulations relating to entry, clearance, immigration, passports, customs and quarantine or, in the case of mail, postal regulations) shall be complied with by, or on behalf of, such passengers, crew or cargo of the other Party's air carriers.

Article 7

Aviation safety

1.   Subject to the transitional provisions set out in Annex III to this Agreement, the Parties shall act in conformity with their respective legislation concerning the requirements and standards relating to aviation safety specified in Annex I, Part C, to this Agreement under the conditions set out in this Article.

2.   While continuing to carry out functions and tasks of the State of design, manufacture, registration and operator, as provided by the Convention, Ukraine shall incorporate in its legislation and effectively implement the requirements and standards referred to in paragraph 1 of this Article, in accordance with the transitional provisions stipulated in Annex III to this Agreement.

3.   The Parties shall cooperate to ensure the effective implementation by Ukraine of its legislation adopted with the aim of incorporating the requirements and standards referred to in paragraph 1 of this Article. For this purpose, Ukraine shall be involved in the work of EASA as an observer from the date of entry into force of this Agreement, as provided for in Annex VI to this Agreement.

4.   To ensure operating of agreed services under points (a), (b), (c) and (d) of Article 16(1) of this Agreement, each Party shall recognise as valid certificates of airworthiness, certificates of competency and licences issued or validated by the other Party and still in force, provided that the requirements for such certificates or licences at least equal to the minimum standards that may be established pursuant to the Convention.

5.   The recognition by the EU Member States of certificates issued by Ukraine referred to in Annex IV, Section 1, to this Agreement shall be decided in accordance with the provisions stipulated in Annex III to this Agreement.

6.   The Parties shall cooperate towards the convergence of certification systems in the areas of initial and continuing airworthiness.

7.   The Parties shall ensure that aircraft registered in one Party suspected of non-compliance with international aviation safety standards established pursuant to the Convention and landing at airports open to international air traffic in the territory of the other Party shall be subject to ramp inspections by the competent authorities of that other Party, on board and around the aircraft, to check both the validity of the aircraft documents and those of its crew and the apparent condition of the aircraft and its equipment.

8.   The Parties shall exchange information, including on any findings, identified during ramp inspections carried out in accordance with paragraph 7 of this Article through the relevant means.

9.   The competent authorities of a Party may request consultations with the competent authorities of the other Party at any time concerning the safety standards maintained by the other Party, including in areas other than those covered by the acts referred to in Annex I to this Agreement, or on findings, identified during the ramp inspections. Such consultations shall take place within 30 days of that request.

10.   Nothing in this Agreement shall be construed so as to limit the authority of a Party to take all appropriate and immediate measures whenever it ascertains that an aircraft, a product or an operation may:

(a)

fail to satisfy the minimum standards established pursuant to the Convention or the requirements and standards specified in Annex I, Part C, to this Agreement whichever is applicable;

(b)

give rise to serious concerns – established through an inspection referred to in paragraph 7 of this Article – that an aircraft or the operation of an aircraft does not comply with the minimum standards established pursuant to the Convention or the requirements and standards specified in Annex I, Part C, to this Agreement whichever is applicable; or

(c)

give rise to serious concerns that there is a lack of effective maintenance and administration of minimum standards established pursuant to the Convention or the requirements and standards specified in Annex I, Part C, to this Agreement whichever is applicable.

11.   Where a Party takes action under paragraph 10 of this Article, it shall promptly inform the competent authorities of the other Party of taking such action, providing reasons for its action.

12.   Where measures taken in application of paragraph 10 of this Article are not discontinued even though the basis for taking them has ceased to exist, either Party may refer the matter to the Joint Committee.

13.   Any amendments to national law with respect to the status of the competent authorities of Ukraine or any competent authority of the EU Member States shall be notified, without delay, by the Party concerned to the other Parties.

Article 8

Aviation security

1.   Ukraine shall incorporate in its legislation and effectively implement the provisions contained in the European Civil Aviation Conference (ECAC) Document 30, Part II, in accordance with the transitional provisions stipulated in Annex III to this Agreement. In the context of the assessments provided for in Article 33(2) of this Agreement, European Commission inspectors may participate as observers in the inspections carried out by the Ukrainian competent authorities in airports located in the territory of Ukraine, according to a mechanism agreed by the two Parties. This Agreement shall be without prejudice to the rights and obligations of Ukraine and the EU Member States under Annex 17 to the Convention.

2.   The assurance of safety for civil aircraft, their passengers and crew being a fundamental pre-condition for the operation of international air services, the Parties reaffirm their obligations to each other to provide for the security of civil aviation against acts of unlawful interference, and in particular their obligations under the Convention, the Convention on Offences and Certain Other Acts Committed on Board Aircraft, signed at Tokyo on 14 September 1963, the Convention for the Suppression of Unlawful Seizure of Aircraft, signed at The Hague on 16 December 1970, the Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, signed at Montreal on 23 September 1971, the Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, signed at Montreal on 24 February 1988 and the Convention on the Marking of Plastic Explosives for purpose of Detection, signed at Montreal on 1 March 1991, insofar as both Parties are parties to these conventions, as well as all other conventions and protocols relating to civil aviation security of which both Parties are parties.

3.   The Parties shall provide upon request all necessary assistance to each other to prevent acts of unlawful seizure of civil aircraft and other unlawful acts against the safety of such aircraft, their passengers and crew, airports and air navigation facilities, and any other threat to the security of civil aviation.

4.   The Parties shall, in their mutual relations, act in conformity with the aviation security Standards and, so far as they are applied by them, the Recommended Practices established by the ICAO and designated as Annexes to the Convention, to the extent that such security provisions are applicable to the Parties. Both Parties shall require that operators of aircraft of their registry, operators who have their principal place of business or permanent residence in their territory, and the operators of airports in their territory, act in conformity with such aviation security provisions.

5.   Each Party shall ensure that effective measures are taken within its territory to protect civil aviation against acts of unlawful interference, including, but not limited to, screening of passengers and their cabin baggage, screening of hold baggage and security controls for cargo and mail prior to boarding or loading of aircraft, as well as security controls for in-flight supplies and airport supplies and access control and screening of persons other than passengers upon entering to security restricted areas. Those measures shall be adjusted as necessary, to address vulnerabilities and threats in civil aviation. Each Party agrees that their air carriers may be required to observe the aviation security provisions referred to in paragraph 4 of this Article required by the other Party, for entry into, departure from or while within the territory of that other Party.

6.   Each Party shall also give positive consideration to any request from the other Party for reasonable special security measures to meet a particular threat. Except where not reasonably possible in case of emergency, each Party will inform the other Party in advance of any special security measures it intends to introduce which could have a significant financial or operational impact on the air transport services provided under this Agreement. Either Party may request a meeting of the Joint Committee to discuss such security measures, as provided for in Article 29 of this Agreement.

7.   When an incident or threat of an incident of unlawful seizure of civil aircraft or other unlawful acts against the safety of such aircraft, their passengers and crew, airports or air navigation facilities occurs, the Parties shall assist each other by facilitating communications and other appropriate measures intended to terminate rapidly and safely such incident or threat.

8.   Each Party shall take all measures it finds practicable to ensure that an aircraft subjected to an act of unlawful seizure or other acts of unlawful interference which is on the ground in its territory is detained on the ground unless its departure is necessitated by the overriding duty to protect human life. Wherever practicable, such measures shall be taken on the basis of mutual consultations.

9.   When a Party has reasonable grounds to believe that the other Party has departed from the aviation security provisions of this Article, that Party shall request immediate consultations with the other Party.

10.   Without prejudice to Article 19 of this Agreement, failure to reach a satisfactory agreement within 15 days from the date of such request shall constitute grounds to withhold, revoke, limit or impose conditions on the operating authorisation of one or more air carriers of such other Party.

11.   When required by an immediate and extraordinary threat, a Party may take interim action prior to the expiry of 15 days.

12.   Any action taken in accordance with the paragraph 10 or 11 of this Article shall be discontinued upon compliance by the other Party with the full provisions of this Article.

Article 9

Air traffic management

1.   Subject to the transitional provisions set out in Annex III to this Agreement, the Parties shall act in conformity with their respective legislation concerning the requirements and standards relating to air traffic management specified in Annex I, Part B, to this Agreement under the conditions set out in this Article.

2.   Ukraine shall incorporate in its legislation and effectively implement the requirements and standards referred to in paragraph 1 of this Article in accordance with the transitional provisions stipulated in Annex III to this Agreement.

3.   The Parties shall cooperate in the field of air traffic management to ensure the effective implementation by Ukraine of its legislation adopted with the aim of incorporating the requirements and standards referred to in paragraph 1 of this Article, as well as with a view to extending the Single European Sky to Ukraine in order to enhance current safety standards and overall efficiency of general air traffic operations in Europe, to optimise air traffic control capacities, to minimise delays and to increase environmental efficiency.

4.   To this purpose, Ukraine shall be involved as an observer in the Single Sky Committee from the date of entry into force of this Agreement and Ukrainian competent entities and/or authorities shall be associated on a non-discriminatory basis, through appropriate coordination regarding SESAR in accordance with the relevant legislation.

5.   The Joint Committee shall be responsible for monitoring and facilitating cooperation in the field of air traffic management.

6.   With a view to facilitating the application of the Single European Sky legislation:

(a)

Ukraine shall take the necessary measures to adjust its air traffic management institutional structures to the Single European Sky; and

(b)

the European Union shall facilitate the participation of Ukraine in operational activities in the fields of air navigation services, airspace use and interoperability that stem from the Single European Sky.

7.   This Agreement shall be without prejudice to the rights and obligations of Ukraine under the Convention, as well as regional air navigation agreements in force and approved by the ICAO Council. After the entry into force of this Agreement, any subsequent regional agreement should comply with its provisions.

8.   With a view to maintaining a high level of safety in order to maximise the capacity of airspace and efficiency of air traffic management and subject to the transitional provisions set out in Annex III to this Agreement, Ukraine shall organise the airspace under its responsibility in line with the EU requirements concerning the establishment of functional airspace blocks (FABs), as referred to in Annex I, Part B, to this Agreement.

The Parties shall cooperate to consider the possible integration of the airspace under Ukraine's responsibility into a FAB, in line with EU legislation and taking into consideration the operational benefits of such integration.

9.   The recognition by the EU Member States of the relevant certificates issued by Ukraine referred to in Annex IV, Section 2, to this Agreement shall be decided in accordance with Annex III to this Agreement.

Article 10

Environment

1.   The Parties recognise the importance of protecting the environment when developing and implementing aviation policy. The Parties acknowledge that effective global, regional, national and/or local action is needed to minimise civil aviation's impact on the environment.

2.   Subject to the transitional provisions set out in Annex III to this Agreement, the Parties shall act in conformity with their respective legislation concerning the requirements and standards relating to the environment specified in Annex I, Part D, to this Agreement under the conditions set out in this Article.

3.   Ukraine shall incorporate in its legislation and effectively implement the requirements and standards referred to in paragraph 2 of this Article, in accordance with the transitional provisions stipulated in Annex III to this Agreement.

4.   The Parties shall cooperate to ensure the effective implementation by Ukraine of its legislation adopted with the aim of incorporating the requirements and standards referred to in paragraph 2 of this Article, while recognising the importance of working together, and within the framework of multilateral discussions, to consider the effects of aviation on the environment, and to ensure that any mitigating measures are fully consistent with the objectives of this Agreement.

5.   Nothing in this Agreement shall be construed to limit the authority of the competent authorities of a Party to take all appropriate measures to prevent or otherwise address the environmental impacts of air transport provided that such measures are applied without distinction as to nationality and do not contradict rights and obligations of the Parties under international law.

Article 11

Consumer protection

1.   Subject to the transitional provisions set out in Annex III to this Agreement, the Parties shall act in conformity with their respective legislation concerning the requirements and standards relating to consumer protection specified in Annex I, Part F, to this Agreement.

2.   Ukraine shall incorporate in its legislation and effectively implement the requirements and standards referred to in paragraph 1 of this Article, in accordance with the transitional provisions stipulated in Annex III to this Agreement.

3.   The Parties shall cooperate to ensure the effective implementation by Ukraine of its legislation adopted with the aim of incorporating the requirements and standards referred to in paragraph 1 of this Article.

4.   The Parties shall also cooperate to ensure the protection of consumers' rights ensuing from this Agreement.

Article 12

Industrial cooperation

1.   The Parties shall aim at enhancing industrial cooperation, and in particular by means of:

(i)

development of business links between aviation manufacturers of both sides;

(ii)

promotion and development of joint projects aiming at the sustainable development of the air transport sector, including its infrastructure;

(iii)

technical cooperation for the implementation of EU standards;

(iv)

promotion of opportunities for aviation manufacturers and designers; and

(v)

promotion of investment within the scope of this Agreement.

2.   This Agreement shall be without prejudice to existing technical and industrial standards in Ukraine for the manufacturing of aircraft and their components that are not covered by Annex I to this Agreement.

3.   The Joint Committee shall monitor and facilitate industrial cooperation.

Article 13

Computerised reservation systems

1.   Subject to the transitional provisions set out in Annex III to this Agreement, the Parties shall act in conformity with their respective legislation concerning the requirements and standards relating to computerised reservation systems specified in Annex I, Part G, to this Agreement. The Parties shall guarantee free access by one Party's computerised reservation systems to the other Party's market.

2.   Ukraine shall incorporate in its legislation and effectively implement the requirements and standards referred to in paragraph 1 of this Article, in accordance with transitional provisions stipulated in Annex III to this Agreement.

3.   The Parties shall cooperate to ensure the implementation by Ukraine of its legislation adopted with the aim of incorporating the requirements and standards referred to in paragraph 1 of this Article.

Article 14

Social aspects

1.   Subject to the transitional provisions set out in Annex III to this Agreement, the Parties shall act in conformity with their respective legislation concerning the requirements and standards relating to social aspects specified in Annex I, Part E, to this Agreement.

2.   Ukraine shall adopt the necessary measures to incorporate in its legislation and effectively implement the requirements and standards referred to in paragraph 1 of this Article, in accordance with transitional provisions stipulated in Annex III to this Agreement.

3.   The Parties shall cooperate to ensure the implementation by Ukraine of its legislation adopted with the aim of incorporating the requirements and standards referred to in paragraph 1 of this Article.

Article 15

New legislation

1.   This Agreement shall be without prejudice to the right of each Party, subject to compliance with the principle of non-discrimination and the provisions of this Article and of Article 4 of this Agreement, to unilaterally adopt new legislation or amend its existing legislation in the field of air transport or an associated area mentioned in Annex I to this Agreement.

2.   When one Party considers adopting new legislation within the scope of this Agreement or an amendment to its legislation it shall inform the other Party. Upon the request of either Party, the Joint Committee shall within two months thereafter hold an exchange of views on the implications of such new legislation or amendment for the proper functioning of this Agreement.

3.   The Joint Committee shall:

(a)

adopt a decision revising Annex I to this Agreement so as to integrate therein, if necessary on a basis of reciprocity, the new legislation or amendment in question;

(b)

adopt a decision to the effect that the new legislation or amendment in question is to be regarded as in accordance with this Agreement; or

(c)

recommend any other measures for adoption within a reasonable period of time to ensure the proper functioning of this Agreement.

TITLE III

ECONOMIC PROVISIONS

Article 16

Grant of rights

1.   Each Party shall grant to the other Party in accordance with Annexes II and III to this Agreement the following rights for the conduct of international air transport by the air carriers of the other Party:

(a)

the right to fly over its territory without landing;

(b)

the right to make stops in its territory for any purpose other than taking on or discharging passengers, baggage, cargo and/or mail in air transport (non-traffic purposes);

(c)

while operating an agreed service on a specified route, the right to make stops in its territory for the purpose of taking up and discharging international traffic in passengers, cargo and/or mail, separately or in combination; and

(d)

the rights otherwise specified in this Agreement.

2.   Nothing in this Agreement shall be deemed to confer on the air carriers of Ukraine the right to take on board, in the territory of any EU Member State, passengers, baggage, cargo and/or mail carried for compensation and destined for another point in the territory of that Member State.

Article 17

Operating authorisation and technical permission

On receipt of applications for operating authorisation or technical permission from an air carrier of one Party, which should be submitted in the form and manner prescribed for operating authorisations or technical permissions, the competent authorities of the other Party shall grant appropriate authorisations with minimum procedural delay, provided that:

(a)

for an air carrier of Ukraine:

(i)

the air carrier has its principal place of business in Ukraine and holds a valid operating licence in accordance with the applicable law of Ukraine;

(ii)

effective regulatory control of the air carrier is exercised and maintained by Ukraine and the relevant competent authority is clearly identified; and

(iii)

unless otherwise determined under Article 20 of this Agreement, the air carrier is owned directly or through majority ownership and effectively controlled by Ukraine and/or its nationals;

(b)

for an air carrier of the European Union:

(i)

the air carrier has its principal place of business in the territory of an EU Member State under the EU Treaties and holds a valid operating licence in accordance with the applicable European Union law;

(ii)

effective regulatory control of the air carrier is exercised and maintained by the EU Member State responsible for issuing its Air Operators Certificate and the relevant competent authority is clearly identified; and

(iii)

unless otherwise determined under Article 20 of this Agreement, the air carrier is owned directly or through majority ownership and effectively controlled by one or more EU Member States and/or by their nationals or by other States listed in Annex V to this Agreement and/or by their nationals;

(c)

the air carrier meets the conditions prescribed under the laws and regulations referred to in Article 6 of this Agreement; and

(d)

the provisions set forth in Articles 7 and 8 of this Agreement are being maintained and administered.

Article 18

Reciprocal recognition of regulatory determinations with regard to air carrier fitness and nationality

1.   On receipt of an application for operating authorisation or technical permission from an air carrier of one Party, the competent authorities of the other Party shall recognise any fitness or nationality determination made by the competent authorities of the first Party with respect to that air carrier as if such determination had been made by its own competent authorities and not inquire further into such matters, except as provided for in paragraph 2 of this Article.

2.   If, after receipt of an application for operating authorisation or technical permission from an air carrier, or after the grant of such operating authorisation or technical permission, the competent authorities of the receiving Party have a specific reason for concern that, despite the determination made by the competent authorities of the other Party the conditions prescribed in Article 17 of this Agreement for the grant of appropriate operating authorisations or technical permissions have not been met, then they are to promptly advise those authorities, giving substantive reasons for their concern. In that event, either Party may seek consultations, which may include representatives of the relevant competent authorities and/or additional information relevant to this concern and such requests are to be met as soon as practicable. If the matter remains unresolved, either Party may bring the matter to the Joint Committee.

Article 19

Refusal, revocation, suspension, limitation of operating authorisation or technical permission

1.   The competent authorities of either Party may refuse, revoke, suspend or limit the operating authorisations or technical permissions or otherwise suspend or limit the operations of an air carrier of another Party where:

(a)

for an air carrier of Ukraine:

(i)

the air carrier does not have its principal place of business in Ukraine or does not hold a valid operating licence in accordance with the applicable law of Ukraine;

(ii)

effective regulatory control of the air carrier is not exercised or maintained by Ukraine or the relevant competent authority is not clearly identified; or

(iii)

unless otherwise determined under Article 20 of this Agreement, the air carrier is not owned directly or through majority ownership or effectively controlled by Ukraine and/or its nationals;

(b)

for an air carrier of the European Union:

(i)

the air carrier does not have its principal place of business in the territory of a EU Member State under the EU Treaties, or does not hold a valid operating licence in accordance with the applicable European Union law; or

(ii)

effective regulatory control of the air carrier is not exercised or maintained by the EU Member State responsible for issuing its Air Operators Certificate or the competent authority is not clearly identified; or

(iii)

unless otherwise determined under Article 20 of this Agreement, the air carrier is not owned, directly or through majority ownership or effectively controlled by one or more EU Member States and/or their nationals or by the other States listed in Annex V to this Agreement and/or their nationals;

(c)

the air carrier has failed to comply with the laws and regulations referred to in Article 6 of this Agreement;

(d)

the provisions set forth in Articles 7 and 8 of this Agreement are not being maintained or administered; or

(e)

a Party has made the determination in accordance with Article 26(5) of this Agreement that the conditions for a competitive environment are not being fulfilled.

2.   Unless immediate action is essential to prevent further non-compliance with point (c) or (d) of paragraph 1 of this Article, the rights established by this Article shall be exercised only after consultation with the competent authorities of the other Party.

3.   Neither Party shall use its rights established by this Article to refuse, revoke, suspend or limit operating authorisations or technical permissions of any air carriers of a Party on the grounds that majority ownership and/or effective control of that air carrier is vested in one or more Parties to the ECAA Agreement or their nationals, provided that such Party or Parties to the ECAA Agreement offer reciprocal treatment and apply the terms and conditions of the ECAA Agreement.

Article 20

Investment in air carriers

1.   Notwithstanding Articles 17 and 19 of this Agreement, the majority ownership or the effective control of an air carrier of Ukraine by the EU Member States and/or their nationals, or of an air carrier of the European Union by Ukraine and/or its nationals, shall be permitted by virtue of a prior decision of the Joint Committee.

2.   That decision shall specify the conditions associated with the operation of the agreed services under this Agreement and with the services between third countries and the Parties. Article 29(8) of this Agreement shall not apply to this type of decision.

Article 21

Abolition of quantitative restrictions

1.   Without prejudice to more favourable provisions in existing agreements and within the scope of this Agreement, the Parties shall abolish quantitative restrictions and measures having an equivalent effect on the transfer of equipment, supplies, spare parts and other devices when they are necessary for an air carrier to continue to provide air transport services under the conditions foreseen by this Agreement.

2.   The obligation referred to in paragraph 1 of this Article shall not preclude the Parties from prohibiting or imposing restrictions on such transfers justified on the grounds of public policy or public security, of the protection of health and life of humans, animals or plants, or of the protection of intellectual, industrial and commercial property. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.

Article 22

Commercial opportunities

Doing business

1.

The Parties agree that obstacles to doing business encountered by commercial operators would hamper the benefits to be achieved by this Agreement. The Parties therefore agree to engage in an effective and reciprocal process to remove obstacles to doing business encountered by commercial operators of both Parties where such obstacles may hamper commercial operations, create distortions to competition or hamper the development of a level playing field.

2.

The Joint Committee shall develop a process of cooperation in relation to doing business and commercial opportunities, shall monitor progress in effectively addressing obstacles to doing business encountered by commercial operators and shall regularly review developments, including, if necessary, those concerning legislative and regulatory changes. In accordance with Article 29 of this Agreement, a Party may request a meeting of the Joint Committee to discuss any question related to the application of this Article.

Air carrier representatives

3.

The air carriers of each Party shall have the right to establish offices in the territory of the other Party for the promotion and sale of air transport and related activities, including the right to sell and to issue any ticket and/or air waybill, both its own tickets and/or air waybills of any other carrier.

4.

The air carriers of each Party shall be entitled, in accordance with the laws and regulations of the other Party relating to entry, residence and employment, to bring in and maintain in the territory of the other Party managerial, sales, technical, operational and other specialist staff who are required to support the provision of air transport. These staff requirements may, at the option of the air carriers, be satisfied by its own personnel or by using the services of any other organisation, company or air carrier operating in the territory of the other Party, authorised to perform such services in the territory of that Party. Both Parties shall facilitate and expedite the granting of employment authorisations, where required, for personnel employed in the offices according to this paragraph, including those performing certain temporary duties not exceeding 90 days, subject to the relevant laws and regulations in force.

Ground handling

5.

Subject to the transitional provisions set out in Annex III to this Agreement:

(a)

without prejudice to point (b), each air carrier shall have in relation to ground handling in the territory of the other Party:

(i)

the right to perform its own ground handling ("self-handling"); or

(ii)

the right to select among competing suppliers that provide ground handling services in whole or in part where such suppliers are allowed market access on the basis of the laws and regulations of each Party, and where such suppliers are present in the market;

(b)

for baggage handling, ramp handling, fuel and oil handling, and freight and mail handling as regards the physical handling of freight and mail between the air terminal and the aircraft, the rights under point (a)(i) and (ii) may be subject to constraints according to the laws and regulations applicable in the territory of the other Party. Where such constraints preclude self-handling and where there is no effective competition between suppliers that provide ground handling services, all such services shall be available on both an equal and non-discriminatory basis to all air carriers;

(c)

any ground handling provider of each Party, whether an air carrier or not, shall have in relation to ground handling in the territory of the other Party the right to provide ground handling services for air carriers of the Parties operating at the same airport, where authorised and consistent with applicable laws and regulations.

Allocation of slots at airports

6.

The allocation of available slots at the airports in the territories of the Parties shall be carried out in an independent, transparent, non-discriminatory and timely manner.

Sales, local expenses and transfer of funds

7.

Any air carrier of each Party may engage in the sale of air transportation and related services in the territory of the other Party directly and/or, at the air carrier's discretion, through its sales agents, other intermediaries appointed by the air carrier, through another air carrier or through the internet. Each air carrier shall have the right to sell such transportation and related services, and any person shall be free to purchase such transportation and services, in the currency of that territory or in freely convertible currencies in accordance with the local currency legislation.

8.

Each air carrier shall have the right to convert into freely convertible currencies and remit local revenues from the territory of the other Party to its home territory or to the country or countries of its choice according to the applicable legislation. Conversion and remittance shall be permitted promptly without restrictions or taxation in respect thereof at the official rate of exchange applicable to current transactions and remittance on the date the carrier makes the initial application for remittance.

9.

The air carriers of each Party shall be permitted to pay for local expenses, including purchases of fuel, in the territory of the other Party in national currency. At their discretion, the air carriers of each Party may pay for such expenses in the territory of the other Party in freely convertible currencies in accordance with local currency legislation.

Cooperative arrangements

10.

In operating or holding out services under this Agreement, any air carrier of a Party may enter into cooperative marketing arrangements, such as blocked-space agreements or code-sharing arrangements, with:

(a)

any air carrier or carriers of the Parties;

(b)

any air carrier or carriers of a third country; and

(c)

any surface (land or maritime) transport provider,

provided that: (i) the operating carrier holds the appropriate authority; (ii) the marketing carriers hold the appropriate route rights within the relevant bilateral provisions and (iii) the arrangements meet the requirements relating to safety and competition normally applied to such arrangements. In respect of passenger transport sold involving code-shares, the purchaser shall be informed at the point of sale, or in any case at check-in, or on boarding where no check-in is required for a connecting flight, which transportation providers will operate each sector of the service.

Intermodal transportation

11.

In relation to the transport of passengers, surface transport providers shall not be subject to laws or regulations governing air transport on the sole basis that such surface transport is held out by an air carrier under its own name. Surface transport providers have the discretion to decide whether to enter into cooperative arrangements. In deciding on any particular arrangement, surface transport providers may consider, among other things, consumer interests and technical, economic, space, and capacity constraints.

12.

Without prejudice to applicable laws and regulations requirements and notwithstanding any other provision of this Agreement, air carriers and indirect providers of cargo transport of the Parties shall be permitted, without restriction, to employ in connection with international air transport under the same air waybill any surface transport for cargo to or from any points in the territories of Ukraine and the European Union or in third countries including transport to and from all airports with customs facilities, and including, where applicable, the right to transport cargo in bond. Such cargo, whether moving by surface or by air, shall have access to airport customs processing and facilities. Air carriers may elect to perform their own surface transport or to provide it through arrangements with other surface carriers, including surface transport operated by other air carriers and indirect providers of cargo air transport. Such intermodal cargo services may be offered at a single, through price for the air and surface transport combined, provided that shippers are not misled as to the facts concerning such transport.

For the purposes of the first subparagraph of this paragraph, "surface transport" shall include both land and maritime transportation.

Leasing

13.

The air carriers of each Party shall be entitled to provide the agreed services using aircraft with or without crew leased from any air carrier, including from third countries, provided that all participants in such arrangements meet the conditions prescribed under the laws and regulations normally applied by the Parties to such arrangements.

Neither Party shall require the air carriers leasing out their equipment to hold traffic rights under this Agreement.

The leasing with crew (wet-leasing) by an air carrier of Ukraine of an aircraft of an air carrier of a third country, or by an air carrier of the European Union of an aircraft of an air carrier of a third country, other than those mentioned in Annex V to this Agreement, in order to exploit the rights set out in this Agreement, shall remain exceptional or meet temporary needs. It shall be submitted for prior approval to the licensing authority of the air carrier which is the lessee of the wet-leased aircraft and to the competent authority of the other Party.

Franchising, branding and commercial concession arrangements

14.

The air carriers of each Party shall be entitled to enter into franchising, branding or commercial concession arrangements with companies, including air carriers, of either Party or third countries provided that the air carriers hold the appropriate authority and meet the conditions prescribed under the laws and regulations applied by the Parties to such arrangements, particularly those requiring the disclosure of the identity of the air carrier operating the service.

Night-stops

15.

The air carriers of each Party shall have the right to make night-stops at airports of the other Party that are open to international traffic.

Article 23

Customs duties and taxation

1.   On arriving in the territory of one Party, aircraft operated in international air transport by the air carriers of the other Party, their regular equipment, fuel, lubricants, consumable technical supplies, ground equipment, spare parts (including engines), aircraft stores (including but not limited to such items as food, beverages and liquor, tobacco and other products destined for sale to or use by passengers in limited quantities during flight) and other items intended for or used solely in connection with the operation or servicing of aircraft engaged in international air transport shall be exempt, on the basis of reciprocity, under its relevant applicable legislation, from all import restrictions, property taxes and capital levies, customs duties, excise duties and similar fees and charges that are:

(a)

imposed by the national or local authorities or the European Union; and

(b)

not based on the cost of services provided, provided that such equipment and supplies remain on board the aircraft.

2.   The following shall also be exempt, on the basis of reciprocity, under relevant applicable legislation of a Party, from the taxes, levies, duties, fees and charges referred to in paragraph 1 of this Article, with the exception of charges based on the cost of the service provided:

(a)

aircraft stores introduced into or supplied in the territory of a Party and taken on board, within reasonable limits, for use on outbound aircraft of an air carrier of the other Party engaged in international air transport, including in cases where such stores are to be used on a part of the journey performed over that territory;

(b)

ground equipment and spare parts (including engines) introduced into the territory of a Party for the servicing, maintenance or repair of aircraft of an air carrier of the other Party used in international air transport;

(c)

fuel, lubricants and consumable technical supplies introduced into or supplied in the territory of a Party for use in or on an aircraft of an air carrier of the other Party engaged in international air transport, including in cases where such supplies are to be used on a part of the journey performed over that territory;

(d)

printed material, as provided for by the customs legislation of each Party, introduced into or supplied in the territory of a Party and taken on board for use on outbound aircraft of an air carrier of the other Party engaged in international air transport, including in cases where such material are to be used on a part of the journey performed over that territory; and

(e)

safety and security equipment for use at airports or cargo terminals.

3.   Notwithstanding any other provision to the contrary, nothing in this Agreement shall prevent a Party from imposing taxes, levies, duties, fees or charges on fuel supplied in its territory on a non-discriminatory basis for use in an aircraft of an air carrier that operates between two points in its territory.

4.   Equipment and supplies referred to in paragraphs 1 and 2 of this Article may be required to be kept under the supervision or control of the appropriate authorities and not to be transferred without payment of relevant customs duties and taxes.

5.   The exemptions provided for by this Article shall also be available where the air carriers of one Party have contracted with another air carrier which similarly enjoys such exemptions from the other Party for the loan or transfer in the territory of the other Party of the items specified in paragraphs 1 and 2 of this Article.

6.   Nothing in this Agreement shall prevent either Party from imposing taxes, levies, duties, fees or charges on goods sold other than for consumption on board to passengers during a sector of an air service between two points within its territory at which embarkation or disembarkation is permitted.

7.   Baggage and cargo in direct transit across the territory of a Party shall be exempt from taxes, customs duties, fees and other similar charges that are not based on the cost of the service provided.

8.   The regular airborne equipment, as well as the material and supplies normally retained on board the aircraft of an air carrier of either Party, may be unloaded in the territory of the other Party only with the approval of the customs authorities of that territory. In such case, they may be placed under the supervision of the said authorities up to such time as they are re-exported or otherwise disposed of in accordance with customs regulations.

9.   The stipulations of this Agreement shall not affect the field of VAT, with the exception of turnover tax on imports. The provisions of this Agreement shall not affect the provisions of any convention between a Member State and Ukraine for the avoidance of double taxation on income and on capital that may be in force at the relevant time.

Article 24

User charges for airports and aviation facilities and services

1.   Each Party shall ensure that user charges that may be imposed by its competent charging authorities or bodies on the air carriers of the other Party for the use of air navigation and air traffic control, airport, aviation security and related facilities and services are just, reasonable, not unjustly discriminatory, and equitably apportioned among categories of users. Without prejudice to Article 9 of this Agreement, these charges may reflect, but shall not exceed, the full cost to the competent charging authorities or bodies of providing the appropriate airport and aviation security facilities and services at that airport or within that airport's system. These charges may include a reasonable return on assets, after depreciation. Facilities and services for which user charges are made shall be provided on an efficient and economic basis. In any event, these charges shall be imposed on the air carriers of the other Party on terms not less favourable than the most favourable terms available to any other air carrier at the time the charges are assessed. User charges shall be established by the competent charging authorities or bodies of the Parties in national or foreign currency.

2.   Each Party shall encourage or require consultations in accordance with the existing applicable legislation, between the competent charging authorities or bodies in its territory and the air carriers and/or their representative bodies using the services and facilities, and shall ensure that the competent charging authorities or bodies and the air carriers or their representative bodies exchange such information as may be necessary to permit an accurate review of the reasonableness of the user charges in accordance with the principles of paragraph 1 of this Article. Each Party shall ensure that the competent charging authorities or bodies provide users with reasonable notice of any proposal for changes in user charges in order to enable those authorities to consider the views expressed by the users before changes are made.

Article 25

Pricing

1.   The Parties shall permit the air carriers to freely establish prices on the basis of free and fair competition.

2.   The Parties shall not require prices to be filed or notified.

3.   If the competent authorities of either Party believe that any price is inconsistent with the considerations set out in this Article, they shall send appropriate notice to the competent authorities of the other Party concerned and may request consultations with these authorities. Consultations between the competent authorities may be held on matters such as prices which may be unjust, unreasonable, discriminatory or subsidised. Such consultations shall be held not later than 30 days after the date of receipt of the request.

Article 26

Competitive environment

1.   Within the scope of this Agreement, Title IV of the Association Agreement or any successor agreement between the European Union, its Member States and Ukraine shall apply, except where more specific rules on competition and State aid for the aviation sector are included in this Agreement.

2.   The Parties acknowledge that it is their joint objective to have a fair and competitive environment for the operation of air services. The Parties recognise that fair competitive practices by air carriers are most likely to occur where these air carriers operate on a fully commercial basis and are not subsidised.

3.   State aid which distorts or threatens to distort competition by favouring certain companies or undertakings or certain aviation products or services, is incompatible with the proper functioning of this Agreement, insofar as it may affect trade between the Parties in the aviation sector.

4.   As regards State aid, any practices contrary to this Article shall be assessed on the basis of criteria arising from the application of the competition rules applicable in the European Union and in particular the ones specified in Annex VII to this Agreement.

5.   If one Party finds that conditions exist in the territory of the other Party, in particular due to a subsidy, which would adversely affect the fair and equal opportunity of its air carriers to compete, it may submit observations to the other Party. Furthermore, it may request a meeting of the Joint Committee, as provided for in Article 29 of this Agreement. From the receipt of such a request, consultations shall start within 30 days. Failure to reach a satisfactory agreement within 30 days from the start of consultations shall constitute grounds for the Party that requested the consultations to take action to refuse, revoke, suspend or limit the authorisations of the air carrier(s) concerned, in accordance with Article 19 of this Agreement.

6.   The actions, referred to in paragraph 5 of this Article, shall be appropriate, proportionate and restricted with regard to scope and duration to what is strictly necessary. They shall be exclusively directed towards the air carrier or air carriers benefiting from a subsidy or the conditions referred to in this Article, and shall be without prejudice to the right of either Party to take action under Article 31 of this Agreement.

7.   Each Party, upon notification to the other Party, may approach responsible government entities in the territory of the other Party including entities at the State, provincial or local level to discuss matters relating to this Article.

8.   Nothing in this Agreement shall limit or jeopardise the power of the competition authorities of the Parties in that all matters relating to the enforcement of competition law fall under their exclusive competence. Any action taken pursuant to this Article shall be without prejudice to actions taken by these authorities, which shall be fully independent from actions taken pursuant to this Article.

9.   This Article shall apply without prejudice to the Parties' laws and regulations regarding public service obligations in the territories of the Parties.

10.   The Parties shall exchange information taking into account the limitations imposed by the requirements of professional and business confidentiality.

Article 27

Statistics

1.   Each Party shall provide the other Party with statistics that are required by domestic laws and regulations and, upon request, other available statistical information as may be reasonably required for the purpose of reviewing the operation of the air services.

2.   The Parties shall cooperate in the framework of the Joint Committee to facilitate the exchange of statistical information between them for the purpose of monitoring the development of air services under this Agreement.

TITLE IV

INSTITUTIONAL PROVISIONS

Article 28

Interpretation and enforcement

1.   The Parties shall take all appropriate measures, whether general or specific, to ensure fulfilment of the obligations arising out of this Agreement and shall refrain from any measures which would jeopardise attainment of the objectives of this Agreement.

2.   Each Party shall be responsible, in its own territory, for the proper enforcement of this Agreement. Ukraine shall be responsible as well for the implementation of its legislation adopted with the aim of incorporating into its legal system the requirements and standards of the European Union acts relating to civil aviation referred to in Annex I to this Agreement.

3.   Each Party shall give the other Party all necessary information and assistance in relation to investigations on possible infringements of provisions of this Agreement which the other Party carries out under its respective competences as provided for in this Agreement.

4.   Whenever the Parties act under the powers granted to them by this Agreement on matters which are of substantial interest to the other Party and which concern the authorities or companies or undertakings of the other Party, the competent authorities of the other Party shall be fully informed and given the opportunity to comment before a final decision is taken.

5.   Insofar as the provisions of this Agreement and the provisions of the acts specified in Annex I to this Agreement are identical in substance to corresponding rules of the EU Treaties and to acts adopted pursuant to the EU Treaties, those provisions shall, in their implementation and application, be interpreted in conformity with the relevant rulings and decisions of the Court of Justice of the European Union, hereinafter referred to as "the Court of Justice", and the European Commission respectively.

Article 29

Joint Committee

1.   A Joint Committee composed of representatives of the Parties is hereby established and shall be responsible for the administration of this Agreement and shall ensure its proper implementation. For this purpose it shall make recommendations and take decisions where expressly provided for by this Agreement.

2.   The decisions of the Joint Committee shall be adopted by consensus and be binding upon the Parties. They shall be put into effect by the Parties, in accordance with their internal procedures. The Parties will inform each other of the finalisation of such procedures and the date of entry into force of the decisions. Whenever a decision taken by the Joint Committee contains a requirement for action to be taken by a Party, that Party shall take the necessary measures and inform the Joint Committee thereof.

3.   The Joint Committee shall adopt, by a decision, its rules of procedure.

4.   The Joint Committee shall meet as and when necessary at the request of a Party.

5.   A Party may also request a meeting of the Joint Committee to seek to resolve any question relating to the interpretation or application of this Agreement. Such a meeting shall take place at the earliest possible date, but not later than two months from the date of receipt of the request, unless otherwise agreed by the Parties.

6.   For the purpose of the proper implementation of this Agreement, the Parties shall exchange information and, at the request of either Party, shall hold consultations within the Joint Committee.

7.   If, in the view of one of the Parties, a decision of the Joint Committee is not properly implemented by the other Party, the former Party may request that the issue be discussed by the Joint Committee. If the Joint Committee cannot solve the issue within two months of its referral, the requesting Party may take appropriate safeguard measures under Article 31 of this Agreement.

8.   Without prejudice to paragraph 2 of this Article, if the Joint Committee does not take a decision on an issue which has been referred to it within six months of the date of referral, the Parties may take appropriate temporary safeguard measures under Article 31 of this Agreement.

9.   In accordance with Article 20 of this Agreement, the Joint Committee shall examine questions relating to bilateral investments of majority ownership, or changes in the effective control of air carriers of the Parties.

10.   The Joint Committee shall also develop cooperation between the Parties by:

(a)

reviewing market conditions affecting air services under this Agreement;

(b)

addressing and as far as possible effectively resolve "doing business" issues that may, inter alia, hamper market access and smooth operation of agreed services under this Agreement as a means to ensure a level playing field, regulatory convergence and minimising the regulatory burden of commercial operators;

(c)

fostering expert-level exchanges on new legislative or regulatory initiatives and developments, as well as the adoption of new instruments of international public and private aviation law, in particular in the fields of security, safety, the environment, aviation infrastructure (including slots), airports, industrial cooperation, air traffic management, competitive environment and consumer protection;

(d)

regularly examining the social effects of this Agreement as it is implemented, in particular in the area of employment and developing appropriate responses to concerns found to be legitimate;

(e)

considering potential areas for the further development of this Agreement, including the recommendation of amendments to this Agreement;

(f)

agreeing, on the basis of consensus, on proposals, approaches or documents of a procedural nature directly related to the functioning of this Agreement;

(g)

considering and developing technical assistance in the areas covered by this Agreement; and

(h)

fostering cooperation in relevant international fora and endeavour to establish coordinated positions.

Article 30

Dispute resolution and arbitration

1.   If any dispute arises between the Parties relating to the interpretation or application of this Agreement, they shall in the first place endeavour to settle it through formal consultations within the Joint Committee in accordance with Article 29(5) of this Agreement. In cases where the Joint Committee takes decisions under this procedure concerning the interpretation or application of requirements and standards referred to in Annex I to this Agreement, such decisions shall respect the rulings of the Court of Justice relating to the interpretation of the pertinent requirements and standards, as well as the decisions of the European Commission which are taken under the terms of the corresponding requirements and standards.

2.   Either Party may refer any dispute relating to the application or interpretation of this Agreement which it has not been possible to resolve in accordance with paragraph 1 of this Article to an arbitration panel of three arbitrators in accordance with the following procedure:

(a)

each Party shall appoint an arbitrator within 60 days from the date of reception of the notification for the request for arbitration by the arbitration panel addressed by the other Party through diplomatic channels; the third arbitrator should be appointed by the other two arbitrators within 60 additional days. If one of the Parties has not appointed an arbitrator within the agreed period, or if the third arbitrator is not appointed within the agreed period, each Party may request the President of the ICAO Council to appoint an arbitrator or arbitrators, whichever is applicable. If the President of the ICAO Council is of the same nationality as one of the Parties, the most senior Vice President of the ICAO Council who is not disqualified on that ground shall make the appointment;

(b)

the third arbitrator appointed under the terms of point (a) shall be a national of a third State and shall act as a President of the arbitration panel;

(c)

the arbitration panel shall agree its rules of procedure; and

(d)

subject to the final decision of the arbitration panel, the initial expenses of the arbitration shall be shared equally by the Parties.

3.   At the request of a Party the arbitration panel may order the other Party to implement interim relief measures pending the panel's final decision.

4.   Any provisional decision or final decision of the arbitration panel shall be binding upon the Parties. The arbitration panel shall seek to adopt any provisional decision or final decision by consensus. Where consensus is not possible, it shall adopt its decisions by majority voting.

5.   If one of the Parties does not act in conformity with a decision of the arbitration panel taken under the terms of this Article within 30 days from the date of receipt of the notification of the aforementioned decision, the other Party may, for as long as this failure endures, limit, suspend or revoke the rights or privileges which it had granted under the terms of this Agreement from the Party at fault.

Article 31

Safeguard measures

1.   Without prejudice to Articles 7 and 8 of this Agreement and to the safety and security assessments mentioned in Annex III to this Agreement, a Party may take appropriate safeguard measures if it considers that the other Party has failed to fulfil an obligation under this Agreement. Safeguard measures shall be restricted with regard to their scope and duration to what is strictly necessary in order to remedy the situation or maintain the balance of this Agreement. Priority shall be given to such measures that will least disturb the functioning of this Agreement.

2.   A Party which is considering taking safeguard measures shall without delay notify the other Party through the Joint Committee and shall provide all relevant information.

3.   The Parties shall immediately enter into consultations in the Joint Committee with a view to finding a commonly acceptable solution.

4.   Without prejudice to Articles 7 and 8 of this Agreement, the Party concerned may not take safeguard measures until one month has elapsed after the date of notification under paragraph 2 of this Article, unless the consultation procedure under paragraph 3 of this Article has been concluded before the expiry of the stated time limit.

5.   The Party concerned shall, without delay, notify the measures taken to the Joint Committee and shall provide all relevant information.

6.   Any action taken under the terms of this Article shall be suspended, as soon as the Party at fault satisfies the provisions of this Agreement.

Article 32

Disclosure of information

The representatives, delegates and experts of the Parties, as well as other officials acting under this Agreement, shall be required, even after their duties have ceased, not to disclose to third parties information covered by the obligation of professional confidentiality, in particular relevant security information and information about companies or undertakings, their business relations or their cost components.

Article 33

Transitional arrangements

1.   Annex III to this Agreement establishes the transitional arrangements and corresponding transitional periods applying between the Parties.

2.   The gradual transition of Ukraine to the effective implementation of the requirements and standards of the European Union acts relating to civil aviation referred to in Annex I to this Agreement and the fulfilment of the conditions under Annex III to this Agreement shall be subject to assessments, which shall be carried out by the European Commission in cooperation with Ukraine and, as regards aviation safety standardisation inspections carried out by the EASA, in accordance with the requirements and standards specified in Annex I, Part C, to this Agreement.

When Ukraine is satisfied that the relevant legislative requirements and standards are incorporated in the Ukrainian legislation and implemented, it shall inform the European Commission that an assessment should be carried out.

3.   If the European Commission determines that Ukraine fulfils the relevant requirements and standards, it shall submit the matter to the Joint Committee for it to take a decision that Ukraine qualifies for passing to the next transitional period or complies with all these requirements.

4.   If the European Commission determines that Ukraine does not fulfil the relevant requirements and standards, it shall so report to the Joint Committee. The European Commission shall thereafter recommend to Ukraine specific improvements and determine, in consultation with Ukraine, an implementing period within which the relevant deficiencies can reasonably be addressed. Before the end of the implementing period, a second and, if necessary, further assessments shall be made whether the recommended improvements have effectively and satisfactorily been implemented.

5.   If the European Commission determines that the relevant deficiencies have been addressed, it shall submit the matter to the Joint Committee to decide accordingly and as stipulated in paragraph 3 of this Article.

Article 34

Relationship to other agreements and/or arrangements

1.   The provisions of this Agreement shall prevail over the relevant provisions of the bilateral air transport agreements and/or arrangements between the Parties.

2.   Notwithstanding paragraph 1 of this Article, the provisions concerning ownership, traffic rights, capacity, frequencies, type or change of aircraft, code-sharing and pricing of a bilateral agreement or arrangement between Ukraine and the European Union or an EU Member State, shall apply between the Parties if such bilateral agreement and/or arrangement is more favourable, in terms of freedom for the air carriers concerned, or otherwise more favourable and provided that there is no discrimination between EU Member States and their nationals. The same applies for provisions that are not covered by this Agreement.

3.   If the Parties become parties to a multilateral agreement or endorse a decision adopted by the ICAO or another international organisation that addresses matters covered by this Agreement, they shall consult in the Joint Committee to determine whether this Agreement should be revised to take into account such developments.

Article 35

Financial provisions

Without prejudice to point (b) of Article 5(1) of this Agreement, the Parties shall allocate necessary financial resources, including related to the Joint Committee, for the implementation of this Agreement in their respective territories.

TITLE V

ENTRY INTO FORCE, REVIEW, TERMINATION AND FINAL PROVISIONS

Article 36

Amendments

1.   The Joint Committee may, upon the proposal of one Party and in accordance with this Article, decide by consensus to modify the Annexes to this Agreement as provided for in point (a) of Article 15(3) of this Agreement.

2.   Amendments to the Annexes to this Agreement shall enter into force after completion by the Parties of the necessary internal procedures.

3.   At the request of any Party and in accordance with the relevant procedures, taking into account possible recommendations by the Joint Committee, this Agreement shall be reviewed in the light of the application of its provisions, in order to consider any necessary future development. Any resulting amendment of this Agreement shall enter into force as provided for in Article 38 of this Agreement.

Article 37

Termination

Either Party may, at any time, give notice in writing, through diplomatic channels, to the other Party of its decision to terminate this Agreement. Such notice shall be sent simultaneously to the ICAO. This Agreement shall terminate at midnight GMT at the end of the International Air Transport Association traffic season in effect one year following the date of written notification of termination, unless the notice is withdrawn by mutual agreement of the Parties before the expiry of this period.

Article 38

Entry into force and provisional application

1.   This Agreement shall be subject to ratification or approval by the signatories in accordance with their own procedures.

2.   This Agreement shall enter into force on the first day of the second month after the date of the last note of the exchange of diplomatic notes between the Parties confirming that all necessary procedures for entry into force of this Agreement have been completed. For the purpose of this exchange, Ukraine shall deliver to the General Secretariat of the Council of the European Union its diplomatic note to the European Union and its Member States and the General Secretariat of the Council of the European Union shall deliver to Ukraine the diplomatic note from the European Union and its Member States. The diplomatic note from the European Union and its Member States shall contain communications from each Member State confirming that its necessary procedures for entry into force of this Agreement have been completed.

3.   Notwithstanding paragraph 2 of this Article, the Parties agree to provisionally apply this Agreement, in accordance with their internal procedures or national legislation, as applicable, from the first day of the month following the date of the latest note by which the Parties have notified each other of the completion of the relevant national procedures to provisionally apply or as the case may be to conclude this Agreement.

4.   The Secretary-General of the Council of the European Union shall act as the depositary of this Agreement.

Article 39

Registration with the ICAO and the United Nations Secretariat

This Agreement and all amendments thereto shall be registered by Ukraine with the ICAO and with the United Nations Secretariat, in accordance with Article 102 of the Charter of the United Nations, following its entry into force.

Article 40

Authentic texts

This Agreement shall be drawn up in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Ukrainian languages, each text being equally authentic.

IN WITNESS WHEREOF the undersigned Plenipotentiaries, duly authorised to this effect, have signed this Agreement.

Съставено в Киев на дванадесети октомври две хиляди двадесет и първа година.

Hecho en Kiev, el doce de octubre de dos mil veintiuno.

V Kyjevě dne dvanáctého října dva tisíce dvacet jedna.

Udfærdiget i Kiev den tolvte oktober to tusind og enogtyve.

Geschehen zu Kiew am zwölften Oktober zweitausendeinundzwanzig.

Kahe tuhande kahekümne esimese aasta oktoobrikuu kaheteistkümnendal päeval Kiievis.

Έγινε στο Κίεβο, στις δώδεκα Οκτωβρίου δύο χιλιάδες είκοσι ένα.

Done at Kyiv on the twelfth day of October in the year two thousand and twenty one.

Fait à Kiev, le douze octobre deux mille vingt et un.

Arna dhéanamh i gCív, an dóú lá déag de Dheireadh Fómhair an bhliain dhá mhíle fiche agus haon.

Sastavljeno u Kijevu dvanaestog listopada godine dvije tisuće dvadeset prve.

Fatto a Kiev, addì dodici ottobre duemilaventuno.

Kijevā, divi tūkstoši divdesmit pirmā gada divpadsmitajā oktobrī.

Priimta du tūkstančiai dvidešimt pirmų metų spalio dvyliktą dieną Kijeve.

Kelt Kijevben, a kétezer-huszonegyedik év október havának tizenkettedik napján.

Magħmul f'Kiev, fit-tnax-il jum ta’ Ottubru fis-sena elfejn u wieħed u għoxrin.

Gedaan te Kiev, twaalf oktober tweeduizend eenentwintig.

Sporządzono w Kijowie dnia dwunastego października roku dwa tysiące dwudziestego pierwszego.

Feito em Kiev, em doze de outubro de dois mil e vinte e um.

Întocmit la Kiev la doisprezece octombrie două mii douăzeci și unu.

V Kyjeve dvanásteho októbra dvetisícdvadsaťjeden.

V Kijevu, dne dvanajstega oktobra leta dva tisoč enaindvajset.

Tehty Kiovassa kahdentenatoista päivänä lokakuuta vuonna kaksituhattakaksikymmentäyksi.

Som skedde i Kiev den tolfte oktober år tjugohundratjugoett.

Учинено в Києвi дванадцятого жовтня двi тисячi двадцять першого року.

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