KAZAKHSTAN: CIVIL AVIATION COMMITTEE SUGGESTS NEGOTIATIONS

UNCLAS ASTANA 001842

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR SCA/CEN (O'MARA),PM/SNA (LOFTIS)

E.O. 12958: N/A
TAGS: EAIR MARR MOPS PREL KZ
SUBJECT: KAZAKHSTAN: CIVIL AVIATION COMMITTEE SUGGESTS NEGOTIATIONS
ON STATE AIRCRAFT FEES AGREEMENT

REF: Astana 1220 and previous


1. (SBU) Summary: The two Kazakhstani entities with the greatest
interest in concluding a State Aircraft Fees Agreement with the
U.S., the Civil Aviation Committee and KazAeroNavigatsiya, believe
that the time is ripe for a U.S. negotiating team to come to Astana
to conclude negotiations and initial the text. Post agrees that
bringing a U.S. delegation would help speed up the sclerotic
Kazakhstani interagency review process. End summary.


2. (SBU) Pol-Econ Chief, Econoff, and Economic Specialist met on
July 2 with Radilbek Adimolda, Deputy Chairman of the Civil Aviation
Committee of the Ministry of Transport and Communications, to
discuss the current status of negotiations on the State Aircraft
Fees Agreement (SAFA). Marat Dautaliyev, KazAeroNavigatsiya's
Astana-based Deputy General Director, also participated in the
meeting.


3. (SBU) Adimolda confirmed that the MFA had circulated the draft
SAFA text for interagency review, and that many of the relevant
ministries had already submitted their comments. The Ministry of
Defense has no objections to the current language of the agreement.
The Ministry of Economy and Budget Planning objected to the
reference to commercial aircraft in Article I (which Adimolda
acknowledged was added specifically to address Kazakhstani
concerns). The Agency for Regulation of Natural Monopolies (ARNM),
which regulates KazAeroNavigatsiya, opposed waiving the fees
retroactively and wanted some part of the GOK to make up for the
financial "gap" created by exemptions for U.S. state aircraft.
Adimolda indicated that once all the comments were in, the relevant
ministries would meet to decide which objections had merit and
should be conveyed formally to the U.S.


4. (SBU) Adimolda said that he sees a need for engagement between a
U.S. delegation and a GOK interagency working group headed by a Vice
Minister of Transport and Communications. The delegations, he
added, should be of high enough level to be able to make decisions
and initial the agreement. It would then need to be sent for final
interagency review, signed, and ratified. Adimolda remarked that
additional information regarding how the U.S. has resolved this
issue with other CIS countries would be helpful in garnering support
for the agreement.


5. (SBU) Comment: Post believes that sending a USG delegation to
Astana with the authority to initial an agreement would give
additional impetus to the Kazakhstani review process and bring us
closer to resolving the long-standing aircraft fees issue. End
comment.

MILAS