Russia threatens to block airspace in response to sanctions

Moscow's threat follows ban on food imports from the United States and European Union in response to sanctions aimed at changing its policy on Ukraine.

MOSCOW // Russia’s prime minister warned yesterday that Russia could block overflights between Europe and Asia in retaliation for Western sanctions.

Dmitry Medvedev said the Russian government was considering a series of measures in response to Western sanctions that shut down the country’s first low-cost airline.

“First is a ban on using the airspace of our country for transit flights by European and US airlines in the ... Asia-Pacific region,” said Mr Medvedev.

“Of course this is a severe measure. Nevertheless, we need to mention it.”

Mr Medvedev made the threat as he ordered bans on major food products from the European Union and United States in response to their sanctions over Russian policy in Ukraine.

Aeroflot’s low-cost subsidiary Dobrolet which flew to Crimea, annexed by Russia in March, said at the weekend it was forced to ground all of its flights because of EU sanctions hitting its leases for Boeing aircraft.

The ban could hurt European airlines such as Lufthansa, British Airways, Air France and Finnair that operate many long-haul routes to Asia.

Bank of America Merrill Lynch estimated this week that using other longer routes could add about €22,400 (Dh110,000) per flight in higher fuel and operating costs.

It also noted that Russia’s top airline Aeroflot, which receives the fees gathered from European airlines for the overflight rights, would be sent into a financial tailspin by such a ban.

The US and the EU have accused Russia, which annexed Ukraine’s Crimean Peninsula in March, of supplying arms and expertise to a pro-Moscow insurgency in eastern Ukraine, and have sanctioned individuals and companies in Russia in retaliation. Moscow denies supporting the rebels and accuses the West of blocking attempts at a political settlement by encouraging Kiev to use brutal force to crush the insurgency.

The food bans were an unexpectedly sweeping move that will cost farmers in North America, Europe and Australia billions of dirhams but will also likely lead to empty shelves in Russian cities.

The ban covers all imports of meat, fish, fruit, vegetables, milk and milk products from the US, the European Union, Australia, Canada and Norway. It will last for one year.

“Until the last moment, we hoped that our foreign colleagues would understand that sanctions lead to a deadlock and no one needs them,” Mr Medvedev said. “But they didn’t, and the situation now requires us to take retaliatory measures.”

That retaliation, however, could hurt Russia as much as the West. Russia depends heavily on imported foodstuffs, most of it from Europe, particularly in Moscow and other large, prosperous cities. In 2013, the EU exported €11.8bn.

* Agence France-Presse with additional reporting by Associated Press