# EUR-Lex - 52014PC0018 - EN

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# 52014PC0018

**Proposal for a COUNCIL DECISION on the signature, on behalf of the European Union, and provisional application of a Common Aviation Area Agreement between the European Union and its Member States and Ukraine /* COM/2014/018 final - 2014/0008 (NLE) */**

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EXPLANATORY MEMORANDUM

1.         Context of the proposal

|| · Grounds for and objectives of the proposal The Common Aviation Area Agreement between the European Union and its Member States and Ukraine has been negotiated by the Commission as authorised by the Council in December 2006. The air services market between the EU and Ukraine is significant. Traffic by air involves more that 4 million passengers (source Eurostat 2012), growing at an average yearly rate of 17% over the past 10 years. Aviation services for cargo are also on the increase, registering a double growth over the same period. It is also worth noting that traffic between the EU and the Ukraine averaged almost 43% of the Ukraine's total international traffic during the last 4 years. Air services between the EU and Ukraine operate at present on the basis of bilateral agreements between individual Member States and Ukraine. It is part of the EU's external aviation policy to negotiate comprehensive air services agreements with neighbouring countries, where the added value and economic benefits of such agreements have been demonstrated. The Agreement aims in particular at: - gradual market opening in terms of access to routes and capacity on a reciprocal basis; - ensuring regulatory convergence and effective compliance by Ukraine with EU aviation related legislation; and - non-discrimination and level playing field for economic operators.

|| · General context The negotiating directives set out the general objective of negotiating a comprehensive air transport agreement with the aim of gradually and reciprocally opening market access and ensuring regulatory convergence and effective implementation of EU requirements and standards. In accordance with the negotiating directives, a draft Agreement with Ukraine was initialled by the two sides on 28 November 2013.

|| · Existing provisions in the area of the proposal The provisions of the Agreement shall prevail over the relevant provisions of the existing bilateral air services agreements between Member States and Ukraine. However, existing traffic rights which originate from these bilateral agreements and which are not covered under this Agreement can continue to be exercised, provided that there is no discrimination between the Member States and their nationals.

|| · Consistency with the other policies and objectives of the Union The conclusion of a comprehensive air transport agreement with Ukraine is an important element in the development of the EU external aviation policy and a crucial component of the EU neighbourhood policy and the creation of a wider European Common Aviation Area, as described in the Commission Communication COM(2012) 556 final on the "EU's External Aviation Policy - Addressing Future Challenges".

2.         Consultation of interested parties and impact assessment In line with Article 218 (4) TFEU the Commission has conducted the negotiations in consultation with a special committee. In addition, it consulted interested parties throughout the process.

|| · Consultation of interested parties

|| Consultation methods, main sectors targeted and general profile of respondents The Commission has consulted with stakeholders, in particular via the Consultative Forum comprising representatives of air carriers, airports and trade unions.

|| Summary of responses and how they have been taken into account All comments from the stakeholders, mainly related to the balance between the opening of the market and the implementation by Ukraine of EU aviation requirements and standards, were duly taken into consideration in the preparation of the Union's negotiating position. The stakeholders have after the finalisation of the negotiations expressed they are keen to see the agreement signed and implemented.

|| · Collection and use of expertise

|| There was no need for external expertise. · Impact Assessment As in the case of other Agreements between the EU and third countries, it is expected that due to the liberalisation of the market between the EU and Ukraine, new routes would be opened between airports of the Parties. New airlines are also expected to enter the market. This evolution would bring about more competition and allow for more choices at better prices for consumers. Besides, this is the first time that such an agreement (unilaterally) grants EU carriers the possibility to carry out stand alone and consecutive cabotage operations in the Ukrainian domestic market. In addition, the implementation by Ukraine of EU aviation requirements and standards in all aspects pertaining to the operation of airlines (for instance regarding safety, air traffic management, security, social standards and environment) will allow the establishment of fair competition conditions for all airlines. Furthermore, the Agreement opens up investment opportunities for the air carriers of the Parties by allowing reciprocal majority ownership, which will facilitate the development of airlines and promote the consolidation of the sector. Also, it will ease various doing-business issues, since it provides for a series of business related prospects aimed at facilitating the operation of airlines, such as code share arrangements, groundhandling, leasing, intermodal transportation, as well as a right for night stops in both Parties' airports. More generally, the EU and Ukraine aviation markets would be progressively largely interconnected and expanded.

3.         Legal elements of the proposal

|| · Summary of the proposed action The Agreement creates equal and uniform conditions for market access for all Union carriers and establishes new arrangements for regulatory co-operation and convergence between the European Union and Ukraine in fields essential for the safe, secure, and efficient operation of air services. Notably, it allows for the extension of its terms to the 28 Member States, applying the same rules without discrimination and benefiting all Union air carriers regardless of their nationality. These carriers will be able to operate freely from any point in the European Union to any point in Ukraine which is currently not the case. The Agreement consists of the main body including the core principles and seven annexes: Annex I on EU applicable requirements and standards; Annex II on agreed services and specified routes; Annex III on transitional provisions; Annex IV on the list of certificates to be recognised; Annex V on the list of States referred to in Articles 17, 19 and 22 and Annexes II and III to the Agreement; Annex VI on procedural rules; and Annex VII on criteria referred to in Article 26, paragraph 4 of the Agreement. · Legal basis

|| Article 100 (2), in conjunction with Article 218 (5) of the Treaty on the Functioning of the European Union.

|| · Choice of instruments Proposed instruments: international agreement Other means would not be adequate for the following reason. External aviation relations can only be given effect through international agreements.

4.         Budgetary implication

|| The proposal has no implication for the Union budget.

2014/0008 (NLE)

Proposal for a

COUNCIL DECISION

on the signature, on behalf of the
European Union, and provisional application of a Common Aviation Area Agreement
between the European Union and its Member States and Ukraine

THE COUNCIL OF THE EUROPEAN UNION

Having regard to the Treaty on the
Functioning of the European Union and in particular Article 100 (2), in
conjunction with Article 218 (5) thereof,

Having regard to the proposal from the
European Commission,

Whereas

(1)       On 12 December 2006, the
Council authorised the Commission to open negotiations. The negotiations were
successfully concluded by the initialling of the Agreement on 28 November 2013;

(2)       The Agreement creates equal
and uniform conditions for market access for all Union carries and establishes
new arrangements for regulatory co-operation and convergence between the European
Union and Ukraine in fields essential for the safe, secure, and efficient
operation of air services;

(3)       Therefore, the Agreement
should be signed on behalf of the Union, subject to its conclusion at a later
date;

(4)       In order to bring about
the benefits of the Agreement as early as possible, it should be applied
provisionally,

HAS ADOPTED
THIS DECISION:

Article 1

1.           The signing of the Common
Aviation Area Agreement between the European Union and its Member States and
Ukraine, is hereby approved on behalf of the Union, subject to the conclusion
of the said Agreement.

The text of the Agreement to be signed is
annexed to this Decision.

Article 2

The Council Secretariat General shall establish the instrument of
full powers to sign the Agreement, subject to its conclusion, for the person(s)
indicated by the negotiator of the Agreement.

Article 3

Pending its entry into force, the Agreement
shall be applied provisionally in accordance with Article 38 of the Agreement from
the date of signature of the Agreement.

Article 4

The European Union shall be represented in the Joint Committee established
under Article 29 of the Agreement by the Commission

Article 5

1.           The Commission shall
represent the Union in dispute settlement proceedings under Article 30 of the
Agreement.

2.           Any appropriate action to
be taken under Article 30 of the Agreement on matters which fall within the Union
competence shall be decided upon by the Commission, in consultation with a
Special Committee of representatives of the Member States appointed by the
Council.

Article 6

This Decision shall enter into force on the
day of its adoption.

Done at Strasbourg,

For
the Council

The
President
                                                                       [...]

ANNEX

Draft Common Aviation Area Agreement
between the European Union and its Member States and Ukraine

to the

Proposal for a Council Decision

on the signature, on behalf of the
European Union, and provisional application of a Common Aviation Area Agreement
between the European Union and its Member States and Ukraine

Draft

COMMON
AVIATION AREA AGREEMENT

BETWEEN THE
EUROPEAN UNION AND ITS MEMBER STATES

AND UKRAINE

THE KINGDOM OF BELGIUM,

THE REPUBLIC OF BULGARIA,

THE REPUBLIC OF CROATIA,

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 ITALIAN REPUBLIC,

THE REPUBLIC OF CYPRUS,

THE REPUBLIC OF LATVIA,

THE REPUBLIC OF LITHUANIA,

THE GRAND DUCHY OF LUXEMBOURG,

HUNGARY,

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,

THE UNITED KINGDOM OF GREAT BRITAIN AND
NORTHERN IRELAND,

Parties to the Treaty on European Union and
the Treaty on the Functioning of the European Union (hereinafter
referred together 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 referred to
as "the Union" or "the European Union", or “the EU” of the one part,

And

UKRAINE of the other part,

all the above mentioned hereinafter
referred to together 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 of
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 and the European Organization for Safety of Air Navigation, as well as 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 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 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 Partnership and
Co-operation Agreement between the European Communities
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 the travelling and shipping public 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 gradual
opening of access to markets
and maximising benefits for the consumers, air carriers, labour, 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 those
provisions contained in the Treaty on European Union and the Treaty
on the Functioning of the European Union (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 that full compliance with the
CAA rules entitle the Parties to reap its full advantages
including opening access to markets and maximising 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;

RECOGNISING the importance of adequate
assistance 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 but not limited to 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 on-going dialogue between the
Parties to deepen their relations in other areas notably
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
Common Aviation Area between the European Union, its Member States and Ukraine, which is founded in particular on identical rules in the areas of safety,
security, air traffic management, environment, consumer protection, computer
reservation systems, as well as with regard to social aspects. For this purpose
this Agreement sets out the rules, technical requirements, administrative
procedures, basic operational standards, implementing rules applicable between
the Parties under the conditions set out also hereafter.

This Common Aviation Area 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 term:

1. 
"Agreed
services" and "Specified routes" mean international air
transport pursuant to Article 16 (Grant of Rights) 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, which,
for the avoidance of doubt, shall include 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 entered 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 Croatia, the former Yugoslav Republic of Macedonia, the Republic of
Iceland, the Republic of Montenegro, the Kingdom of Norway, 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 according to 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:

(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, 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 this air carrier, in accordance with relevant national laws and
regulations, while as regards safety and security the competent authority
maintains appropriate oversight 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, that
is to say, 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, administrative action, or any other form;

21. 
"National"
means:

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

(b)   any legal entity (i) which is owned directly or
through majority ownership and at all times is effectively
controlled by persons or entities having Ukrainian nationality in the case of Ukraine, or persons or entities having the nationality of an EU
Member State or one of the other states listed in Annex V
in the case of the European Union and its Member
States, and (ii) the principal place of business of which is in the case of
Ukraine in Ukraine or in a Member State in the case
of the European Union and its Member 
States;

22. 
"Nationality",
when referred to 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 means 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 their
application is subject;

25. 
"Partnership and
Cooperation Agreement” means Partnership and Cooperation Agreement between the
European Communities and their Member States, and Ukraine, done at Luxemburg on
14 June 1994, 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 this 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 that is the technological
element of the Single European Sky which aims by 2020 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 public body or a regional public
organisation or another public organisation, i.e. when:

(a)   a practice of a government or regional public
body or other public organisation involves a direct
transfer of funds such as grants, loans or equity infusion, 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 or regional body or
other public organisation that is
otherwise due is foregone, not
collected, or unduly diminished;

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

(d)   a government or regional 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 type of functions illustrated under (a), (b) and (c) which would
normally be vested in the government and, in practice, in no real
sense differs from practices normally followed by
governments;

and
where a benefit is thereby conferred.

30. 
"The Parties"
shall mean, on the one hand, the European Union or its Member States, or the
European Union and its Member States, in accordance with their respective
powers, and, on the other hand, Ukraine;

31. 
"Territory” in
relation to Ukraine means 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. The application of this Agreement to Gibraltar airport is
understood to be without prejudice to the respective legal positions of the Kingdom of Spain and the United Kingdom with regard to their dispute over sovereignty over the
territory in which the airport is situated. Such application is determined by
the application of Union legislation to Gibraltar airport. Ukraine shall be
informed of the scope of that application;

32. 
 “Transit Agreement”
means the International Air Services Transit Agreement, done at Chicago on 7 December 1944; and

33. 
"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 case of
overflights), air traffic control, 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 above-mentioned measures
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 Transit Agreement.

3.        In applying the principles of
paragraph 1 of this Article the Parties shall:

(a)   within the scope of this Agreement, 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)   within the scope of this Agreement, restrain
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 referred to 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 EU legislation referred to in paragraph
1 of this Article 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 the 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 (New Legislation) 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 according to the transitional arrangements specified in
Article 33 (Transitional Arrangements) and 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 referred to in Article 29 (Joint Committee)
of this Agreement.

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 Part C of Annex I to this Agreement, under the conditions set out
hereafter.

2.        While
maintaining 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 to
incorporate the requirements and standards referred to in paragraph 1 of this
Article. To this purpose, Ukraine shall be involved in the work of the 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 sub-paragraphs 1(a), (b), (c) and (d)
of Article 16 (Grant of Rights) of this Agreement, each Party shall recognize
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 I 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 thirty
(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 Part C of Annex I 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 Part C of Annex I 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 Part C of Annex I 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 ECAC (European Civil Aviation Conference) 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
(Transitional Arrangements), paragraph 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 of the rights and obligations of Ukraine and the EU Member States under the provisions of 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 (Joint Committee) 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 (Refusal, Revocation, Suspension, Limitation of
Authorisation or Technical Permission) of this Agreement failure to reach a
satisfactory agreement within fifteen (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 fifteen (15) days.

12.      Any
action taken in accordance with the paragraphs 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 Part B of Annex I to this Agreement, under the
conditions set out hereafter.

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 to
incorporate 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 the 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 Council of ICAO. 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 to maximize 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 Part B of Annex I 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 the provisions stipulated in 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 Part D of Annex I to this Agreement, under the conditions set out
hereafter.

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 to incorporate the requirements and standards referred to in paragraph 2 of this Article,
while recognise 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 Part F of Annex I 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 to incorporate 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

COMPUTER
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 computer reservation systems specified in Part G of Annex I
to this Agreement. The Parties
shall guarantee free access by one Party’s computer 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 to
incorporate 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 Part E of Annex I 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 to
incorporate 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
(Non-discrimination) 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; or

(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 Annex II and Annex 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

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:

– 
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; and

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

– 
unless otherwise determined under Article 20 (Investment in
Air Carriers) 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:

– 
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; and

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

– 
unless otherwise
determined under Article 20 (Investment in Air Carriers) of this Agreement, the
air carrier is owned directly or through majority ownership and effectively
controlled by EU Member States and/or by their nationals or by other States
listed in Annex V and/or by their nationals.

(c) the air carrier meets the conditions prescribed
under the laws and regulations referred to in Article 6 (Compliance with Laws
and Regulations) of the Agreement; and

(d) the provisions set forth in Article 7 (Aviation
Safety) and Article 8 (Aviation Security) of this Agreement are being
maintained and administered.

ARTICLE 18

RECIPROCAL RECOGNITION OF REGULATORY
DETERMINATIONS

WITH REGARD
TO AIR CARRIER FINANCIAL FITNESS AND NATIONALITY

1.      Upon 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 financial fitness
and/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 here below.

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 (Authorisation and Technical
Permission) 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 set up under Article 29 (Joint Committee) of this
Agreement.

ARTICLE 19

REFUSAL,
REVOCATION, SUSPENSION, LIMITATION OF 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:

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

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

– 
unless otherwise
determined under Article 20 (Investment in Air Carriers) 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:

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

– 
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

– 
unless otherwise determined
under Article 20 (Investment in Air Carriers) of this Agreement, the air
carrier is not owned, directly or through majority ownership or effectively
controlled by EU Member States and/or their nationals or by the other States
listed in Annex V and/or their nationals.

(c)
the air carrier has failed to comply with the laws and regulations referred to
in Article 6 (Compliance with Laws and Regulations) of this Agreement; or

(d)
the provisions set forth in Article 7 (Aviation Safety) and Article 8 (Aviation
Security) of this Agreement are not being maintained or administered; or

(e)
a Party has made the determination in accordance with Article 26 (Competitive
Environment), paragraph 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 points (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 the present Article to refuse, revoke, suspend or limit 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 (Authorisation and Technical Permission)
and 19 (Refusal, Revocation, Suspension, Limitation of Authorisation or Technical Permission)
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 established by
this Agreement in accordance with Article 29 (Joint Committee) of this
Agreement.

2.      This 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. The provisions of
Article 29 (Joint Committee), paragraph 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 of commercial operators would hamper the benefits to be achieved by
this Agreement. The Parties therefore agree to engage in an effective and
reciprocal process of removal of obstacles to doing business of 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 set up in accordance with
Article 29 (Joint Committee) of this Agreement shall develop a process of
cooperation in relation to doing business and commercial opportunities; shall
monitor progress in effectively addressing obstacles to doing business of
commercial operators and shall regularly review developments, including, if
necessary, towards legislative and regulatory changes. In accordance with
Article 29 (Joint Committee) of this Agreement a Party may request a meeting of
the Joint Committee to discuss any question related to the application of the
present 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, which 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 ninety (90) days, subject to the relevant laws and regulations in
force.

Groundhandling

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

(a)  Without prejudice to point
(b) below, each air carrier shall have in relation to groundhandling in the
territory of the other Party:

(i)          The right to perform its own
groundhandling ("self-handling") or at its option;

(ii)         The right to select among
competing suppliers that provide groundhandling 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 the following categories of groundhandling
services, i.e. baggage handling, ramp handling, fuel and oil handling, 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
groundhandling services, all such services shall be available on both an equal
and non-discriminatory basis to all air carriers.

(c)  Any groundhandling provider of each Party,
whether an air carrier or not, shall have in relation to groundhandling in the
territory of the other Party the right to provide groundhandling 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; and

(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 and (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 and 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.    a)       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.

b)       For
the purposes of subparagraph (a) of this paragraph, surface transportation
shall include both land and maritime transportation.

Leasing

13.    (a)     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.

(b)     Neither Party shall require the air carriers
leasing out their equipment to hold traffic rights under this agreement.

(c)      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/Commercial concession

14.    The air carriers of each Party shall be
entitled to enter into franchising or 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.      There shall also be exempt, on the basis of
reciprocity, under its relevant applicable legislation, 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, even when these stores are
to be used on a part of the journey performed over the said 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, even when these supplies are to be used on a
part of the journey performed over the said territory;

(d)  printed matter, as provided
for by the customs legislation of each Party, introduced into or supplied in
the territory of one Party and taken on board for use on outbound aircraft of
an air carrier of the other Party engaged in international air transport, even
when these stores are to be used on a part of the journey performed over the
said 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 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
materials 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 shall
be just, reasonable, not unjustly discriminatory, and equitably apportioned
among categories of users. Without prejudice to Article 9 (Air traffic
management), 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 assessed 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 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 to enable those
authorities to consider the views expressed by the users before changes are
made.

ARTICLE 25

PRICING

1.      The Parties shall permit prices to be freely
established by the air carriers 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 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, but not limited to prices, which may be unjust,
unreasonable, discriminatory or subsidised. Such consultations shall be held not later than thirty (30)
days after the date of receipt of the request.

ARTICLE 26

COMPETITIVE
ENVIRONMENT

1.      Within the scope of this Agreement, the
provisions of Title VI ("Competition, intellectual, industrial and
commercial property protection and legislative co-operation") of the
Partnership and Co-operation 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 (Joint Committee)
of this Agreement. From the receipt of such a request consultations shall start
within thirty (30) days. Failure to reach a satisfactory agreement within
thirty (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, consistent
with Article 19 (Refusal, Revocation, Suspension or Limitation of Authorisation
or Technical Permission) 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 (Safeguard Measures)
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.      The provisions of 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 to the other Party
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 under Article 29 (Joint Committee) of this Agreement 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 to incorporate 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 the
case of investigations on possible infringements of provisions of this
Agreement, which that other Party carries out under its respective competences
as provided 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 (hereinafter referred to as the Joint Committee) 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 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, this
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 (Safeguard Measures) 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 (Safeguard
Measures) of this Agreement.

9.      In accordance with Article 20 (Investment in
Air Carriers) 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, notably 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 paragraph 5 of Article 29 (Joint Committee)
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, these 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 procedure laid
down hereafter:

(a)   each Party shall appoint
an arbitrator within sixty (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 sixty (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 Council of the ICAO to appoint an arbitrator
or arbitrators, whichever is applicable. If the President of the Council is of the same
nationality as one of the Parties, the most senior Vice President who is not
disqualified on that ground shall make the appointment;

(b)  the third arbitrator
appointed under the terms of paragraph a) above should 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 thirty (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 (Aviation
Safety) and 8 (Aviation Security) and the safety and security assessments
mentioned in the 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 (Aviation
Safety) and 8 (Aviation Security) 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 security relevant 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 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 the Annex I to this Agreement and the fullfilment of conditions under Annex III 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 Part C of Annex I
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 established under Article 29 (Joint Committee) of
this Agreement 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 thereto 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 Article 5 (1) (b) (General Principles of Regulatory
Cooperation) 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 OTHER 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 and as provided for in Article 15 sub-paragraph
3(a) (New Legislation).

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 the provisions of this Agreement shall
enter into force as provided for in Article 38 (Entry into Force and Provisional
Application) 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 one month
after the date of the last note in an 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 and/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.

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.

IN WITNESS WHEREOF the undersigned, being
duly authorised, have signed this Agreement.

Done at .... on the ... day of ... in the year ..., in
duplicate, in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian,
Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian,
Maltese, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish, Swedish and
Ukrainian languages, each text being equally authentic.

_______________________________

ANNEX I

LIST OF
APPLICABLE REQUIREMENTS AND STANDARDS ADOPTED BY THE EUROPEAN UNION IN THE
FIELD OF CIVIL AVIATION TO BE INCORPORATED IN THE LEGISLATION OF UKRAINE

The "Applicable requirements and
standards" of the following European Union acts shall be incorporated into
Ukrainian legislation and deemed to be part of the Agreement and shall be
applicable in accordance with this Agreement and Annex III to this Agreement,
unless otherwise specified thereafter. Where necessary, specific adaptations
for each individual act are set out hereafter.

The applicable requirements and standards
of Acts referred to in this Annex shall be binding upon the Parties and be, or
be made, part of their internal legal order as follows:

(a)       European Union Regulations and Directives
shall be binding upon the European Union and its Member States in accordance
with the EU Treaties;

(b)       A national act of Ukraine adopted with the
aim to implement the provisions of the corresponding European Union Regulations
and Directives shall be legally binding upon Ukraine, while the form and method
of implementation is on disposal of Ukraine.

A. MARKET
ACCESS AND ANCILLARY ISSUES

No 1008/2008

Regulation (EC) No 1008/2008 of the
European Parliament and of the Council of 24 September 2008 on common rules for
the operation of air services in the Community (Recast),

Applicable requirements and standards:
Chapter IV.

No 95/93

Council Regulation (EEC) No 95/93 of 18
January 1993 on common rules for the allocation of slots at Community airports,

as amended by:

Regulation (EC) No 894/2002 of the European
Parliament and of the Council of 27 May 2002 amending Council Regulation (EEC)
No 95/93,

Regulation (EC) No 1554/2003 of the European
Parliament and of the Council of 22 July 2003 amending Council Regulation (EEC)
No 95/93,

Regulation (EC) No 793/2004 of the European
Parliament and of the Council of 21 April 2004 amending Council Regulation
(EEC) No 95/93.

Applicable requirements and standards:
Articles 1 to 12, 14 and 14a (2).

As regards the application of Article
12(2), the term "the Commission" shall read "the Joint
Committee".

No 96/67

Council Directive 96/67/EC of 15 October
1996 on access to the groundhandling market at Community airports.

Applicable requirements and standards:
Articles 1 to 25 and Annex.

As regards the application of Article 10,
the term "Member States" shall read "EU Member States".

As regards the application of Article
20(2), the term "the Commission" shall read "the Joint
Committee".

No 785/2004

Regulation (EC) No 785/2004 of the European
Parliament and of the Council of 21 April 2004 on insurance requirements for
air carriers and aircraft operators,

as amended by:

Commission Regulation (EU) No 285/2010 of 6
April 2010 amending Regulation 785/2004 of the European Parliament and of the
Council on insurance requirements for air carriers and aircraft operators.

Applicable requirements and standards:
Articles 1 to 8, and 10(2).

No 2009/12

Directive 2009/12/EC of the European
Parliament and of the Council of 11 March 2009 on airport charges.

Applicable requirements and standards: all
except Articles 12 (1), 13 and 14

B. AIR TRAFFIC MANAGEMENT

No 549/2004

Regulation (EC) No 549/2004 of the European
Parliament and of the Council of 10 March 2004 laying down the framework for
the creation of the single European sky (the framework Regulation),

as amended by:

Regulation (EC) No 1070/2009 of the
European Parliament and of the Council of 21 October 2009 to improve the performance
and sustainability of the European aviation system.

Applicable requirements and standards:
Articles 1 to 4, 6, and 9 to 14.

No 550/2004

Regulation (EC) No 550/2004 of the European
Parliament and of the Council of 10 March 2004 on the provision of air
navigation services in the single European sky (the service provision
Regulation),

as amended by:

Regulation (EC) No 1070/2009 of the
European Parliament and of the Council of 21 October 2009 to improve the
performance and sustainability of the European aviation system.

Applicable requirements and standards:
Articles 1 to 19, Annexes I and II.

No 551/2004

Regulation (EC) No 551/2004 of the European
Parliament and of the Council of 10 March 2004 on the organisation and use of
the airspace in the single European sky (the airspace Regulation),

as amended by:

Regulation (EC) No 1070/2009 of the
European Parliament and of the Council of 21 October 2009 to improve the
performance and sustainability of the European aviation system.

Applicable requirements and standards:
Articles 1 to 11.

No 552/2004

Regulation (EC) No 552/2004 of the European
Parliament and of the Council of 10 March 2004 on the interoperability of the
European Air Traffic Management network (the interoperability Regulation),

as amended by:

Regulation (EC) No 1070/2009 of the
European Parliament and of the Council of 21 October 2009 to improve the
performance and sustainability of the European aviation system.

Applicable requirements and standards:
Articles 1 to 12, Annexes I to V.

Implementing Legislation

No 691/2010

Commission Regulation (EU) No 691/2010 of
29 July 2010 laying down a performance scheme for air navigation services and
network functions and amending Regulation (EC) No 2096/2005 laying down common
requirements for the provision of air navigation services,

as amended by:

Commission Regulation (EU) No 677/2011 of 7
July 2011 laying down detailed rules for the implementation of air traffic
management (ATM) network functions and amending Regulation (EU) No 691/2010,

Commission Regulation (EU) N° 1216/2011 of
24 November 2011 amending Commission Regulation (EU) N° 691/2010 laying down a
performance scheme for air navigation services and network functions,

Commission Regulation (EU) N° 390/2013 of
03 May 2013 laying down a performance scheme for air navigation services and
network functions.

Applicable requirements and standards:
Articles 1 to 25, Annexes I to IV.

No 1794/2006

Commission Regulation (EC) No 1794/2006 of
6 December 2006 laying down a common charging scheme for air navigation services,

as amended by:

Commission Regulation (EU) No 1191/2010 of
16 December 2010 amending Regulation (EC) No 1794/2006 laying down a common
charging scheme for air navigation services

Commission Regulation (EU) N° 391/2013 of
03 May 2013 laying down a common charging scheme for air navigation services.

Applicable requirements and standards:
Articles 1 to 17, Annexes I to VI.

No 482/2008

Commission Regulation (EC) No 482/2008 of
30 May 2008 establishing a software safety assurance system to be implemented
by air navigation service providers and amending Annex II to Regulation (EC) No
2096/2005,

as amended by:

Commission Regulation (EU) No 1035/2011 of
17 October 2011 laying down common requirements for the provision of air
navigation services and amending Regulations (EC) No 482/2008 and (EU) No
691/2010.

Applicable requirements and standards:
Articles 1 to 6, Annexes I to II.

No 1034/2011

Commission Regulation (EU) No 1034/2011 of 17 October
2011 on safety oversight in air traffic management and air navigation services
and amending Regulation (EU) No 691/2010.

Applicable requirements and standards:
Articles 1 to 19.

No 1035/2011

Commission Implementing Regulation (EU) No
1035/2011 of 17 October 2011 laying down common requirements for the provision
of air navigation services and amending Regulations (EC) No 482/2008 and (EU)
No 691/2010,

as
amended by:

Commission
Implementing Regulation (EU) No 923/2012 of 26 September 2012 laying down the
common rules of the air and operational provisions regarding services and
procedures in air navigation and amending Implementing Regulation (EU) No
1035/2011 and Regulations (EC) No 1265/2007, (EC) No 1794/2006, (EC) No
730/2006, (EC) No 1033/2006 and (EU) No 255/2010.

Applicable
requirements and standards:  Articles 1 to 14, Annexes I to V.

No 409/2013

Commission Regulation (EU) N° 409/2013 of 03 May 2013
on the definition of Common projects, the establishment of governance and
identification of incentives supporting the implementation of the European ATM
Master Plan.

Applicable requirements and standards: Articles 1 to
15.

No 2150/2005

Commission Regulation (EC) No 2150/2005 of 23 December
2005 laying down common rules for the flexible use of airspace.

Applicable requirements and standards:
Articles 1 to 9, Annex.

No 730/2006

Commission Regulation (EC) No 730/2006 of 11 May 2006
on airspace classification and access of flights operated under visual flight
rules above flight level 195.

Applicable requirements and standards:
Articles 1 to 4.

No 255/2010

Commission Regulation (EU) No 255/2010 of 25 March
2010 laying down common rules on air traffic flow management.

Applicable requirements and standards:
Articles 1 to 15.

No 176/2011

Commission Regulation (EU) No 176/2011 of
24 February 2011 on the information to be provided before the establishment and
modification of a functional airspace block.

No 923/2012

Commission Regulation (EU) No 923/2012 of 26
September 2012 laying down the common rules of the air and operational
provisions regarding services and procedures in air navigation and amending
Implementing Regulation (EU) No 1035/2011 and Regulations (EC) No 1265/2007,
(EC) No 1794/2006, (EC) No 730/2006, (EC) No 1033/2006 and (EU) No 255/2010.

Applicable requirements and standards:
Articles 1 to 10, Annex.

No 1032/2006

Commission Regulation (EC) No 1032/2006 of
6 July 2006 laying down requirements for automatic systems for the exchange of
flight data for the purpose of notification, coordination and transfer of
flights between air traffic control units,

as amended by:

Commission Regulation (EC) No 30/2009 of 16
January 2009 amending Regulation (EC) No 1032/2006 as far as the requirements
for automatic systems for the exchange of flight data supporting data link
services are concerned.

Applicable requirements and standards: Articles
1 to 10, Annexes I to V.

No 1033/2006

Commission Regulation (EC) No 1033/2006 of
4 July 2006 laying down the requirements on procedures for flight plans in the
pre-flight phase for the single European sky,

as amended by:

Commission Regulation (EU) N° 428/2013 of
08 May 2013 amending Regulation (EC) No 1033/2006 as regards the ICAO
provisions referred to in Article 3(1).

Applicable requirements and standards:
Articles 1 to 5, Annex.

No 633/2007

Commission Regulation (EC) No 633/2007 of 7
June 2007 laying down requirements for the application of a flight message
transfer protocol used for the purpose of notification, coordination and
transfer of flights between air traffic control units,

as amended by:

Commission Regulation (EU) No 283/2011 of
22 March 2011 amending Regulation (EC) No 633/2007 as regards the transitional
arrangements referred to in Article 7.

Applicable requirements and standards:
Articles 1 to 7, the second and third sentences of Article 8, Annexes I to IV.

No 29/2009

Commission Regulation (EC) No 29/2009 of 16
January 2009 laying down requirements on data link services for the single
European sky.

Applicable requirements and standards:
Articles 1 to 14, Annexes I to VII.

No 262/2009

Commission Regulation (EC) No 262/2009 of
30 March 2009 laying down requirements for the coordinated allocation and use
of Mode S interrogator codes for the single European sky.

Applicable requirements and standards:
Articles 1 to 12, Annexes I to VI.

No 73/2010

Commission Regulation (EU) No 73/2010 of 26
January 2010 laying down requirements on the quality of aeronautical data and
aeronautical information for the single European sky.

Applicable requirements and standards:
Articles 1 to 13, Annexes I to X.

No 1206/2011

Commission Implementing Regulation (EU) No
1206/2011 of 22 November 2011 laying down requirements on aircraft
identification for surveillance for the single European sky.

Applicable requirements and standards:
Articles 1 to 11, Annexes I to VII.

No 1207/2011

Commission Implementing Regulation (EU) No
1207/2011 of 22 November 2011 laying down requirements for the performance and
the interoperability of surveillance for the single European sky.

Applicable requirements and standards:
Articles 1 to 14, Annexes I to IX.

No 1079/2012

Commission Regulation (EU) N° 1079/2012 of
16 November 2012 laying down requirements for voice channels spacing for the
single European sky and repealing Regulation (EC) N° 1265/2007.

Applicable requirements and standards:
Articles 1 to 15, Annexes I to V.

SESAR Regulation

No 219/2007

Council Regulation (EC) No 219/2007 of 27
February 2007 on the establishment of a Joint Undertaking to develop the new
generation European air traffic management system (SESAR),

as amended by:

Commission Regulation (EC) No 1361/2008 of
16 December 2008 amending Regulation 219/2007 on the establishment of a joint
undertaking to develop the new generation European air traffic management
system (SESAR).

Applicable requirements and standards:
Article 1(1)-(2) and (5)-(7), Articles 2 to 3, Article 4(1), Annex.

Air traffic controllers' licences

No 805/2011

Commission Regulation (EU) No 805/2011 of
10 August 2011 laying down detailed rules for air traffic controllers' licences
and certain certificates pursuant to Regulation (EC) No 216/2008 of the European
Parliament and of the Council.

Applicable requirements and standards:
Articles 1 to 32, Annexes I to IV.

Commission Decisions

No 2011/121

Commission Decision of 21 February 2011
setting the European Union-wide performance targets and alert thresholds for
the provision of air navigation services for the years 2012 to 2014
(2011/121/EU).

Applicable requirements and standards:
Articles 1 to 4.

No 2011/2611 final

Commission Decision of 20 May 2011 on
exemptions under Article 14 of Commission Regulation (EC) No 29/2009 C(2011)
2611 final.

Applicable requirements and standards:
Articles 1 to 3, Annexes I and II.

No 2011/9074 final

Commission Implementing Decision of 9
December 2011 on exemptions under Article 14 of Commission Regulation (EC) N°
29/2009 - C(2011) 9074 final.

Applicable requirements and standards:
Articles 1 to 3, Annexes I and II.

No 2012/9604 final

Commission Implementing Decision on the
approval of the Network Strategy Plan for the air traffic management network
functions of the single European sky for the period 2012-2019 - C (2012) 9604
final.

Applicable requirements and standards:
Articles 1 to 3.

C. AVIATION
SAFETY

No 216/2008 (Basic Regulation)

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,

as amended by:

Commission Regulation (EC) No 690/2009 of
30 July 2009 amending Regulation (EC) No 216/2008 of the European Parliament
and the Council 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.

Regulation (EC) No 1108/2009 of the
European Parliament and of the Council of 21 October 2009 amending Regulation
(EC) No 216/2008 in the field of aerodromes, air traffic management and air
navigation services and repealing Directive 2006/23/EC.

Commission Regulation (EU) No 6/2013 of 8
January 2013 amending
Regulation (EC) No 216/2008 of the European Parliament and of the Council 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.

Applicable requirements and standards:
Articles 1 to 11, 13 to 16, 20 to 25, 54, 55, 68 and Annexes I to VI.

Regulation (EC) No 216/2008 and its implementing rules
shall be applied to Ukraine according to the following provisions:

1.       Ukraine does not delegate to the
EASA any of its safety related functions as envisaged under the Convention and
its Annexes;

2.       Ukraine shall be subject to
standardisation inspections conducted by the EASA under Article 54 of
Regulation (EC) No 216/2008;

3.       The application of Article 11 of
Regulation (EC) No 216/2008 to certificates issued by Ukraine will be decided by the Joint Committee, according to the provisions of Annex III to this
Agreement;

4.       Article 11, paragraph 1 of
Regulation (EC) No 216/2008 shall not apply to certificates of Ukraine issued
in the areas of flight operations and initial and continuing airworthiness
(Implementing Regulations No(s): (EU) 965/2012, 748/2012 and (EC) 2042/2003);

5.       The European Commission shall
enjoy in Ukraine the powers granted to it for decisions pursuant to Article 11,
paragraph 2, Article 14, paragraph 5 and 7, Article 24, paragraph 5 and Article
25, paragraph 1 of Regulation (EC) No 216/2008 in the areas where Article 11,
paragraph 1 is declared applicable by the Joint Committee;

6.       In the field of airworthiness,
where no tasks are carried out by the EASA, Ukraine may issue certificates,
licences or approvals in application of an agreement or arrangement concluded
by Ukraine with a third country.

No 748/2012

Commission Regulation (EU) No 748/2012 laying down implementing rules for the
airworthiness and environmental certification of aircraft and related products,
parts and appliances, as well as for the certification of design and production
organisations,

as amended by:

Commission Regulation (EU) No 7/2013 amending Regulation (EU) No 748/2012 laying
down Implementing Rules for the airworthiness and environmental certification
of aircraft and related products, parts and appliances, as well as for the
certification of design and production organisations.

Applicable requirements and standards:
Articles 1-2, 8-10 and Annex.

No 2042/2003

Commission Regulation (EC) No 2042/2003 of
20 November 2003 on the continuing airworthiness of aircraft and aeronautical
products, parts and appliances, and on the approval of organisations and
personnel involved in these tasks,

as amended by:

Commission Regulation (EC) No 707/2006 of 8
May 2006 amending Regulation (EC) No 2042/2003 as regards approvals of a
limited duration and Annexes I and III;

Commission Regulation (EC) No 376/2007 of
30 March 2007 amending Regulation (EC) No 2042/2003 on the continuing
airworthiness of aircraft and aeronautical products, parts and appliances, and
on the approval of organisations and personnel involved in these tasks;

Commission Regulation (EC) No 1056/2008 of
27 October 2008 amending Regulation (EC) No 2042/2003 on the continuing
airworthiness of aircraft and aeronautical products, parts and appliances, and
on the approval of organisations and personnel involved in these tasks;

Commission Regulation (EU) No 127/2010 of 5
February 2010 amending Regulation (EC) No 2042/2003 on the continuing
airworthiness of aircraft and aeronautical products, parts and appliances, and
on the approval of organisations and personnel involved in these tasks;

Commission Regulation (EU) No 962/2010 of
26 October 2010 amending Regulation (EC) No 2042/2003 on the continuing
airworthiness of aircraft and aeronautical products, parts and appliances, and
on the approval of organisations and personnel involved in these tasks;

Commission Regulation (EU) No 1149/2011 of
21 October 2011 amending Regulation (EC) No 2042/2003 on the continuing
airworthiness of aircraft and aeronautical products, parts and appliances, and
on the approval of organisations and personnel involved in these tasks;

Commission Regulation (EU) No 593/2012
amending Regulation (EC) No 2042/2003 on the continuing airworthiness of aircraft
and aeronautical products, parts and appliances, and on the approval of
organisations and personnel involved in these tasks.

Applicable requirements and standards:
Articles 1 to 6, Annexes I to IV.

No 996/2010

Regulation (EU) No 996/2010 of the European
Parliament and of the Council of 20 October 2010 on investigation and
prevention of accidents and incidents in civil aviation and repealing Directive
94/56/EC.

Applicable requirements and standards:
Articles 1 to 26, with the exception of Articles 7(4) and 24.

No 2003/42

Directive 2003/42/EC of the European
Parliament and the Council of 13 June 2003 on occurrence reporting in civil
aviation.

Applicable requirements and standards:
Articles 1 to 11, Annexes I and II.

No 1321/2007

Commission Regulation (EC) No 1321/2007 of
12 November 2007 laying down implementing rules for the integration into a
central repository of information on civil aviation occurrences exchanged in
accordance with Directive 2003/42/EC of the European Parliament and of the
Council.

Applicable requirements and standards:
Articles 1 to 4.

No 1330/2007

Commission Regulation (EC) No 1330/2007 of
24 September 2007 laying down implementing rules for the dissemination to
interested parties of information on civil aviation occurrences referred to in
Article 7(2) of Directive 2003/42/EC of the European Parliament and of the
Council.

Applicable requirements and standards:
Articles 1 to 10, Annexes I to II.

No 104/2004

Commission Regulation (EC) No 104/2004 of
22 January 2004 laying down rules on the organisation and composition of the
Board of Appeal of the European Aviation Safety Agency.

Applicable requirements and standards:
Articles 1 to 7 and Annex.

No 628/2013

Commission Implementing Regulation (EU) No
628/2013 of 28 June 2013 on working methods of the European Aviation Safety
Agency for conducting standardisation inspections and for monitoring the
application of the rules of Regulation (EC) No 216/2008 of the European
Parliament and of the Council and repealing Commission Regulation (EC) No 736/2006.

Applicable requirements and standards:
Articles 1 to 27.

No 2111/2005

Regulation (EC) No 2111/2005 of the
European Parliament and of the Council of 14 December 2005 on the establishment
of a Community list of air carriers subject to an operating ban within the
Community and on informing air transport passengers of the identity of the
operating air carrier, and repealing Article 9 of Directive 2004/36/EC.

Applicable requirements and standards
provisions: Articles 1 to 13, Annex.

No 473/2006

Commission Regulation (EC) No 473/2006 of
22 March 2006 laying down implementing rules for the Community list of air
carriers which are subject to an operating ban within the Community referred to
in Chapter II of Regulation (EC) No 2111/2005 of the European Parliament and of
the Council.

Applicable requirements and standards
provisions: Articles 1 to 6, Annexes A to C.

No 474/2006

Commission Regulation (EC) No 474/2006 of
22 March 2006 establishing the Community list of air carriers which are subject
to an operating ban within the Community referred to in Chapter II of
Regulation (EC) No 2111/2005 of the European Parliament and of the Council,

as last amended by:

Commission Implementing Regulation (EU) No
659/2013 of 10 July 2013 amending Regulation (EC) No 474/2006 establishing the
Community list of air carriers which are subject to an operating ban within the
Community.

Applicable requirements and standards:
Articles 1 to 3, Annexes A to B (please see here below latest amendments):

No 1178/2011

Commission Regulation (EU) No 1178/2011 of 3 November
2011 laying down technical requirements and administrative procedures related
to civil aviation aircrew pursuant to Regulation (EC) No 216/2008 of the
European Parliament and of the Council,

as amended by:

Commission Regulation (EU) No 290/2012 of
30 March 2012 amending Regulation (EU) No 1178/2011 laying down technical
requirements and administrative procedures related to civil aviation aircrew
pursuant to Regulation (EC) No 216/2008 of the European Parliament and of the
Council.

Applicable requirements and standards:
Articles 1 to 11, Annexes I to VII.

No 965/2012

Commission Regulation (EU) No 965/2012 of 5
October 2012 laying down technical requirements and administrative procedures
related to air operations pursuant to Regulation (EC) No 216/2008 of the
European Parliament and of the Council,

as amended by:

Commission Regulation (EU) No 800/2013 of
14 August 2013 amending Regulation (EU) No 965/2012 laying down technical
requirements and administrative procedures related to air operations pursuant
to Regulation (EC) No 216/2008 of the European Parliament and of the Council.

Applicable requirements and standards):
Articles 1 to 9, Annexes I to VII.

No 1332/2011

Commission Regulation (EU) No 1332/2011 of
16 December 2011 laying down common airspace usage requirements and operating
procedures for airborne collision avoidance.

Applicable requirements and standards: Articles 1 to 4, Annex.

D. ENVIRONMENT

No 2003/96

Council Directive 2003/96/EC of 27 October
2003 restructuring the Community framework for the taxation of energy products
and electricity.

Applicable requirements and standards:
Article 14(1)(b) and (2).

No 2006/93

Directive 2006/93/EC of the European
Parliament and of the Council of 12 December 2006 on the regulation of the
operation of aeroplanes covered by Part II, Chapter 3, Volume 1 of Annex 16 to
the Convention on International Civil Aviation, second edition (1988).

Applicable requirements and standards:
Articles 1 to 5.

No 2002/49

Directive 2002/49/EC of the European
Parliament and of the Council of 25 June 2002 relating to the assessment and
management of environmental noise.

Applicable requirements and standards:
Articles 1 to 16, Annexes I to VI.

No 2002/30

Directive 2002/30/EC of the European
Parliament and of the Council of 26 March 2002 on the establishment of rules
and procedures with regard to the introduction of noise-related operating
restrictions at Community airports,

Applicable requirements and standards:
Articles 1 to 15, Annexes I and II.

E. SOCIAL ASPECTS

No 1989/391

Council Directive 89/391/EEC of 12 June
1989 on the introduction of measures to encourage improvements in the safety
and health of workers at work,

as amended by:

Directive 2007/30/EC of the European
Parliament and of the Council of 20 June 2007 amending Council Directive
89/391/EEC, its individual Directives and Council Directives 83/477/EEC,
91/383/EEC, 92/29/EEC and 94/33/EC with a view to simplifying and rationalising
the reports on practical implementation.

Applicable requirements and standards:
Articles 1 to 16, and 18 to19.

No 2003/88

Directive 2003/88/EC of the European
Parliament and of the Council of 4 November 2003 concerning certain aspects of
the organisation of working time.

Applicable provisions: Articles 1 to 19, 21
to 24 and 26 to 29.

No 2000/79

Council Directive 2000/79/EC of 27 November
2000 concerning the European Agreement on the Organisation of Working Time of
Mobile Workers in Civil Aviation concluded by the Association of European
Airlines (AEA), the European Transport Workers' Federation (ETF), the European
Cockpit Association (ECA), the European Regions Airline Association (ERA) and
the International Air Carrier Association (IACA).

Applicable requirements and standards:
Articles 2 to 3, Annex.

F. CONSUMER PROTECTION

No 90/314

Council Directive 90/314/EEC of 13 June
1990 on package travel, package holidays and package tours.

Applicable provisions: Articles 1 to 10.

No 93/13

Council Directive 93/13/EEC of 5 April 1993
on unfair terms in consumer contracts.

Applicable provisions: Articles 1 to 10 and
Annex.

As regards the application of Article 10,
the term "the Commission" shall read "all other ECAA Contracting
Parties".

No 95/46

Directive 95/46/EC of the European
Parliament and of the Council of 24 October 1995 on the protection of
individuals with regard to the processing of personal data and on the free
movement of such data.

Applicable requirements and standards:
Articles 1 to 34.

No 2027/97

Council Regulation (EC) No 2027/97 of 9
October 1997 on air carrier liability in the event of accidents,

as amended by:

Regulation (EC) No 889/2002 of the European
Parliament and of the Council of 13 May 2002 amending Council Regulation (EC)
No 2027/97.

Applicable requirements and standards:
Articles 1 to 8.

No 261/2004

Regulation (EC) No 261/2004 of the European
Parliament and of the Council of 11 February 2004 establishing common rules on
compensation and assistance to passengers in the event of denied boarding and
of cancellation or long delay of flights, and repealing Regulation (EEC) No
295/91.

Applicable requirements and standards:
Articles 1 to 17.

No 1107/2006

Regulation (EC) No 1107/2006 of the
European Parliament and of the Council of 5 July 2006 concerning the rights of
disabled persons and persons with reduced mobility when travelling by air.

Applicable requirements and standards:
Articles 1 to 16, Annexes I and II.

G. COMPUTER
RESERVATION SYSTEMS

No 80/2009

Regulation (EC) No 80/2009 of the European
Parliament and of the Council of 14 January 2009 on a Code of Conduct for
computerised reservation systems and repealing Council Regulation (EEC) No
2299/89.

Applicable requirements and standards): Articles 1 to 19 and Annexes.

H. OTHER
LEGISLATION

No 437/2003

Regulation (EC) No 437/2003 of the European
Parliament and of the Council of 27 February 2003 on statistical returns in
respect of the carriage of passengers, freight and mail by air,

as amended by:

Commission Regulation (EC) No 1358/2003 of
31 July 2003 implementing and amending Regulation (EC) No 437/2003 of the European
Parliament and of the Council.

Commission Regulation (EC) No 546/2005 of 8
April 2005 adapting Regulation (EC) No 437/2003 of the European Parliament and
of the Council as regards the allocation of reporting-country codes and
amending Commission Regulation (EC) No 1358/2003 as regards the updating of the
list of Community airports.

Applicable requirements and standards:
Articles 1 to 11, Annexes I and II.

No 1358/2003

Commission Regulation (EC) No 1358/2003 of
31 July 2003 implementing Regulation (EC) No 437/2003 of the European
Parliament and of the Council on statistical returns in respect of the carriage
of passengers, freight and mail by air and amending Annexes I and II thereto,

as amended by:

Commission Regulation (EC) No 158/2007 of
16 February 2007 amending Commission Regulation (EC) No 1358/2003 as regards
the list of Community airports.

Applicable requirements and standards:
Articles 1 to 4, Annexes I to III.

___________________
ANNEX II

AGREED
SERVICES AND SPECIFIED ROUTES

1. 
Each Party grants to
the air carriers of the other Party the rights to provide air transport
services on the routes specified hereunder:

(a)     for air carriers of the European Union: Any point in the
European Union – intermediate points in the territories of European Neighbourhood
Policy partners[2],
ECAA countries[3],
or countries listed in Annex V – Any point in Ukraine – points beyond;

(b)     for air carriers of Ukraine: Any point in Ukraine –
intermediate points in the territories of European Neighbourhood Policy
partners, ECAA countries or countries listed in Annex V – Any point in the
European Union.

Existing and new
rights, including rights to serve beyond points under bilateral agreements or
other arrangements between Ukraine and EU Member States, which are not covered
under this Agreement, can be exercised and agreed, provided that there is no
discrimination between air carriers on the basis of nationality;

(c)     Air carriers of the European Union shall also be entitled to
perform air transport services between points in Ukraine, whether or not such
air transport services originate or terminate within the EU.

2. 
The services operated
according to paragraph 1(a) and (b) of this Annex shall originate or terminate
in the territory of Ukraine, for air carriers of Ukraine, and in the territory
of the European Union for air carriers of the European Union.

3. 
Air carriers of both
Parties may on any or all flights and at their option:

(a)     operate flights in either or both directions;

(b)     combine different flight numbers within one aircraft operation;

(c)     serve intermediate and beyond points, as specified in paragraph
1(a) and (b) of this Annex, and points in the territories of the Parties in any
combination and in any order;

(d)     omit stops at any point or points;

(e)     transfer traffic from any of its aircraft to any of its other
aircraft at any point;

(f)      make stopovers at any points whether within or outside the
territory of either Party;

(g)     carry transit traffic through the other Party's territory; and

(h)     combine traffic on the same aircraft regardless of where such
traffic originates.

4. 
Each Party shall allow
each air carrier to determine the frequency and capacity of the international
air transport it offers based upon commercial considerations in the
marketplace. Consistent with this right, neither Party shall unilaterally limit
the volume of traffic, frequency or regularity of service, or the aircraft type
or types operated by the air carriers of the other Party, except for customs,
technical, operational, environmental, protection of health reasons or in
application of Article 26 (Competitive Environment) of this Agreement.

5. 
The air carriers of
each Party may serve, including within the framework of code share
arrangements, any point located in a third country that is not included on the
specified routes, provided that they do not exercise 5th freedom rights.

6. 
This Annex is subject
to the transitional arrangements contained in Annex III to this Agreement and
the extension of rights foreseen therein.

ANNEX III

TRANSITIONAL
ARRANGEMENTS

Section 1

Transitional
periods

1.      The transition of Ukraine towards the
effective implementation of all provisions and conditions stemming from this
Agreement shall be carried out through two transitional periods.

2.      Such transition shall be subject to
assessments and standardisation inspections, which shall be conducted by the
European Commission and the EASA respectively, as well as a decision of the
Joint Committee, as provided for in Article 33 (Transitional Arrangements) of
this Agreement.

Section 2

Specifications
applicable during the first transitional period

1.       During the first transitional
period:

(a)      air carriers of the
European Union and air carriers licensed by Ukraine shall be permitted to
exercise unlimited traffic rights between any point in the European Union and
any point in Ukraine;

(b)      subject to an
assessment regarding the implementation by Ukraine of the relevant European
Union requirements and standards and following the information of the Joint
Committee, Ukraine shall be involved as observer in the work of the Committee
established under the terms of Regulation (EEC) No 95/93 on common rules for
the allocation of slots at Community airports; and

(c)      the provisions of Article 22 (Commercial
Opportunities), sub-paragraph 5(c) (groundhandling to air carriers of other
Parties) shall not apply.

2.     The conditions for the transition towards the
second transitional period shall involve for Ukraine the following:

(a)      incorporation in the
national legislation and implementation of the applicable requirements and
standards of:

- Regulation (EC) 216/2008 (on common rules
in the field of civil aviation and establishing a European Aviation Safety
Agency);

- Regulation (EU) 748/2012 (implementing
rules for the airworthiness and environmental certification of aircraft and
related products, parts and appliances, as well as for the certification of
design and production organisations);

- Regulation (EC) No 2042/2003 (on the
continuing airworthiness of aircraft and aeronautical products, parts and
appliances, and on the approval of organisations and personnel involved in
these tasks) as amended;

- Regulation (EU) No 965/2012 (laying down
technical requirements and administrative procedures related to air
operations);

- Regulation (EU) No 1178/2011 (laying down
technical requirements and administrative procedures related to civil aviation
aircrew);

- Regulation (EU) No 996/2010 (on investigation and
prevention of accidents and incidents);

- Directive 2009/12/EC (on airport
charges);

- Directive 96/67/EC (on access to the
groundhandling market at Community airports);

- Regulation (EEC) No 95/93 (on common
rules for the allocation of slots);

- Directive 2000/79/EC (concerning the
European Agreement on the Organisation of Working Time of Mobile Workers in
Civil Aviation);

- Chapter IV of the Regulation (EC) No
1008/2008 (on operation of air services);

- Regulation (EC) No 785/2004 (on insurance
requirements for air carriers and aircraft operators);

- Regulation (EEC) No 80/2009 (on computer
reservation systems);

- Regulation (EC) No 2027/97 (on air
carrier liability in the event of accidents);

- Regulation (EC) 261/2004 (common rules on
compensation and assistance to passengers in the event of denied boarding and
of cancellation or long delay of flights);

- Regulation (EC) No 549/2004 of the European
Parliament and of the Council of 10 March 2004 laying down the framework for
the creation of the single European sky (the framework Regulation);

- Regulation (EC) No 550/2004 of the European
Parliament and of the Council of 10 March 2004 on the provision of air
navigation services in the single European sky (the service provision
Regulation);

- Regulation (EC) No 551/2004 of the European
Parliament and of the Council of 10 March 2004 on the organisation and use of
the airspace in the single European sky (the airspace Regulation);

- Regulation (EC) No 552/2004 of the European
Parliament and of the Council of 10 March 2004 on the interoperability of the
European Air Traffic Management network (the interoperability Regulation);

- Regulation (EU) No 691/2010 of the European
Commission of 29 July 2010 laying down a performance scheme for air navigation
services and network functions and amending Regulation (EC) No 2096/2005 laying
down common requirements for the provision of air navigation services;

- Regulation (EC) No 1794/2006 of the European
Commission of 6 December 2006 laying down a common charging scheme for air
navigation services;

- Regulation (EU) No 1034/2011 of the European
Commission of 17 October 2011 on safety oversight in air traffic management and
air navigation services and amending Regulation (EU) No 691/2010;

- Regulation (EC) No 2150/2005 of the European
Commission of 23 December 2005 laying down common rules for the flexible use of
airspace; and

- Regulation (EU) No 255/2010 of the European
Commission of 25 March 2010 laying down common rules on air traffic flow
management,

as these are stipulated, including their amendments in Annex I to this
Agreement;

(b)       application of operating licensing rules
substantially equivalent to those contained in Chapter II of Regulation (EC) No
1008/2008 of the European Parliament and of the Council of 24 September 2008 on
common rules for the operation of air services in the European Union; and

(c)       as regards aviation security, implementation
of ECAC Document 30, Part II in its latest applicable amendment.

Section 3

Specifications
applicable during the second transitional period

1.      Following the decision
of the Joint Committee, as provided for Article 33 (Transitional Arrangements) of
this Agreement, confirming that Ukraine fulfils all the conditions stipulated
under section 2 (2):

(a)     the relevant
certificates issued by Ukraine, as listed in Annex IV, section 1, shall be
recognised by the Member States in accordance with the conditions stipulated in
the decision of the Joint Committee and pursuant to Article 11 of Regulation (EC)
216/2008;

(b)   the provisions of Article
22 (Commercial Opportunities), sub-paragraph 5(c) (groundhandling to air
carriers of other Parties) of this Agreement shall apply; and

(c)   subject to an assessment regarding the
implementation by Ukraine of the relevant European Union requirements and
standards and following the information of the Joint Committee, Ukraine shall
be involved as observer in the work of the Committee established under the
terms of Regulation (EC) (No) 2111/2005 on the establishment of a Community
list of carriers subject to an operating ban within the Community.

2.      The conditions for the transition towards the
full implementation of this Agreement shall involve for Ukraine the following:

(a)   incorporation in the
national legislation and implementation of all applicable requirements and
standards of the European Union acts set out in Annex I to this Agreement; and

(b)   the
airspace under its responsibility shall be organised in line with the EU
requirements applicable for the establishment of FABs.

Section 4

Full
implementation of this Agreement

Following the decision of the Joint
Committee, as provided for in Article 33 (Transitional Arrangements) of this
Agreement, confirming that Ukraine fulfils all conditions stipulated under
section 3 (2) of this Annex, the following shall apply:

1.       In addition to the traffic rights
set out in section 2 (1) to this Annex:

(a)   air carriers of the European Union
shall be permitted to exercise unlimited traffic rights between points in
Ukraine, intermediate points in the European Neighbourhood Policy and ECAA
countries, as well as points in countries listed in the Annex V and points
beyond, provided that the flight is a part of a service that serves a point in
a Member State.

Air carriers of the European Union shall also be
permitted to exercise unlimited traffic rights between points in Ukraine,
whether or not such air services originate or terminate within the EU; and

(b)   air carriers of Ukraine shall be permitted to
exercise unlimited traffic rights between any point in the European Union,
intermediate points in the European Neighbourhood Policy and ECAA countries, as
well as in countries listed in the Annex V, provided that the flight is a part
of a service that serves a point in Ukraine.

2.      All the relevant
certificates comprised in Annex IV, section 2 to this Agreement issued by Ukraine shall be recognised by the Member States in accordance with the conditions foreseen
by these provisions.

________________

ANNEX IV

LIST OF CERTIFICATES REFERRED TO IN ANNEX III

TO THIS AGREEMENT

1. Air Crew

Pilots’ licences (issuing, maintaining, amending,
limiting, suspending or revoking licences) (Regulations (EC) No 216/2008, (EU)
No 1178/2011, (EU) No 290/2012  amending (EU) No 1178/2011).

Certification of persons responsible for providing
flight training or flight simulation training and for assessing pilots’ skills
(Regulations (EC) No 216/2008, (EU) No 1178/2011, (EU) No 290/2012 amending
(EU) No 1178/2011).

Cabin crew attestations (issuing, maintaining,
amending, limiting, suspending or revoking cabin crew attestations)
(Regulations (EC) 216/2008, (EU) No 1178/2011, (EU) No 290/2012  amending (EU)
No 1178/2011).

Medical certificates for pilots (issuing, maintaining,
amending, limiting, suspending or revoking) (Regulations (EC) No 216/2008, (EU)
No 1178/2011), (EU) No 290/2012 amending (EU) No 1178/2011.

Certification of aero-medical examiners, as well as
the conditions under which general medical practitioners may act as
aero-medical examiners (Regulations (EC) 216/2008, (EU) No 1178/2011, (EU) No
290/2012 amending (EU) No 1178/2011).

Periodical aero-medical assessment of cabin crew
members - the qualification of persons responsible for this assessment
(Regulations (EC) 216/2008, (EU) No 1178/2011,(EU) No 290/2012  amending (EU)
No 1178/2011).

Conditions for issuing, maintaining, amending,
limiting, suspending or revoking certificates of pilot training organisations
Regulations (EC) 216/2008, (EU) No 1178/2011, (EU) No 290/2012 amending (EU) No
1178/2011).

Conditions for issuing, maintaining, amending,
limiting, suspending or revoking certificates of aero-medical centres involved
in the qualification and aero-medical assessment of civil aviation aircrew
(Regulations (EC) 216/2008, (EU) No 1178/2011, (EU) No 290/2012 amending (EU)
No 1178/2011).

Certification of flight simulation training devices
and the requirements for organisations operating and using those devices
(Regulations (EC 216/2008, (EU) No 1178/2011, (EU) No 290/2012 amending (EU) No
1178/2011).

2.
Air Traffic Management/Air Navigation Services

Certificates of air traffic services providers
(Regulations (EC) 216/2008, (EU) No 1034/2011, (EU) No 1035/2011 Annex II Specific
requirements for the provision of air traffic services).

Certificates of meteorological services providers
(Regulations (EC) 216/2008, (EU) No 1034/2011, (EU) No 1035/2011 Annex III
Specific requirements for the provision of meteorological services).

Certificates of aeronautical information services
providers (Regulations (EC) 216/2008, (EU) No 1034/2011, (EU) No 1035/2011 Annex
IV Specific requirements for the provision of aeronautical information
services).

Certificates of communication, navigation or
surveillance services providers (Regulations (EC) 216/2008, (EU) No 1034/2011,
(EU) No 1035/2011 Annex V Specific requirements for the provision of
communication, navigation or surveillance service).

Licences of air traffic controllers (ATCO) and student
air traffic controllers (issue, suspension and revocation) and associated
ratings, endorsements (Regulations (EC) 216/2008, (EU) No 805/2011).

Medical certificates of air traffic controllers
(Regulations (EC) 216/2008, (EU) No 805/2011).

Certificates of
training organisations for air traffic controllers (ATCO) (validity, renewal,
revalidation and use) (Regulations (EU) No 216/2008 and (EU) No 805/2011).

ANNEX V

LIST OF OTHER STATES REFERRED TO IN
ARTICLES 17, 19, 22

OF THIS AGREEMENT AND

ANNEXES II AND III TO THIS AGREEMENT

1.        The Republic of Iceland (under the Agreement on the European Economic Area);

2.        The Principality of Liechtenstein (under the Agreement on the European Economic Area);

3.        The Kingdom of Norway (under the Agreement on the European Economic Area); and

4.        The Swiss Confederation (under
the Agreement between the European Community and the Swiss Confederation on Air
Transport).

ANNEX VI

PROCEDURAL
RULES

This Agreement shall be applicable in
accordance with the procedural rules set out here under:

1. INVOLVEMENT OF UKRAINE IN COMMITTEES

When according to this Agreement Ukraine is
involved in a Committee established by the relevant European Union acts, it
shall acquire an observer status and will be exposed to all relevant
discussions and be encouraged to engage in debate, in accordance with their
rules of procedure, while it shall be excluded from sessions involving voting.

As regards the field of Air Traffic
Management, in order to implement the relevant Single European Sky legislation,
  Ukraine shall also be involved in all bodies established by the European Commission,
such as the Industry Consultation Body (ICB) and the Network Manager (NM).

2. ACQUIREMENT OF OBSERVER STATUS IN THE EASA

The observer status in the EASA entitles Ukraine to participate in technical groups and bodies of the EASA open for the EU Member
States and other Partner countries in the European neighbourhood, subject to
the established conditions for such participation. Observer status does not
cover the right to vote. This status will not be acquired as regards the EASA
Management Board.

3. COOPERATION AND EXCHANGE OF INFORMATION

To facilitate the exercise of the relevant
powers of the competent authorities of the Parties, such authorities shall upon
request mutually exchange all information necessary for the proper functioning
of this Agreement.

4. REFERENCE TO LANGUAGES

The Parties shall be entitled to use, in the
procedures established in the ambit of this Agreement, any official language of
the institutions of the European Union or the Ukrainian language. The Parties
are aware, however, that the utilisation of English facilitates those
procedures. If a language, which is not an official language of the
institutions of European Union is used in an official document, a translation
into an official language of the institutions of the European Union shall be
simultaneously submitted, taking into account the provision of the preceding
sentence. If a Party intends to use, in an oral procedure, a language that is
not an official language of the institutions of the European Union, that Party
shall ensure simultaneous interpretation into English.

ANNEX VII

CRITERIA REFERRED TO IN ARTICLE 26, PARAGRAPH 4

OF THIS AGREEMENT

1.        The following shall be compatible
with the proper functioning of this Agreement:

(a)   aid having a social character,
granted to individual consumers, provided that such aid is granted without
discrimination related to the origin of the services concerned; and

(b)   aid
to make good the damage caused by natural disasters or exceptional occurrences.

2.        Moreover,
the following may be considered to be compatible with the proper functioning of
this Agreement:

(a)   aid to promote the economic
development of areas where the standard of living is abnormally low or where
there is serious underemployment;

(b)   aid to
facilitate the development of certain economic activities or of certain
economic areas where such aid does not adversely affect commercial operations
of air carriers to the interests of the Parties; and

(c)   aid to achieve objectives, allowed
under the EU horizontal block exemption regulations and horizontal and
sectorial state aid rules granted in line with the conditions set out therein.

________________

[1]     This designation is without prejudice
to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on
the Kosovo Declaration of Independence.

[2]           "European Neighbourhood Policy partners" shall here be understood as Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria, Tunisia and the Republic of Moldova, i.e. shall here not include Ukraine.

[3]           "ECAA countries" are the Parties to the
Multilateral Agreement establishing a European Common Aviation Area, which are:
The Member States of the European Union, the Republic of Albania, Bosnia and
Herzegovina, the former Yugoslav Republic of Macedonia, the Republic of
Iceland, the Republic of Montenegro, the Kingdom of Norway, the Republic of
Serbia and Kosovo (This designation is without prejudice to positions on status,
and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of
Independence).