Proposal for a Council Regulation suspending, for a period of six months, Council Regulation (EC) No 2151/1999 imposing a ban on flights between the territories of the Community and the Federal Republic of Yugoslavia other than the Republic of Montenegro or the Province of Kosovo, and amending Council Regulations (EC) No 1294/1999 and 2111/1999 as regards payments and supplies in relation to flights during the period of suspension
Date: 2000-03-14
Institutions: European Commission
Subjects: Yugoslavia, air transport, international sanctions, petroleum product

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 14.03.2000
COM(2000) 145 final

Proposal for a

COUNCIL REGULATION

suspending, for a period of six months, Council Regulation (EC) No 2151/1999 imposing
a ban on flights between the territories of the Community and the Federal Republic of
Yugoslavia other than the Republic of Montenegro or the Province of Kosovo,
and
amending Council Regulations (EC) No 1294/1999 and 2111/1999 as regards payments
and supplies in relation to flights during the period of suspension

(presented by the Commission)

(1)

(2)

(3)

(4)

EXPLANATORY MEMORANDUM

By means of Council Regulation (EC) No 2151/1999 of 11 October 1999 the Council
confirmed the ban on flights on flights between the territories of the Community and
imposed in May 1999, granting
the Federal Republic of Yugoslavia (FRY), first
exemptions for flights to the Republic of Montenegro and the Province of Kosovo.

Further to requests by the democratic forces in the Federal Republic of Yugoslavia,
the Council
and in particular the political opposition in the Republic of Serbia,
adopted, on 28 February 2000, a Common Position determining that the flight ban
should be suspended for a period of six months and calling on the Community to
implement fully the measures resulting from this suspension.

The attached proposal
is for a Council Regulation implementing that Common
Position. In order to allow an effective resumption of flights, not only by Community
carriers but also by the FRY’s state -owned carrier, JAT, it is considered necessary
that
the suspension be implemented in such a way that, despite the financial
restrictions applicable to JAT as a company included in the definition of the
Government of the FRY in Council Regulation (EC) No 1294/1999, it should have one
bank account in each Member State that can be used to make and receive payments
related to authorised flights. The proposal makes provision for the use of such
accounts and for payments necessary in relation to these flights that would otherwise
be prohibited.

As regards supplies of petroleum and petroleum products needed to execute flights,
the proposal makes provision for the necessary supplies to aircraft engaged in flights
to the Federal Republic of Yugoslavia, in airports in both the Community and, to the
extent that the embargo applies, in third countries. In order not to undermine the
embargo, it would appear appropriate to leave it to the FRY authorities to ensure that
fuel is available in airports in the FRY and to supply fuel to both aircraft registered in
the Community and other aircraft, without discrimination.

(5)

Taking into account that the suspension is of limited duration, it is proposed that
payments, as well as supplies of petroleum and petroleum products, should be reported
in order to provide the basis for an evaluation of the operation of the suspension.

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Proposal for a

COUNCIL REGULATION

suspending, for a period of six months, Council Regulation (EC) No 2151/1999 imposing
a ban on flights between the territories of the Community and the Federal Republic of
Yugoslavia other than the Republic of Montenegro or the Province of Kosovo,
and
amending Council Regulations (EC) No 1294/1999 and 2111/1999 as regards payments
and supplies in relation to flights during the period of suspension

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles
60 and 301 thereof,

Having regard to Common Position 2000/176/CFSP of 28 February 2000, adopted by the
Council on the basis of Article 15 of the Treaty on European Union, concerning a suspension,
for a limited period of time, Article 4 of Common Position 1999/318/CFSP concerning
restrictive measures against the Federal Republic of Yugoslavia1 ,

Having regard to the proposal from the Commission2,

Whereas:

(1)

(2)

(3)

the Council determined that

In the light of an urgent and unanimous call of the democratic opposition in the
the ban on flights
Federal Republic of Yugoslavia,
between the Federal Republic of Yugoslavia and the European Community should be
suspended until end of August 2000, while, maintaining its overall policy framework
of applying maximum pressure on President Milosevic and his regime, strengthening
the visa ban and the financial sanctions and welcoming the commitment by the
democratic forces in the Federal Republic of Yugoslavia to work together for
democratic change.

Therefore, the provisions of Council Regulation (EC) No 2151/1999 imposing a ban
on flights between the territories of the Community and the Federal Republic of
Yugoslavia other than the Republic of Montenegro or the Province of Kosovo3 ,
the conditions defined in this
should be suspended during that period under
Regulation.

In addition, Council Regulation (EC) No 1294/1999 concerning a freeze of funds and
a ban on investment in relation to the Federal Republic of Yugoslavia4 and Council
Regulation (EC) No 2111/1999 prohibiting the sale and supply of petroleum and

1 OJ L 56, 1. 3. 2000, p. 1.
2 OJ C , , p. .
3 OJ L 264, 12. 10. 1999, p. 3.
4 OJ L 153, 19. 6. 1999. p. 63.

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certain petroleum products to certain parts of the Federal Republic of Yugoslavia5,
should be amended in order to make provision for transfers of funds, the use of funds
and supplies of petroleum and petroleum products which will be necessary in relation
to flights during the period of suspension.

(4)

is opportune to make provision for monitoring of the implementation of the

It
suspension,

HAS ADOPTED THIS REGULATION:

1.

2.

1.

Article 1

Council Regulation (EC) No 2151/1999 shall be suspended until 28 August 2000.

For the period referred to in the previous paragraph, the competent authorities listed
in Annex I to Council Regulation (EC) No 2151/1999 may authorise individual, or a
series of, flights by civil aircraft as defined in Article 1(c) between the territories of
the Community and the Federal Republic of Yugoslavia.

these competent authorities to withdraw
Without prejudice to the power of
authorisations, authorisations granted under this Article shall cease to be valid on the
date referred to in paragraph 1 of this Article or on any earlier date stipulated by the
competent authorities granting the authorisation.

Article 2

Notwithstanding Article 3(1) of Council Regulation (EC) No 1294/1999, JAT –
Jugoslovenski Aerotransport (Yugoslav Airlines) may, in each Member State, open
one account with a Community bank in order to receive and make payments in
relation to flights between the territories of the Federal Republic of Yugoslavia and
the European Community. The funds in such account shall be used exclusively to
pay, in relation to such flights,

– charges for air traffic control services rendered in the Community,

– charges for ground handling and other services rendered by Community

companies in airports in the Community,

– charges for services rendered by carriers having their principal place of business

or their registered office in a Member State of the Community,

– the price of supplies, to aircraft in airports in the Community, of goods necessary
for the proper functioning of such aircraft, including petroleum and petroleum
products, and

– taxes, customs duties and other charges imposed by the Community and its

Member States.

5 OJ L 258, 5. 10. 1999, p. 12.

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2.

3.

Notwithstanding Article 3(1) of Council Regulation (EC) No 1294/1999, funds
transferred by JAT from outside the Community to a bank account opened in
accordance with in the previous paragraph, shall not be frozen.

Article 3(2) of Council Regulation (EC) No 1294/1999, shall not apply to payments
for goods and services, as well as payments of taxes, customs duties and other
charges, on the following conditions.

(a)

That the obligation to pay is directly and immediately related to flights between
the territories of the Community and the Federal Republic of Yugoslavia,
executed during the period referred to in Article 1(1);

(b) That the charges, prices or rates are not applied on a discriminatory basis, and
such the level of such charges, prices or rates in Euro does not exceed that
applicable during the six month period before 19 June 1999, increased with the
average rate of inflation in the Community since that date;

(c)

That, in the case of payment of taxes, customs duties and other charges, the
taxes, customs duties and other charges, imposed before or after the entry into
force of this Regulation, were not imposed to counteract any reduction of
economic relations with the Federal Republic of Yugoslavia decided by the
European Community, and the payment fell due as a result of flights authorised
in accordance with Article 1(2);

(d) That transfers of funds to the Federal Republic of Yugoslavia shall take place
only, if the person making the payment both demonstrates that payment has to
take place in the Federal Republic of Yugoslavia, and that it does not have
sufficient funds in that country to make that payment, and obtains prior
authorisation from the competent authorities of the Member States, as listed in
Annex III to Council Regulation (EC) No 1294/1999; and

(e)

That all payments shall be reported to the competent authorities of the Member
State most concerned, as listed in Annex III to Council Regulation (EC) No
1294/1999, and to the Commission on a monthly basis, within two weeks of
the end of the month to which the report relates. The report shall, where
appropriate, be accompanied by evidence justifying the making of a payment in
the Federal Republic of Yugoslavia.

Article 3

1.

Article 1 of Council Regulation (EC) No 2111/1999 shall not apply to supplies of
in the
petroleum and petroleum products to any civil aircraft
Community, provided that

in an airport

(a)

such supplies are necessary for the proper functioning of such aircraft;

(b)

such supplies are directly and immediately related to flights between the
territories of
the Community and the Federal Republic of Yugoslavia
authorised in accordance with Article 1(2); and

(c)

all supplies shall be reported to the competent authorities of the Member State
most concerned, as listed in Commission Regulations (EC) No 1084/1999 and

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2.

1.

2.

1971/19996, and to the Commission on a monthly basis, within two weeks of
the end of the month to which the report relates.

Article 1 of Council Regulation (EC) No 2111/1999 shall not apply to, direct or
indirect, supplies of petroleum and petroleum products by bodies incorporated or
constituted under the law of a Member State, to aircraft in airports in third countries
other than the Federal Republic of Yugoslavia, provided that such supplies are
necessary for the proper functioning of such aircraft and are directly and immediately
related to flights between the territories of the third country concerned and the
Federal Republic of Yugoslavia, executed during the period of suspension referred to
in Article 1(1).

Article 4

The Commission shall monitor the implementation of this Regulation, and in
particular the actions of the Federal Republic of Yugoslavia and the Republic of
Serbia vis-à-vis Community carriers, and report to the Council before the end of the
period referred to in Article 1(1).

The Member States and the Commission shall inform each other of the measures
taken under this Regulation and shall supply each other with all relevant information
at their disposal in connection with this Regulation, such as granting and withdrawal
of authorisations, and summaries of information received in accordance with Articles
2(3)(e) and 3(1)(c).

This Regulation shall enter into force on the day of its publication in the Official Journal of
the European Communities.

Article 5

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council
The President

6 OJ L 131, 27. 5. 1999, p. 29 and L 244, 16. 9. 1999, p. 40.

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