EU sanctions derail Russia's plan to employ foreign airlines for domestic flights
Russia's attempt to counter a sharp increase in airline ticket prices has hit a major roadblock. The European Union's newly imposed, 16th sanctions package has blocked one of Moscow's crucial strategies—engaging foreign carriers for domestic flights. As a result, any negotiations for what's termed "cabotage" appear virtually out of reach. This development was reported by the Russian outlet Agentstvo.
The restrictions, introduced on the third anniversary of Russia's invasion of Ukraine, ban any airlines operating domestic flights within Russia from flying over EU countries. Though no international carrier had yet committed to such flights, Russia's Transport Ministry had high hopes for the plan.
Transport Minister Roman Starovoit previously mentioned ongoing talks with "friendly countries" such as Kazakhstan, Qatar, Kuwait, and Uzbekistan. Yet, none of these initiatives bore fruit. Kazakhstan has officially denied receiving related requests, while airlines from other nations feared being ensnared under Western sanctions.
Russia faces a severe challenge with its internal flight market; since the onset of the Ukraine conflict, ticket prices have surged much faster than inflation. Rosstat data indicates that in the past three years, economy class fares have jumped by over 60%, with a 22% increase in 2024 alone. Efforts to bring in international carriers appeared to be a lifeline, but European sanctions quickly extinguished those hopes.
Moscow now faces the task of finding alternative solutions to the rapid rise in air travel costs. However, each new round of sanctions continues to tighten the noose.