SALIS: Temporary solution – constant search

Recently curious people with admirable stability are persistently interested in the same question: “What are the consequences of Russian aggression against Ukraine?” Markers of this questions especially within the frames of Russian-Ukrainian military and technical cooperation become visible for unaided eye: at the beginning – sanctions and total import phase-out, after that – missiles cannot be launched, vessels cannot navigate, aircrafts cannot fly. It is also applied to Russian-Ukrainian NATO programs, with the help of which the budgets of both countries receive significant funds.

In accordance with aforesaid during a whole year the attention of European Union is drawn to “SALIS” NATO program (Strategic Airlift Interim Solutions, temporary solution for strategic air transportation of cargoes).

A bit of history. This project is implemented for already more than ten years via “Ruslan SALIS GmbH” German company which was established by NATO initiative in 2004 by “VOLGA-DNEPR” Russian commercial air company and by “Antonov Airlines”, a business unit of ANTONOV State Company. Operation of the company is regulated by the Contract signed in December 2005, the validity period of which is periodically extended for determined period.

Purpose of the project: providing of air transportation services for delivery of heavy, oversize and hazardous cargoes for the interests of NATO member-countries and European Union countries.

As of 2016 services of Ruslan SALIS GmbH were provided to 13 countries: 11 NATO member-countries (Belgium, Hungary, Germany, Greece, Luxembourg, Norway, Poland, Slovakia, Slovenia, France, Czech Republic) plus Sweden and Finland. The Great Britain has officially left the project in January 2015.

So where is the problem? And a problem appeared by the reason that the Contract has expired on December 31, 2016, and it required extension for 2017-2019, but, due to Russian aggression against Ukraine and international anti-Russian sanctions, SALIS international project faced with conflicting issues that require immediate solving, such as: how to continue the cooperation between Ukraine and Russia and whether such cooperation is still possible? Is it possible for Ukraine to support this project independently without Russia, and vice versa?

Such questions appeared after actions of Ukrainian party which announced that starting from January 1, 2017, it intends to work under SALIS program independently, besides Ruslan SALIS GmbH, and for this purpose on July 12, 2016, it has registered “Antonov SALIS GmbH” company under control of Antonov Airlines.

Appearance of two independent players (“Ruslan SALIS GmbH” and “Antonov SALIS GmbH”) within the frames of single SALIS project put some European countries into stupor. However, everything looks logic: aggression, annexation, reaction and sanctions, but never the less, tender results were postponed and canceled for several times.

Such intrigue wasn’t long. According to results of consultations between SALIS program member-countries held in October 2016, both offers provided by “Antonov SALIS GmbH” and “Ruslan SALIS GmbH” were accepted! And Bundeswehr, due to its interest in this project (2/3 of its needs in air transportation using SALIS project) was assigned to distribute a volume of flight hours under this program in the ratio of 60% for Russia and 40% for Ukraine, according to quantity of available An-124-100 aircrafts (10 aircrafts belong to VOLGA-DNEPR, and 7 – to Antonov Airlines).

The efficiency of such mechanism will be proven only by practice and by availability of aircrafts that are allowed for operation, quantity of which for Ukrainian party wasn’t calculated correctly. Let us add the following:

- An-225 “MRIYA” (ANTONOV State Company is able to provide An-225 aircraft with the price of services of “Ruslan” aircraft);

- An-124-100 aircraft that belong to Maximus Air Cargo company (UAE), which has a valid contract with ANTONOV State Company for providing this aircraft in case of necessity;

- An-124-100 aircraft that is located in Kiev starting from 2010 and that belongs to Libyan party (can be put out to tender by state enforcement service).

On the assumption of the aforesaid and with some level of tolerance we may say that quantity of aircrafts available with “Ruslan SALIS GmbH” and “Antonov SALIS GmbH” is approximately the same, but due to general carrying capacity the Ukrainian company is in front, if we pay attention to carrying capacity of single MRIYA aircraft and four modernized An-124 (with carrying capacity up to 150 tons), we will have additional 220 tons of cargo, and this is mostly two “Ruslan” aircrafts… So how was it calculated?

What else can be offered by ANTONOV State Company as a founder of “Antonov SALIS GmbH”?

ANTONOV State Company is the designer of An-124 “Ruslan” aircraft and the manufacturer of a list of its main components.

ANTONOV State Company is the owner of complete package of certified documentation, including design documentation, so it is the only company with exclusive legal right for extension of aircraft’s service life as a developer.

The above-mentioned statement is also connected to engines for this aerial vehicle and the exclusive right for extension of engine’s service life belongs to Zaporizhzhya Machine-Building Design Bureau PROGRESS State Enterprise named after Academician A.G.IVCHENKO, Zaporizhzhya, Ukraine.

ANTONOV State Company, as a designer of An-124 “Ruslan” aircraft, has the exclusive right to sell all modifications of this aircraft, to introduce changes into design documentation regarding equipment composition, upgrades etc., in accordance with ICAO (International Civil Aviation Organization) requirements.

ANTONOV State Company, as a designer of aircrafts, has the right to extend service life according to “technical condition” even of spare parts manufactured in Russian Federation.

Nowadays ANTONOV State Company implements active policy of imports phase-out, and is planning to reach “full-cycle” in 2018.

What is VOLGA-DNEPR Air Company (as a founder of “Ruslan SALIS GmbH”) able to put against the aforesaid?

In 1994 VOLGA-DNEPR Air Company was included into a register of UN official freight forwarders and in 2007 it was canceled from UN official freight forwarders register by the reason of “bribes in exchange for contracts”, and the main people involved in this crime were Russian UN employees – Mr. Aleksandr Yakovlev and Mr. Vladimir Kuznetsov. The first one was an employee of UN Procurement Service, the second – head of advisory committee for administrative and budgetary issues in UN General Assembly. Actually both of them took decisions regarding handing-over of UN contracts to the others, and what was the reason of such decisions. In 2005, the independent committee, headed by Mr. Paul Walker, former head of US Federal Reserve System, has conducted an investigation of abuse within the frames of Oil-for-Food Program, the biggest financial UN project ever (according to the information from several sources, its budget reached up to 64 billion US dollars). The committee found the evidence of fact that Mr. Yakovlev have been taken bribes from the companies for further awarding of UN contracts, and later on he has transferred 1.3 million US dollars to bank account of the company registered in offshore zone of Antigua and Barbuda, Caribbean islands. During the same year, in federal district court of New York, Mr. Yakovlev has admitted his guilt in demanding of bribes and laundering of money. He was arrested, but released on bail. He gave evidence against Mr. Vladimir Kuznetsov. They are threatened with imprisonment for twenty years.

VOLGA-DNEPR Air Company actively cooperates with Joint Stock Company ROSOBORONEXPORT which falls under limiting sanctions from USA and other international organizations, and which has supplied Russian weapons to Sudan. Because of such fact, in accordance with Para 2 of Resolution 2091 (2013), the UN Security Council expressed its concern about the fact that direct or mediate supply, sale or handover to Sudan of technical support, weapon systems and corresponding material resources may be used by the Government of Sudan for the purpose of making maintenance of aerial vehicles that are used in disregard of Resolutions 1556 (2205) and 1591 (2005).

Thus, in April 2017 aircrafts of VOLGA-DNEPR Air Company were used for transportation from Russia to Sudan of two Mi-24P helicopters and six Mi-8MT helicopters, together with its standard weaponry. In both cases Joint Stock Company ROSOBORONEXPORT was acting as a forwarder of helicopters, and “Military Industry Corporation” Sudan company (which falls under limiting sanctions from USA) was acting as a cargo recipient.

In the context of this fact, we should mention that cooperation of VOLGA-DNEPR Air Company with ROSOBORONEXPORT JSC has a stiff character, and includes several dozens of charter flights in 2017.

In addition due to annexation of Crimea and initiation by Russia of war in eastern part of Ukraine, the US Department of Defense has stopped unilaterally the cooperation with VOLGA-DNEPR Air Company under “CRAFТ Air Mobility Command” program.

But through it all, VOLGA-DNEPR Air Company successfully uses BOEING aircrafts (manufactured in the USA) for making delivery to commercial organizations of weapons and military equipment that are prohibited by international conventions.

In particular, during the first half of 2017 using BOEING-747 aircrafts, VOLGA-DNEPR Air Company has performed delivery from Serbia to Al-Kharj city of 39 tons of smoke warheads with white phosphorous and around 30 tons of ammunitions for the needs of the Ministry of Defense of the Kingdom of Saudi Arabia.

VOLGA-DNEPR Air Company will hardly solve a problem of getting right of overflight using air space of Ukraine, Georgia and Turkey, and this fact doesn’t guarantee a complete operating readiness for cargo transportation at NATO south-east wing.

However, at first sight it may appear that Russia is able to solve all technical issues with “Ruslan” aircraft by itself, because “Moscow is above the law”, but sanctions and imports phase-out are making its task: missiles cannot be launched, aircrafts cannot fly, and it’s all about national products, so what about the foreign one?

So who is the winner and what is the prize? Detached view on the Parties

In conditions of Russian aggression against Ukraine, NATO has declared about termination of cooperation with Russian Federation under all military programs.

According to SALIS contractual conditions, NATO at any moment is empowered to terminate the contract with the executor unilaterally at any time and without explaining any reasons.

NATO is carefully weighting all political risks, and that’s why at the present moment within the frames of SALIS project Russian air companies are not able to make any flights into Georgia, Turkey and Ukraine. And these directions are very important for SALIS. For example, during 2006-2015 the following flights were executed:

- To/from Georgia by NATO request: 6 flights and 484 technical landings;

- To/from Turkey: 146 flights and 152 technical landings

In addition, facilitators of the biggest international airshow FARNBOROUGH (the Great Britain) have prohibited to Russian Federation to exhibit military-purpose products during their exhibition in 2018.

Conclusions

Russia, represented by VOLGA-DNEPR Air Company, using its own forces and without ANTONOV State Company, legally and technically is not able to cooperate with NATO within the frames of SALIS project regarding operation of An-124 “Ruslan” aircrafts.

In its turn, Ukraine, represented by ANTONOV State Company, legally and technically is able to support SALIS project independently.

For the purpose to implement the aforesaid the official Kiev within the frames of NATO-Ukraine cooperation must:

- At the first stage, to defend its interests regarding correct and differentiated distribution of flight hours volume under this program, in the ratio of at least 50% by 50% or even more;

- At the second stage, to introduce an amendment to SALIS project regarding “operation of An-124 “Ruslan” aircrafts without Russian Federation”, against the guarantee of independent implementation of SALIS contract in full volume, with higher quality and with more attractive prices for SALIS.

The road will be handled by the walker.