Russia is going to restrict overflights for EU airlines?

Russia may restrict or ban European airlines from flying over Siberia on busy Asian routes, a Russian newspaper reported, following Western sanctions which have grounded Russian carrier Dobrolet.

The Russian business daily Vedomosti quoted unnamed sources as saying the foreign and transport ministries were discussing possible action which might force EU airlines into long and costly detours and put them at a disadvantage to Asian rivals.

Shares in Russian carrier Aeroflot - which, according to Vedomosti, gets around USD$300 million a year in fees paid by foreign airlines flying over Siberia - dropped after the report.

The Transport Ministry and the civil aviation authority declined to comment on the possibility of responding to the European Union sanctions imposed due to the Ukraine crisis.

At the height of the Cold War, most Western airlines were barred from flying through Russian airspace to Asian cities, and instead had to operate via the Gulf or the US airport of Anchorage, Alaska on the polar route.

However, European carriers now fly over Siberia on their growing routes to countries such as China, Japan and South Korea, paying the fees which have been subject to a long dispute between Brussels and Moscow.

The newspaper quoted one source as saying a ban could cost carriers including Lufthansa, British Airways and Air France EUR€1 billion (USD$1.3 billion) over three months. Restrictions would lead to longer flights, higher fuel use and other additional costs.

However, state-controlled Aeroflot would also be hurt if it lost the fees.

Lufthansa said it operates about 180 flights a week through Siberian airspace but declined further comment, as did British Airways.

The EU widened its sanctions, imposed originally over Russia's annexation of Crimea in March, after last month's downing of a Malaysian airliner over territory in eastern Ukraine controlled by pro-Moscow rebels.

Russian low-cost airline Dobrolet, run by Aeroflot, suspended all flights last week after its plane lease agreement was cancelled because the EU extended sanctions on the carrier for flying to Crimea.