Russian air navigation services will not serve Armavia air company planes in Russian air space beginning from August 14, a representative of the Federal Air Navigation Service of Russia told journalists. The Federal Air Navigation Service explained that February 17, 2006 Armavia leaders presented the schedule for debt pay-off, according to which normal payment regime should have been launched for the air company. However, the means were transferred after numerous notifications and warnings, the report underscores, while after the crash of an Armavia plane on May 3 the company abruptly reduced payment on the schedule and asked for a new installment.

The decision is explained by the Russian State Corporation for Organizing Air Transportation having to pay taxes for services provided to, but paid by Armavia.

The report also reminds that Armenian Airlines company, which was Armenia's appointed carrier in Russia up to August 2001, still has debt of over $2.5 million.

In its turn Armavia released a statement that financial commitments to the State Corporation for Organizing Air Transportation, which appeared on August 4, are fully met at present. "All payment is made in compliance with the schedule and the financial means will soon be received by the State Corporation settlement account. All following payment will be done in compliance with the schedule," says Armavia's official statement, signed by company Director General N. Belluyan, reports IA Regnum.