1. The speaker, ALEXANDER BOTOV, is the executive director of the JSC Managing Company Severny Vozdushny Most (North Air Bridge) Creation and operation of specialized satellite system to the benefit of Russia, Canada and of the Arctic Council countries. The system is to provide a guaranteed communication field at Arctic latitudes. Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada Page 1

2. the signature of the ICAO President Mr. Kotaite that assigns the authorship of the project to Russia The Project North Air Bridge (Severny Vozduschniy Most) was developed in Krasnoyarsk. In 1997 with the participation of director of the Federal Aviation Service (FAS ) of Russia and of the Governor of Krasnoyarsk region, a demonstration flight Krasnoyarsk- Montreal was performed. Aims of the flight: - to prove the real opportunity of using Cross-Polar Routes, - to prove its viability to present the project on behalf of Russia in ICAO (International Civil Aviation Organization), the speaker was Alexander Botov Page 2 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

3. Taking into account the world economic crisis, compared to the other air routes the Cross-Polar flights dynamics has the highest rates in the world (A positive steady growth of 6.5% in 2009, the other routes have shown a recession by 12.6%) and this growth proceeds. In 2010 recession of air transportation has stopped and observed growth both passenger, and cargo air service Page 3 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

4. In September of 2010 on cross-polar routes is executed maximum quantity of flights - 952, and in at all in 2010 by the shortest routes from the North America to South East Asia through Arctic regions 9658 flights are executed. For the first four months of 2011 from January till April of a seasonal minimum of air service 3340 flights are executed (for the similar period in 2010 2724 flights are executed) that makes growth of 22,6 %. Page 4 Красноярский край, Россия Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

5. However, in the conditions of absence the guaranteed communication in Arctic regions, flights by cross-polar routes are carrying out with using mode «procedural management» which possesses throughput no more than one plane at 30 minutes. For removal of the future restrictions on intensity of flights in the absence of the guaranteed communication in Arctic regions it is necessary to solve a communication problem. Page 5 Красноярский край, Россия Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

6. SOLUTION OF THE PROBLEM of absence of the guaranteed communication in Arctic regions, and, as a follows, increases in throughput cross-polar routes in 3-4 years is a creation for civil aircraft of specialized communication satellite system on the high elliptical orbits with a cover zone from 60 o a northern latitude and distribution of services on the countries of the Arctic Council Page 6 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

7. AREAS OF POSSIBLE SERVICE SATELLITE COMMUNICATIONS SYSTEM ON HIGH-ELLIPTIC ORBIT, TYPE “MOLNIA" Zone of the system servicing may vary depending on the specific system requirements. Zone where there is no necessary stable connection HEO orbit with an apogee - 42,000 km. and perigee - 800 km. - type “Molnia" Coverage area Page 7 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

8. The carried out consultations with the Canadian authorities and the companies within the limits of the Russian-Canadian Intergovernmental economic commission; Bilateral negotiations between authorities of Krasnoyarsk region and a province Manitoba; Consultations between the SVM company and the Canadian companies; Allow to draw a conclusion on possibility and expediency of creation of joint specialized space system to the benefit of Russia and Canada Page 8 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

9. What should be the Russian-Canadian specialized system of outer-space communication for the Arctic widths? Page 9 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

10. The analysis of the market and demand for services of a planned to creation satellite communication system has shown that unique solvent group of consumers of a telecommunication service in the Arctic widths the next 7-10 years is the international civil aircraft. Page 10 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

11. That's why, the satellite communication system in Arctic regions as economically effective system should be focused on rendering of services of the international civil aircraft, and should be: international, with possibility of rendering of services in all countries of the Arctic Council; specialized; equally accessible for all countries of the Arctic Council Page 11 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

12. The implementation of 2 satellites in one flatness with ground-based control complex in Russia and Canada, considering the needs of air companies and national aeronavigation companies in specialized satellite communication services. THE FIRST STAGE THE STAGES OF WORK ORGANIZATION Page 12 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

13. In process of growth of demand for services of the given system: The placing of another two satellites in an orbit into a second flatness with an additional functionalism for a new customers; Deducing of companions in the second plane; Escalating of an additional land infrastructure in Russia, Canada and other countries-participants of the Arctic Council. THE SECOND STAGE Page 13 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

14. THE STRUCTURE OF THE COMMUNICATION SATELLITE SYSTEM CONTROL IN THE ARCTIC AS AN INTERNATIONAL SYSTEM Due to the international status of the created System, the character of provided services for the Civil Aviation and geography of services, following conditions must be performed: Equivalent land complexes of management of the given system - in Russia, Canada and Europe; Technologically interchangeable centers of processing and information redistribution; National control centers of air traffic for introduction of technologies of automatic dependent supervision in Arctic regions on the basis of the given satellite system. Page 14 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

15. Proceeding from the spent Russian-Canadian consultations and arrangements, land complexes of management it is planned to create: In Russia – Krasnoyarsk (basic) and St.-Petersburg (reserve); In Canada – Montreal (basic), because in Montreal is concentrated the huge potential in the field of the aerospace industry and tax preferences in innovative activity as for the companies registered in Montreal, and for employees of these companies are provided. Page 15 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

16. The researches conducted by us and consultations of the Canadian authorities and the companies show expediency and necessity of joint creation and the subsequent operation of specialized system of outer-space communication in interests of civil aircraft in the Arctic widths CONCLUSION: Page 16 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

17. Page 17 OFFERS TO WORKING GROUP ON THE NORTH AND ARCTIC REGIONS THE RUSSIAN-CANADIAN INTERGOVERNMENTAL ECONOMIC COMMISSION: With a view of maintenance of the organization of works on creation and the subsequent operation of specialized system of outer-space communication in Arctic regions as the international system, the working group on the North and Arctic regions the Russian-Canadian intergovernmental economic commission is offered to coordinate and submit for approval to cochairmen of the Russian-Canadian intergovernmental economic commission the below- mentioned: Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

18. Page 18 FIRST: In territory of Canada to define the operator of specialized satellite communication system in Arctic regions in interests of civil aircraft the joint venture created in TECHNOPARC MONTREAL by the Russian operator of given space system – Open Society the Management company «Northern air bridge» (Russia, Krasnoyarsk region) and the Canadian companies. Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

19. SECOND: To interested federal authorities of the Russian Federation and Canada, and also regional authorities in which territories the land infrastructure of specialized satellite communication system in Arctic regions in interests of civil aircraft will be created to consider possibility of maintenance of maintained to provide as much as possible favorable mode of performance of works within the limits of the given project, including tax preferences, both at a creation stage, and at an operation phase of specialized satellite communication system in Arctic regions with specification of corresponding federal and regional programs. Page 19 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

20. THIRD: To interested federal authorities of the Russian Federation and Canada to consider possibility of maintenance of coordination of works with the countries of the Arctic Council for integration and advancement in the markets of the given countries of specialized satellite communication system and services of the given system. Page 20 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada

21. Thank you! Page 21 Canada-Russia Intergovernmental Economic Commission Arctic and North Working Group May 27, 2011, Ottawa, Canada