Prime Minister Joseph Muscat on Tuesday defended the government’s decision to reject a Russian request to use Malta’s airspace for military aircraft to fly to Venezuela.

Fielding questions during a press conference, Dr Muscat said Malta’s neutrality did not mean closing an eye to "situations".

Dr Muscat said the government had taken the best decision based on the information at hand.

Malta approved a similar request in March, and Russian military planes and personnel were eventually spotted in the Venezuelan capital Caracas.

The Russian government has dismissed as “absurd” reports suggesting it could try and interfere in next month’s local elections in retaliation.

A statement by the Russian government acknowledged that Malta had exercised its sovereign right but said the decision was not a “friendly” one.

The decision was applauded by the US State Department.

Air Malta arrangements 'above board’

Asked about government funding of Air Malta, Dr Muscat insisted that commercial arrangements between government-owned companies and the airline were all above board.

He said there was no government interference in this respect and Air Malta’s accounts had been audited by an international firm.

The recently published accounts show that were it not for nearly €34 million in revenue from the disposal of landing rights in 2018 to a government-owned company, the airline would have registered a loss of €17 million after restructuring costs and non-recurring items.

Finance Minister Edward Scicluna said Air Malta had taken a strategic decision to give up an asset worth €62 million.

He said this decision meant the asset would keep on yielding income throughout the years.