Issue 103

Russia Financial Constraints Impacting Space Program

15 Aug: Arstechnica article from Eric Berger notes the financial impact of on-going Ukrainian operations and resulting sanctions has resulted in Russia's lowest yearly number of launches in 60 years. Excerpts Below. - (With only 9 launches to date) It appears that Russia's space program is on pace for the fewest number…

15 Aug: Arstechnica article from Eric Berger notes the financial impact of on-going Ukrainian operations and resulting sanctions has resulted in Russia’s lowest yearly number of launches in 60 years. Excerpts Below.

– (With only 9 launches to date) It appears that Russia’s space program is on pace for the fewest number of Russian or Soviet space launches in a year since 1961. That was when Yuri Gagarin went to space at the dawn of the human spaceflight era.

-In recent weeks, the first deputy director of Roscosmos, Andrei Yelchaninov, has given a series of interviews to Russian news outlets. (Most Russian media are state-owned or state-controlled, so none of this information can be independently verified, but it is interesting nonetheless.) One of the most revealing of these interviews was given to national news agency Interfax.

– “We are in an ongoing process of emerging from financial crisis, and it’s complicated,” Yelchaninov told Interfax. “I would remind you that contract cancellations by unfriendly contacts cost Roscosmos 180 billion rubles ($2.1 billion US). This forces us to build a new economy in severe conditions.”

– Russia’s space industry has been operating at a loss in recent years and may not begin to break even until 2025. Russia’s invasion of Ukraine also came as United Launch Alliance finally ended its practice of purchasing RD-180 rocket engines, manufactured by NPO Energomash. This fact, in concert with decreased commercial demand for Russia’s Proton and Soyuz rockets, has forced the Russian government to subsidize these elements of Roscosmos.

– Russia had to look to new sales markets after what Yelchaninov euphemistically refers to as the “special military operation,” which is Russia’s term of art for its war against Ukraine. “After the beginning of the SMO we were forced to shift from our traditional partners in Europe and the US, with whom we had many years of interaction, for new international directions including the countries in Africa, the Mideast, and Southeast Asia,” he said.

– Rather than working with the United States in space, Yelchaninov said that Russia’s space program would focus on cooperation with China rather than competition there.