Roscosmos, Russia’s Federal Space Agency, is facing significant challenges as a result of Western sanctions and the loss of key customers. In an effort to improve its financial state, the agency plans to divest assets worth over $124 million.
The impact of Western sanctions imposed due to Russia’s invasion of Ukraine has severely affected Roscosmos. The agency has lost nearly 80% of its export income, resulting in the loss of core partners and orders. This includes significant customers such as South Korea’s space agency (KARI) and UK-based communication company OneWeb Limited.
OneWeb, in particular, suffered a major setback when Russia appropriated the satellites that were meant to be launched by Roscosmos. This forced OneWeb to write off $150 million in satellites. The loss of such key customers and the associated foreign funding has had a significant impact on Roscosmos’ financial stability.
In response to these challenges, Roscosmos has decided to sell its “non-core” assets, which include over 150 properties such as recreation centers, former sanatoriums, property complexes, and boarding houses. The proceeds generated from these sales will be used to improve the economic and financial state of Roscosmos’ businesses.
Yuri Borisov, the Director General of Roscosmos, acknowledged that it had been a challenging year for the company. However, he expressed hope that the negative trends affecting the industry for years have been reversed. Despite the difficulties faced by Roscosmos, there is optimism that the agency can overcome these challenges and regain its stability.
Looking ahead, Roscosmos has plans to sell several properties in 2024, including those located in Moscow, nearby areas, and regions such as Krasnodar, Samara, Tver, among others. These sales are expected to provide much-needed funds to support the agency’s operations and help offset the losses incurred due to sanctions and the loss of key customers.
The divestment of assets by Roscosmos highlights the significant impact of Western sanctions on Russia’s space industry. It serves as a reminder that geopolitical conflicts can have far-reaching consequences, affecting not only political relations but also economic sectors such as space exploration.
However, there is hope that Roscosmos can adapt and recover from these challenges. The divestment of non-core assets is a step toward improving the agency’s financial state and ensuring its long-term sustainability. By focusing on core operations and strategic partnerships, Roscosmos can potentially regain its position as a leading player in the global space industry.
