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The announcement yesterday that Russia is trimming its space budget by 30% was actually part of the final approval of their ten-year space plan, under discussion and planning for the past two years.
Interestingly, the 30% cut was only the last reduction of many in the budget plan since it was first announced. Initially, they hoped to budget 3.4 trillion rubles for their aerospace industry over the next decade. The final budget approved yesterday is for 1.4 trillion. That’s a 59% reduction.
Considering that the reductions have forced them to abandon any plans for building a re-usable rocket, they will be increasingly hard-pressed in the next decade to successfully compete for business in the commercial market. While Russia stands still with its older designs, others will be developing new less costly ways to launch rockets. The business will go elsewhere, and they will actually have even less money to work with.