Launch failures in the past decade cost Russia almost a billion dollars
According to a Russian news report today, a Russian government financial study has found that the eleven Russian launch failures that occurred from 2010 to 2018 cost the government almost a billion dollars.
“During this period (2010-2018), 11 emergency launches took place. The losses of Russian to more than 35 bln rubles (which is almost 13 times higher than insurance costs),” the document said.
At the same time, due to the insurance tool, Russia returned almost 20 bln rubles ($309.62 mln), which is more than seven times the insurance costs.
“It should also be noted that during this period there were a number of emergency that were not insured. The result of these accidents was the losses of Roscosmos State Corporation in the amount of over 10.5 bln rubles ($162.55 mln), the sources of compensation are not established,” according to the explanatory note to the draft resolution of the Russian government.
The report also noted that insurance for launches from 2019 to 2021 will cost the Russians about 15% per launch. I don’t know the normal per launch insurance rate, so it is unclear if this is a heavy burden or not.
What is clear is that the failures in the past decade not only cost Russia dearly in money, it also lost them their international commercial market share. Right now almost all their launches are for the government, which brings them no outside profit, something they need desperately to help finance their future space effort.
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According to a Russian news report today, a Russian government financial study has found that the eleven Russian launch failures that occurred from 2010 to 2018 cost the government almost a billion dollars.
“During this period (2010-2018), 11 emergency launches took place. The losses of Russian to more than 35 bln rubles (which is almost 13 times higher than insurance costs),” the document said.
At the same time, due to the insurance tool, Russia returned almost 20 bln rubles ($309.62 mln), which is more than seven times the insurance costs.
“It should also be noted that during this period there were a number of emergency that were not insured. The result of these accidents was the losses of Roscosmos State Corporation in the amount of over 10.5 bln rubles ($162.55 mln), the sources of compensation are not established,” according to the explanatory note to the draft resolution of the Russian government.
The report also noted that insurance for launches from 2019 to 2021 will cost the Russians about 15% per launch. I don’t know the normal per launch insurance rate, so it is unclear if this is a heavy burden or not.
What is clear is that the failures in the past decade not only cost Russia dearly in money, it also lost them their international commercial market share. Right now almost all their launches are for the government, which brings them no outside profit, something they need desperately to help finance their future space effort.
The support of my readers through the years has given me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Four years ago, just before the 2020 election I wrote that Joe Biden's mental health was suspect. Only in this year has the propaganda mainstream media decided to recognize that basic fact.
Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Even today NASA and Congress refuse to recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
Please consider supporting my work here at Behind the Black.
You can support me either by giving a one-time contribution or a regular subscription. There are five ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation:
5. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above. And if you buy the books through the ebookit links, I get a larger cut and I get it sooner.
According to XL Catlin Insurance, the current “Launch +1” insurance rate is ~5%, down from ~20% in the early 2000s.
Chris Quilty: Thank you for this factoid. It makes clear that high insurance costs are definitely hurting the Russians due to their quality control problems.
Can you provide a link to this information?