Putin reduces budget for Roscosmos by 16%
The Putin government has significantly cut the budget for Roscosmos, reducing it by 16% for each of the next three years.
For 2022, the state budget for space activities will be set at 210 billion rubles ($2.9 billion), a cut of 40.3 billion rubles ($557 million) from the previous year. Similar cuts will follow in subsequent years. The most significant decreases will be in areas such as “manufacturing-technological activities” and “cosmodrome development.” Funding for “scientific research and development” was zeroed out entirely.
The publications say Russian President Vladimir Putin is unhappy with the performance of Russia’s space program. At a space industry meeting on September 29, they report, Putin criticized the industry’s failure to fulfill directives on long-term goals in the space sphere. In 2020, for example, Roscosmos failed to hit 30 of the 83 stated goals of the national space program.
Putin’s dissatisfaction is quite justified. Since his government consolidated all of Russia’s aerospace industry into a single corporation run by Roscosmos, the space agency has made many promises but achieved little. It is clear that he hopes these cuts will force it to get its act together.
The problem is that Putin has done nothing to change the root cause that has fueled this failure, the government aerospace monopoly that Putin himself created. Without competition and a willingness to allow new Russian aerospace companies to succeed — in direct competition with Roscosmos — there is little chance of reform. Roscosmos will struggle on, and it might even begin to show a bit of success, but in the end its best prospect is to become one of many competitors in the new commercial space market. And its market share will be small, because the competitive private companies in the west will easily beat it in cost and innovation.
The Putin government has significantly cut the budget for Roscosmos, reducing it by 16% for each of the next three years.
For 2022, the state budget for space activities will be set at 210 billion rubles ($2.9 billion), a cut of 40.3 billion rubles ($557 million) from the previous year. Similar cuts will follow in subsequent years. The most significant decreases will be in areas such as “manufacturing-technological activities” and “cosmodrome development.” Funding for “scientific research and development” was zeroed out entirely.
The publications say Russian President Vladimir Putin is unhappy with the performance of Russia’s space program. At a space industry meeting on September 29, they report, Putin criticized the industry’s failure to fulfill directives on long-term goals in the space sphere. In 2020, for example, Roscosmos failed to hit 30 of the 83 stated goals of the national space program.
Putin’s dissatisfaction is quite justified. Since his government consolidated all of Russia’s aerospace industry into a single corporation run by Roscosmos, the space agency has made many promises but achieved little. It is clear that he hopes these cuts will force it to get its act together.
The problem is that Putin has done nothing to change the root cause that has fueled this failure, the government aerospace monopoly that Putin himself created. Without competition and a willingness to allow new Russian aerospace companies to succeed — in direct competition with Roscosmos — there is little chance of reform. Roscosmos will struggle on, and it might even begin to show a bit of success, but in the end its best prospect is to become one of many competitors in the new commercial space market. And its market share will be small, because the competitive private companies in the west will easily beat it in cost and innovation.