Russian company S7 ends project to build private rocket

The Russian company S7 has ended its project to build a private rocket, citing lack of funds and a dearth of Russian investors.

Due to a lack of opportunity to raise funding, the project to create a light-class carrier rocket has been suspended,” the press service said.

The company said that was the reason why it let go some of its staff – 30 people out of more than 100 – in June. “Still, S7 Space continues to operate in some areas, such as additive and welding technologies where work is underway,” it said.

S7 first announced this rocket project in 2019. Development was suspended in 2020, however, when the Putin government imposed new much higher fees on the company for storing the ocean launch platform Sea Launch, fees so high that the company was soon negotiating to sell the platform to a Russian state-run corporation.

At the moment it appears that while Russia has possession of the Sea Launch ocean floating launch platform, it has nothing to launch from it. Nor does there appear to be any Russia project that might eventually do so. The Putin government has quite successfully choked off S7 — fearing the competition it would bring to Roscosmos — and with it any other new rocket company.

An independent Russian private space company?

Capitalism in space? The Russian company S7 Space announced today that plans to soon begin tests of the fuel tanks of its proposed reusable smallsat rocket, and is in the process of deciding what Russian facility to use.

“We plan to test the rocket’s elements, namely fuel tanks of a smaller size, with a diameter of 1.5 meters. The trials are aimed at proving that the structure is durable. A concrete laboratory is yet to be selected for the purpose. In other words, there has been no firm contract for trials so far,” [explained the head of the company’s technological research department, Arseny Kisarev.]

The official expressed hope that the trials would be carried out by TsNIIMash (Central Research Institute of Machine Building), a main research institution of Russia’s state-run space corporation Roscosmos.

“However, choosing another lab is also possible, if it corresponds to our requirements of the testing procedure,” he said.

This rocket was first announced in 2019. Development was suspended in 2020, however, when the Putin government imposed new much higher fees on the company for storing the ocean launch platform Sea Launch, fees so high that the company was soon negotiating to sell the platform to a Russian state-run corporation.

It is not clear whether that sale ever occurred, but the company itself appears only now to be resuming some operations. Though today’s story suggests it is operating independent of the control of Roscosmos and the Russian government, this is quite doubtful. Russia today functions much like the various Mafia mobs in the U.S. The various different government agencies divide up the work into “territories” that belong to each company. No other independent company can enter that territory and compete for business. Since S7 Space wants to build its own rocket, that makes it a direct competitor with Roscosmos and the government design bureaus within it that build the various Russian rockets.

More likely Roscosmos wants S7 Space to survive, but under its control and only for the purpose of building a smallsat rocket for Roscosmos. S7 Space appears to be struggling to stay independent, with this announcement likely part of that struggle.

SpaceX leases bigger space at LA port for processing Falcon 9 boosters after launch

Capitalism in space: According to the mayor of Los Angeles, SpaceX has signed a new lease for more space at the city’s port, taking over the facilities no longer used by Sea Launch’s floating launch platform that is now in Russia.

News of the port lease broke on April 26th with a tweet from the mayor of Long Beach, California after the Port of Long Beach (POLB) Commission voted to approve SpaceX’s 24-month sublease with an effective start date of May 1st, 2021. From 2014 to 2020, a massive floating rocket launch complex and associated service ships once used by SeaLaunch called POLB’s Pier 16 home while mothballed and the company left behind a decent amount of infrastructure when it vacated the facility last year.

That includes a ~5600 square meter (~65,000 sq ft) warehouse and office space formerly used to process SeaLaunch payloads and Ukrainian Zenit rockets, as well as a pier and dock space generally optimized for loading and unloading large rockets from rocket transport ships. In other words, Pier 16 is a perfect fit for SpaceX’s needs.

SpaceX has twice before signed similar leases and then canceled them. Now it appears the deal is more firm, as the company appears to be gearing up for regular Starlink satellite launches from Vandenberg, requiring a bigger need in LA for processing Falcon 9 first stage boosters after launch.

I wonder too if this deal might be in connection with Starship and the two used floating oil rigs that SpaceX now owns and is refitting as Superheavy/Starship launch and landing pads. This LA facility would be ideal for these ocean platforms before and after launch.

Russia to spend $470 million to restore Sea Launch

The Russian government today revealed that it has agreed to spend $470 million to restore the Sea Launch floating launchpad.

Before Russia took possession the platform had been stripped of much of its equipment, probably as part of the final financial settlement with Boeing, which had once been a part owner (with Russia and the Ukraine). As part of the break-up of the company Russia had had to buy Boeing off (after many lawsuits) to gain full ownership.

As noted by Deputy Prime Minister Yuri Borisov, “It is a unique structure unparalleled in the world. Some have plans for building something similar. It would be very silly of us, if we decided against restoring the Sea Launch and using its services. Technically all this is possible.”

For Russia the platform gives them the potential of a launch site at the equator, something they have never had.

S7 now in “negotiations” to sell Sea Launch to Russian government

Nice launch platform you got here. Be a shame if something happened to it: The private Russian airline company S7 is now in “negotiations” to sell the Sea Launch floating rocket launchpad to one of the Russian government’s state corporations, because it appears the Russian government is imposing such high fees on its operation the company can’t make a profit.

The second source confirmed the information, adding that “given the condition of the platform and the commander ship following the US side’s removal of equipment, and in connection with the need to create coastal infrastructure from scratch, costs of implementing the project are estimated as high.”

“Considering financial losses sustained as a result of the pandemic, a private company simply has no money to do that,” he added.

Previously the company had suspended operations because the Russian government had suddenly increased drastically the fees it was charging the company. I said then that this was simply a power play by that corrupt government to grab control of the launch platform. It appears now that this mob-like grab is succeeding.

Sea Launch project crushed by Putin government

Nice launch platform you got there. Be a shame is something happened to it: S7, the Russian company that had purchased and moved the Sea Launch platform from California to Russian, now says it is suspending operations because of the high costs imposed upon it by the Russian government.

The sale of Sea Launch to S7 Group closed in April 2018, but only in recent months had the company taken steps to move the ships from Long Beach to Russia. In February, the launch platform, Odyssey, was loaded onto a cargo ship that transported it to Russia, while the command ship sailed on its own.

In the interview, Filev appeared to regret moving the ships to Russia. He said he had been told that the costs of basing the ships in Russia would be no higher than what they had been in California. Instead, he said the cost was “twice as worse” in Russia.

S7 had claimed it hoped to do as many as 70 launches over the next 15 years, but it has no launch vehicle other than ones that the Russian government controls and allows it to use. It thus appears that the Putin government is moving to push S7 out of the deal so the government can take over.

Very typical for the corrupt, mob-inspired government in Putin’s Russia. There, you do not start your own company that might compete with the powers-that-be. Instead, anything you accomplish will taken by them for their own benefit.

Sea Launch arrives in Russia

The floating launch platform, built privately by an international partnership in the late 1990s and now owned by a Russian airline company, has arrived in Russia after a one month sea voyage from California.

Though supposedly owned now by S7, Sea Launch is really controlled by the Russian government and Roscosmos. They hope to use it as launch platform for their new Soyuz-5 rocket, intended as a family of rockets that would replace their venerable the Soyuz rocket originally developed in the 1960s.

Having a floating launch platform will also give Russia the ability for the first time to place satellites in low inclination orbits. The high latitudes of most of Russia means that any launches from any of their spaceports, including the one in Kazakhstan, will have a high inclination as well.

Russia strips Sea Launch platform of foreign equipment

In an effort to get the U.S. government to allow them to transport the Sea Launch platform from California to a Russia port in the far east, the Russians have now stripped the platform of all Boeing and Ukrainian equipment.

Originally built by a partnership of Russia, Ukraine, and Boeing, the platform is supposedly now owned by S7, a Russian airline company, but in truth it is controlled entirely by the Russian government, which wishes to refit it to launch the new Soyuz-5 rocket they are now developing.

Russian company S7 says it will launch in three years

The Russian airline company S7 that now owns Sea Launch said today that it will launch a new rocket in three years.

The first rocket the company S7 Space is working on at the moment may take place in three years from now, the company’s chief, Sergey Sopov, told TASS in an interview, adding that the launch would be used for flight-testing a cargo spacecraft.

S7 Space is working on its own rocket on the basis of a sketch design of the Soyuz-5 launch vehicle being created by the space rocket corporation Energia.

“When we launch our new rocket for the first time, approximately in three years from now, we also plan to flight-test a cargo spacecraft. Roscosmos might order six space launches from us, thus keeping busy both its own enterprises and S7 Space,” Sopov said.

S7 originally was reworking the Sea Launch rocket so that it was built entirely in Russia, and had said it would resume flights by 2019 with twelve scheduled through 2022. Now it appears they have been hired by Roscosmos to build an entirely new launch vehicle and cargo freighter, in imitation of the U.S. approach to have private companies build its space rockets and craft.

Regardless, this is not encouraging. It indicates more delays, and it also suggests that S7 is not really in control of its future but has to take orders from Roscosmos.

Sea Launch will assemble rockets in U.S.

Capitalism in space: S7, the Russian company that now owns Sea Launch, announced today that it plans to assemble its rockets in United States.

This means the dock for the floating launch platform will remain in California. The article also indicates that S7 will continue to use Ukrainian Zenit rockets, which the platform was designed for, despite the desire of the Russian government to cut off all dependence on Ukrainian technology. There is also this tidbit:

The S7 company, which is about to resume the Sea Launch program, has enough clients, S7 Group co-owner and chair of the board of directors Natalia Filyova told the press. “We have [launch] orders, there is a long line [of clients], and we offer a good price. We are expecting revenue, but this will not happen right away. We will be investing heavily but we realize that we will make money,” Filyova said.

No details of the clients or the launch schedule were announced, however, so I remain skeptical. Meanwhile, Roscosmos announced today that it is negotiating with Boeing for future space tourism flights. This second story is directly related to Sea Launch, but you would only know this if you read Behind the Black. To pay off Boeing, which used to be a half partner in Sea Launch and was owed $320 million by the Russians, Roscosmos gave Boeing an unspecified number of seats on future Soyuz capsules to sell to others. Two of those seats were sold to NASA.

These new negotiations probably are an effort to arrange further sales for Boeing to help it get its money back. Boeing’s lawsuit for that money has placed a lien on the Sea Launch platform, and until its concerns are satisfied, S7 really can’t begin operations.

Update on Russia’s troubled Sea Launch

Link here. It appears that the launch platform faces numerous additional obstacles before it can become operational again, including complex political maneuvering withing Russia and with Ukraine.

Yuzhmash officials [in Ukraine] gave their Russian counterparts at the S7 Group a list of components which are no longer available for the Zenit [rocket]. One of the most important items on the list is the ignition systems produced in the Lugansk region which has been taken over by pro-Russian rebels and remains practically cut off from the rest of Ukraine. The igniters burning black powder are used to initiate small solid-propellant motors which generate reverse thrust to facilitate the safe separation of the first and second stages during the ascent of the Zenit rocket to orbit.

According to industry sources, the S7 company has been so far unable to secure the delivery of Russian equivalents of the necessary hardware and materials, probably due to lack of permissions from Moscow. Instead, the S7 Group asked KB Yuzhnoe to organize the production of missing components in Ukraine. However, in the case of black powder, launching its production in Ukraine would not make economic sense due to lack of other applications beyond the very small amount required for the ignition systems, one source said.

Some observers question whether the S7 company has a real motivation to see the Sea Launch venture through because the airline with no prior experience in the space launch business ended up with the Sea Launch assets in its lap likely under pressure from the Kremlin. [emphasis mine]

S7 has also proposed using the Sea Launch platform to launch Russia’s next generation unmanned freighter, but this faces numerous technical issues. Regardless, the highlighted sentence above indicates how much the Russian government and the top-down Russian approach to everything interferes with efficient operations. It suggests that S7 didn’t buy into Sea Launch because it thought it could make money on it, but because of political pressure. Such pressure does not produce effective and profitable companies.

More political problems for the private Russian company taking over Sea Launch

Link here. The Russian airline company S7 wants to resume use of the Ukrainian Zenit rockets on the Sea Launch platform. They also want to fly that rocket several times from Baikonur. The problems have been getting Russia and Ukraine to work together.

Despite good progress on the engineering front of the Angosat-1 mission, political problems continued hampering the preparations of the Russian-Ukrainian launch. As of the end of June 2017, the planned liftoff for Angosat-1 slipped to October 21, however, even that date was considered optimistic within the industry. At the time, the Ukrainian team, which had to perform a scheduled maintenance on the Zenit rocket, was still waiting for permission to travel to Baikonur from the Ukrainian authorities.

Earlier, there were disputes from Russia that delayed work.

Sea Launch deal finalized?

The competition heats up? Two articles today in the Russia press suggest that either their settlement deal with Boeing over bankrupt Sea Launch is either on the verge of signing or the Russians are trying to pressure Boeing to an agreement by use of the press.

The first article says that a final agreement is about to be signed, but provides no date or indication from Boeing that they have agreed to terms. The second announces that the private Russian company that is acquiring Sea Launch from the Russian government to compete in the commercial launch market has been given a launch license by the Russian government, and will launch its first rocket from Baikonur later this year, using the Ukrainian Zenit-M rocket that was designed to fly from the Sea Launch floating platform. .This launch is intended as a test flight prior to restarting launches from the Sea Launch platform itself.

The complexity of this Sea Launch situation boggles my mind. Russia has sold Sea Launch to a private Russian airline company, S7, which will use a Ukrainian rocket to launch satellites from the Sea Launch platform. Before that can happen however Russia has to settle its dispute with Boeing, which won a $300+ million settlement in court over the breakup of their Sea Launch partnership. That settlement reportedly includes free passenger seats on Soyuz flights to ISS, which Boeing is reportedly offering to sell to NASA, which might need them. Meanwhile, Russia does not seem to have a problem with a Russian company using a Ukrainian rocket, even though Russia itself has completely banned the use of Ukrainian equipment on any of its own space rockets or capsules.

The business of commercial space sometimes amazes me.

Posted in the airport terminal in Belize City. We are waiting for everyone to arrive to take a van together to our resort, Maya Mountain Lodge.

Boeing and Russia to partner on building lunar space station?

As part of a settlement with Boeing in the Sea Launch lawsuit, the Russians are proposing a partnership with the American company for building a lunar orbiting space station.

A preliminary dispute settlement deal was reached in August. “We are preparing a document which, apart from finalizing the court case, also creates a program for long-term cooperation on a wide range of issues. We are working on projects to cooperate in low earth orbit, create moon infrastructure and explore deep space,” Solntsev told the Russian Izvestia newspaper. The two companies now plan to create nodes and units capable of synchronizing space technologies, including a docking station for a proposed lunar orbiting station. Meanwhile, Sea Launch settlement documents are set to be signed before the end of November, according to Solntsev.

It will be very interesting to see the actual agreement. I also wonder how much Boeing can really do with Russia without U.S. government approval.

Russia considers using Ukrainian rocket

For the first time since it annexed Crimea, Russia has opened negotiations with a Ukrainian company to possibly use its Zenit rocket to launch a Russian satellite.

RKK Energia of Korolev, Russia, entered negotiations with KB Yuzhnoe of Dnepropetrovsk, Ukraine, on a potential deal to launch a satellite for Angola on a Ukrainian-built Zenit rocket. Under the proposed plan, the Angosat-1 satellite would ride the last fully assembled Zenit rocket still remaining in Baikonur. The mission is seen by industry insiders as the first step in the resumption of Zenit missions, which if successful, will eventually shift from Baikonur to the Sea Launch ocean-going platform based in Long Beach, California.

The situation here is beyond complicated. Russia remains in many ways in a state of war with Ukraine. Yet, the Sea Launch platform, recently purchased by a Russian airline company, needs the Ukrainian Zenit rocket. It appears that this need is forcing the Russians to once again buy from the Ukraine. At the same time, Sea Launch remains parked in the U.S., and will likely not be available until Sea Launch and Russia settle the lawsuit Boeing has filed against the company. Meanwhile, the Zenit rocket in question however needs refurbishing and was originally built to launch a different satellite, which will have to agree to fly on a different launch vehicle.

Russian assets in France seized

Russia’s refusal to pay damages in a court case has forced France to seize $700 million owed to Russia’s aerospace industry.

In total, France has seized Russian assets worth $1 billion following the Kremlin’s refusal to pay damages to former Yukos shareholders.

In July 2014, The Hague international arbitration court ruled that Russia must pay $50 billion for expropriating the assets of Yukos. The seized assets include $400 million owed by French-based satellite provider Eutelsat to the Russian Satellite Communications company and $300 million owned by French space launch provider Arianespace to Russia’s Roscosmos space agency, the magazine reported, citing the Shearman & Sterling legal firm which represents the Yukos shareholders.

This story is similar to the Sea Launch court suit by Boeing, whom the Russians owe $300 million. In that case Boeing has moved to block Russia from selling Sea Launch.

Both stories suggest that the Russians are in big financial trouble, partly caused by a lack of understanding of capitalism. In both cases, they formed partnerships with western businesses and failed to realize that those partnerships placed financial obligations upon them. From its Soviet days Russia probably thought they could ignore those obligations if it became inconvenient, and they are now discovering that this is not really possible if they wish to sell their goods to the rest of the world.

I expect Russia’s space industry to increasingly become isolated from the rest of the world market, partly because of these events.

In related news, Roscosmos has revealed that after the initial launch at Vostochny in April, the second launch will not occur until 2017. This indicates that the first launch is merely a face-saving effort to hide the fact that construction is really more than a year behind schedule, not three months.

Boeing moves to block Russians from selling Sea Launch

In a reaction to news that the Russians have a potential buyer for Sea Launch, Boeing has sued to block the sale.

In a motion for a preliminary injunction filed with the U.S. District Court for the Central District of California April 2, Boeing argued that a sale of Sea Launch could hinder its ability to collect on a summary judgment issued last year against Energia of at least $300 million. “If Energia succeeds in selling these assets and moving all of the proceeds thereof to Russia, without paying the hundreds of millions of dollars that it owes, it would unquestionably complicate Boeing’s collection efforts,” the company’s lawyers stated in the court filing.

Energia has refused to pay that $300 million. However, since Sea Launch’s floating launch platform remains docked in California, Boeing retains a great deal of leverage in this legal dispute. I expect the court will eventually put a lock on those assets until the Russians pay up.

Russia selling Sea Launch?

The competition heats up? Though he couldn’t reveal any details, the director of Russian space agency Roscosmos today said that they have found a buyer for Sea Launch.

“I cannot tell you who the investor is, or the value of the contract, due to certain obligations. I hope that we will have something to say about it by the end of April,” Komarov said. He did, however, say that investors from the U.S., Australia, China and Europe have expressed interest in the project.

Because Sea Launch is a floating launch platform, there really is no reason the company can’t be taken over by anyone in the world. And should the buyer use the Ukrainian Zenit rocket that the platform was designed to use, the technical problems might be reduced as well.

A Russia/Brazil partnership for Sea Launch?

The competition heats up: Russia is negotiating a partnership with Brazil to operate Sea Launch.

The Sea Launch rocket is built by Ukraine, which presently has hostile relations with Russia, to say the least. The platform, built with Boeing money, is presently docked on the the U.S. west coast, which is also not what Russia wants. Moving it to Brazil and adapting it for use with a Brazilian rocket solves both problems, though the usability of Brazil’s rocket is at this moment quite questionable.

Sea Launch has suspended all operations until 2015

Russian competition cools down: The mostly Russian-owned rocket company Sea Launch has suspended all operations until mid-2015.

I suspect that the Russian government, now in control of almost all Russian aerospace efforts, is not interested in building this company up as the rocket it uses is partly made in Ukraine and is a competitor to Russia’s new Angara rocket. Everything the Russian government has done for the past year has indicated a desire to shut down all cooperative efforts with other countries and focus everything towards all-Russian efforts.

Thus, Sea Launch dies.

Russia abandons Sea Launch

Running from competition: The Russian space agency Roskosmos has decided not to spend the money necessary to buy Sea Launch and make it part of its consolidated United Rocket and Space Corporation (URSC).

Part of the reason the Russians are abandoning Sea Launch is that the rocket the ocean-going platform uses is the Ukrainian-built Zenit rocket, and Russia wants URSC to a wholly Russian operation. Rather than partner with Ukraine for profit, they will let the business die.

Arianespace and the Russian-owned Sea Launch are seeking to get the restrictions against them removed so that they can sell their services to more customers.

The competition heats up: Arianespace and the Russian-owned Sea Launch are seeking to get the restrictions against them removed so that they can sell their services to more customers.

Arianespace wants to sell its launch services to the U.S. government, something it is not allowed to do right now because of U.S. restrictions. These are the same kinds of restrictions that has prevented SpaceX from launching military satellites and which that company is now contesting.

Russia meanwhile wants to use Sea Launch for its own payloads, but because Sea Launch’s platform is based in California, the Russian government won’t allow their payloads on it because of security reasons. They want the platform moved to Russia so that they can use their own company to launch their own satellites.

The article also describes how Japan is trying to reduce the cost of its H-2A rocket by 50% so that it can become more competitive.

All in all, I would say that the arrival of SpaceX has done exactly what was predicted, shaken the industry out of its doldrums. How else to explain this sudden interest in open competition and lowering costs? These companies could have done this decades ago. They did not. Suddenly a new player arrives on the scene, offering to beat them at their own game. It is not surprising that they are fighting back.

The consolidation of the Russian aerospace industry continues as the government considers taking over privately owned Sea Launch.

The consolidation of the Russian aerospace industry continues as the government considers taking over privately owned Sea Launch.

The Russian government will a take closer look at the idea of buying commercial launch services provider Sea Launch, which is owned by a top Russian space contractor but whose key assets are based in California, Russia’s Deputy Prime Minister Dmitry Rogozin said Feb. 19. Moscow has asked the Russian space agency, Roscosmos, and Russian manufacturer RSC Energia, which holds 95 percent of Swiss-registered Sea Launch, to submit an overview of the financial situation of the maritime launch services company, Rogozin said in remarks posted on the Russian Cabinet website. The Russian government holds 38 percent of Energia, which supplies the upper stage of the Sea Launch rocket.

Should the government go forward with the deal, it likely would move the oceangoing rocket pad and command ship from Long Beach, Calif., to a Russian port on the Pacific Ocean, Rogozin said. “Something tells me that if we go for it, then the base will definitely be outside the United States,” he said.

Without question the Putin government is trying to recreate the top-down centralized system that existed during the Soviet era, with everything controlled and even owned by the government. While this might please their love of power, I doubt it will be an effiicent way to compete in the open commercial market.

Which means this consolidation is a wonderful opportunity for the new private launch companies. Soon, Russia will be out of the market, focused instead on launching Russian only satellites and spacecraft.

Posted from Rome, Italy. I am between flights, awaiting my connection to Tel Aviv.

An investigation of the Sea Launch launch failure on February 2 has pinpointed the failure to faulty parts made in the Ukraine.

An investigation of the Sea Launch launch failure on February 2 has pinpointed the failure to faulty parts made in the Ukraine.

The article is interesting in that it seems to reveal some friction between Russia and Ukraine, with the investigators making it a point to blame the Ukrainian components while specifically saying that “there was nothing wrong with the Russian-made equipment.”

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