Roscosmos to Sell Over $124m in Assets Due to Sanctions

3rd Mar 2024
Roscosmos to Sell Over $124m in Assets Due to Sanctions

According to local media reports, Russia’s Federal Space Agency, Roscosmos, intends to divest assets worth over 11.4 billion rubles ($124 million) due to the impact of Western sanctions imposed as a result of the broad-scale invasion of Ukraine. 

Roscosmos Struggles Amid Sanctions and Loss of Key Customers

An official from the company informed the Russian media outlet RBC that 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 money generated from selling the assets will be used to improve the economic and financial state of Roscosmos’ businesses. 

The decision was made because Roscosmos lost nearly 80% of its export income due to the Russian invasion, resulting in the loss of core partners and orders. According to a previous report from Bloomberg, the company has experienced a loss of significant customers, such as South Korea’s space agency (KARI) and UK-based communication company OneWeb Limited, resulting in the removal of a key source of foreign funding, since the launch of the invasion of Ukraine in February 2022. In response to the sanctions, Russia appropriated OneWeb satellites due for launch by Roscosmos, causing OneWeb to write off $150 million in satellites.

In December 2023, Yuri Borisov, the Director General of Roscosmos, commented on state television 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. The company has plans to sell several properties in 2024, including those situated in Moscow, nearby areas, and near Krasnodar, Samara, Tver, and other regions as well.

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