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Russia plans to merge Roscosmos with URSC

Connectivity BusinessbyConnectivity Business
January 22, 2015
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The wide-ranging reform of the Russian space sector continues apace with President Vladimir Putin approving plans to merge the Russian space agency Roscosmos with United Rocket and Space Corporation, the joint stock company that has been set up to…

The wide-ranging reform of the Russian space sector continues apace with President Vladimir Putin approving plans to merge the Russian space agency Roscosmos with United Rocket and Space Corporation, the joint stock company that has been set up to consolidate the country’s space assets.

In a working meeting between President Putin and Prime Minister Dmitry Medvedev on 21 January, the latter outlined plans to reform Roscosmos.

Medvedev said: “Some time ago, we prepared suggestions on creating a whole range of new structures in addition to Roscosmos, including the United Rocket and Space Corporation as a joint stock company. It is working, but its operating experience shows that the problems in the industry are more serious, more complex, and it is imperative to focus the efforts of the government and business somewhat differently – the way it was done before in the nuclear sector.

“So what the Cabinet is suggesting to the President is to create a new Roscosmos corporation. And of course, we are not talking about strengthening the role of government once again; in this case, we are suggesting streamlining the management system.

“We hope that if the President supports this suggestion and a corresponding draft law is prepared, then having a corporation that will exercise management functions on the one hand and business functions on the other will allow us to solve the highly complex, multifaceted challenges faced by the space industry.”

Putin gave his support to the plan, which will see Roscosmos and URSC merged under the former’s name. He also approved the appointment of URSC’s CEO Igor Komarov as the new head of Roscosmos.

In doing so, Roscosmos’ current incumbent Oleg Ostapenko has been relieved of his position. He has been offered the role as chairman of the board of directors of one of the holding companies that would make up Roscosmos but it is unclear whether he has accepted this.

With URSC still in the process of being created, Roscosmos will remain an administrative governing body under the control of the Russian Cabinet. Ultimately, though, all management functions at the agency will be transferred to the new corporation.

Medvedev’s plan to emulate the reform of the country’s nuclear sector refers to the creation of Rosatom in 2007. The state corporation brought together all the country’s atomic industries, both military and civil, as well as the ministry overseeing them, the Federal Agency on Atomic Energy.

Tags: Roscosmos
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