Rogozin Promises Vladimir Putin to Double Launches to 45 This Year

At the meeting with General Director of the Roscosmos State Corporation for Space Activities Dmitry Rogozin. (Credit: Russian President’s Office)

MOSCOW (President Putin PR) — Vladimir Putin had a meeting with General Director of the Roscosmos State Corporation for Space Activities Dmitry Rogozin to discuss the performance and development plans for the space industry.

President of Russia Vladimir Putin: Mr Rogozin, let us discuss the space industry’s performance last year and development plans.

General Director of the Roscosmos State Corporation for Space Activities Dmitry Rogozin: Mr President,

We were working to improve our performance in three fields. The first had to do with the choice of our development priorities. The second concerned the reduction of non-manufacturing expenses by at least 15 percent and increasing the corporation’s revenue by adopting new competences and entering new markets, about which I would like to speak later. We also needed to dramatically improve production discipline at the corporation and all the subordinate agencies. I have introduced a system of the officials’ personal responsibility for budget execution and have taken measures to reduce the corporation’s budget.

I would like to comment on the following charts. The consolidated proceeds of Roscosmos increased from 304 billion rubles in 2017 to 387 billion. This year we plan to increase the revenue to 445 billion rubles. It was the first time we reported a consolidated net income, which we hope to increase fourfold in 2019. Our labour efficiency has also increased.

The next chart shows our indicators. In the past, we failed to properly organise the use of budgetary allocations. As of July 1, 2018, we distributed only 22.5 percent of the approved budget commitments.

To improve the management of budgetary funds and reduce our arrears, a system of my personal operational control as well as monitoring by other corporation executives was introduced at the corporation. In the second half of 2018, we improved the cash execution of the budget to 97.4 percent, thanks to the use of the treasury-based system of execution. We have used all our budgetary allocations to sign contracts.

I would also like to report on our debt portfolio. The Roscosmos management team has taken measures to reduce the corporation’s debts by 10 billion rubles in the fourth quarter of 2018. We will further reduce them by another 10 billion rubles this year.

As regards the structure of our receivables, I would like to draw your attention to the fact that 90 percent of the debt was formed under contracts concluded before 2018. At the same time, more than 80 percent of overdue receivables are from before 2015, that is, arise from long-term contracts that were not divided into stages. Last year, the accumulated overdue receivables were zero.

We have some results in terms of balances on treasury accounts. Due to the measures we have taken, the balances on the treasury accounts of Roscosmos companies for the second half of the year were reduced by 6 billion rubles. This year, we will reduce their balances by a third – by no less than 20 billion rubles.

The so-called revolving money advancing is a structural measure we use to reduce the balances. That is, we do not pay advances to enterprises until they have concluded agreements, contracts with their cooperative entities, and until they have accounted for the use of the previous advances. This policy immediately yields tangible results.

I would like to specifically report on the Khrunichev State Space Research and Production Centre. In autumn 2018, together with the Ministry of Finance, we promptly worked out an arrangement to provide support to the enterprise within the limits of the available funds under the state programme. In a short period of time, we reached agreements with its creditors to postpone the repayment of the body of the loan to 2029. Now they are making payments on all their loans.

The company is working, and has fully restored its production activities, while the current burden on the Khrunichev centre has been cut by 30 billion rubles in just six months. The situation remains difficult, but Roscosmos is in control.

As for the production activities, I would like to report that the control system itself is being optimised. We are beginning to shape an integrated structure. The first unit will be established at NPO Energomash. By the way, I would like to invite you to visit the enterprise, to show the quality of production, and the work process. This is our leading engine manufacturing asset.

This year, we are proceeding to build an integrate structure in satellite construction, in rocket building, and instrument making. This way we will avoid duplicating functions in enterprises and introduce a single technical policy throughout the industry.

As for the new medium rocket, the Soyuz-5, the project has been launched, the cooperation of enterprises has been established, and production facilities have begun to prepare for this project. In 2022, we plan to begin flight tests of the Soyuz-5 with the new manned ship.

About the super heavy rocket, the general schedule has been endorsed for building the ground-based space infrastructure, and the exterior design of this rocket has practically been chosen. I will also report to you in more detail.

Vladimir Putin: Is it for the lunar programme?

Dmitry Rogozin: Yes, exactly.

The tests of the Angara-A5 heavy lift launch vehicle are to be resumed this year. On December 21, shortly before the New Year, we successfully launched the Proton-M rocket. This year we are sending six Protons to Baikonur. That is, we are restoring our positions in the market of heavy lift launch services.

I must note that, in 2018, we had 22 launches; in 2019, Mr President, 45 launches are planned – more than double. The workload is large, but I believe we can handle it.

As for the Sarmat combat missile, I will also report that we are proceeding according to schedule.

Vladimir Putin: Good.

  • 76 er

    The day can’t come soon enough when whatever Rogozin says or does no longer matters.

  • redneck

    Just for clarification, is that launches or successful launches? Is a downrange impact considered a successful sub-orbital mission? Can cosmonauts breathe vacuum through the predrilled holes?

    I’m curious about details

  • Ignacio Rockwill

    We shall double our efforts!

  • Andrew Tubbiolo

    Double launches this year? The payload pipeline takes years to line up. Maybe he meant he’d take Putin out to lunch twice as many times this year as last. If I were him, I’d offer Putin some Canadian Poutine twice as much this year as last year. Twice the Poutine, twice the gravy, twice the cheese curd, TWICE the FRENCH FRIES!

  • Jeff Smith

    I hope so, Director, for your sake…

  • Paul_Scutts

    This script reminds me of when owner/operators get in front of the camera and do their own ads. I don’t know what’s creepier, that or that people are dumb enough to believe this sh!t.

  • ReSpaceAge

    No different than listening to the other guy that works for Putin, doing the state of the union speech.

  • CharlesHouston

    My thought exactly – if Rogozin puts a lot of pressure to stack rockets and press the “Go” button it is going to result in more failed launches. Launch pressure produces failures. The Russian space workforce (and their entire economy) is under tremendous strain. I think that they also have an aging workforce, they need infrastructure investment (the new space port is a good sign but it sounds like there was a lot of diversion of money…), etc etc.

  • Douglas Messier

    Hey Mr. Trampoline Man
    Launch a sat for me

  • duheagle

    I’d say that day has already arrived.

  • 76 er

    Roscosmos/Rogozin maintains a monopoly on ISS access. Commercial crew is not quite here yet and until either SpaceX or Boeing launches astronauts there the Russian regime is in the catbird seat.

  • duheagle

    The first unmanned Dragon 2 test launches in a bit over three weeks. The Roscosmos lease on that “catbird seat” is close to running out. By the time both SpaceX and Boeing have put crew up on ISS – by late summer as things look now – that lease will have entirely expired.

  • 76 er

    Yeah, that’ll be a sweet day. It would be nice to see Rogozin get fired, too but not gonna hold my breath on that one.

  • publiusr

    Oh, the look on Putin’s face….a poison glance.

    The chief designers roll in their graves