VZCZCXRO3901
PP RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD
DE RUEHMO #1233/01 1231103
ZNR UUUUU ZZH
P 021103Z MAY 08
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC PRIORITY 7897
INFO RUEHZN/EST COLLECTIVE
RUEANAT/NASA WASHDC
RUEKJCS/SECDEF WASHDC
RUEAHQA/HQ USAF WASHINGTON DC

UNCLAS SECTION 01 OF 02 MOSCOW 001233 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: KSCA PREL PARM TSPA RS
SUBJECT: RUSSIA PUSHES TO COMMERCIALIZE SPACE 
 
REF: (A) MOSCOW 638 
(B) STATE 19459 
(C) 07 MOSCOW 01637 
 
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Summary 
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¶1. (SBU) Despite delays in the development of Russia's GLONASS 
satellite navigation system as an alternative to U.S. GPS, the GOR 
is pressing forward to make GLONASS global by 2010 and to develop 
Russia's commercial space industry.  To achieve these goals, the GOR 
has granted Russia's Federal Space Agency (Roscosmos) centralized 
control over all GLONASS' civilian operations.  It also launched a 
"Space 2020" program to encourage ambitious space programs and 
attract global investment in Russia's space projects.  END SUMMARY. 
 
 
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¶2. (SBU) On March 21, the GOR's Military-Industry Commission (MIC, 
an advisory council chaired by First Deputy Prime Minister Sergey 
Ivanov) discussed the failure of GLONASS to meet its target of full 
coverage of Russian territory by 2008.  The MIC identified GLONASS' 
lack of centralized management as a key barrier to success.  Members 
noted that there are several individuals or agencies in charge of 
different parts of the process, but no single entity to oversee the 
entire project.  In addition to recommending that one Ministry or 
Agency be assigned to manage all aspects of GLONASS, the MIC also 
proposed that a Chief Engineer be appointed to coordinate the 
development and production of GLONASS/GPS receivers. 
 
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...REQUEST MORE MONEY 
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¶3. (U) On March 27, Russia's Federal Space Agency (Roscosmos) asked 
the GOR to double its yearly funding for GLONASS to 20 billion 
rubles ($869 million.)  Roscosmos Head Anatoly Perminov claims the 
increase is needed to make GLONASS fully operational.  The previous 
allocated funding ($410 million in 2007, 430 million in 2008 and 450 
million in 2009) is not sufficient to reach the GOR's goal of global 
coverage by 2010. 
 
¶4. (SBU) The impetus behind the large funding request became clear 
on April 7, when the GOR announced that Roscosmos would assume 
oversight responsibility for all GLONASS civilian operations.  This 
decision significantly expands Roscosmos' authority, which 
previously extended only to launching and maintaining GLONASS 
satellites.  It also fulfills the MIC's recommendation to assign a 
single manager to the project.  Roscosmos was selected over other 
ministries under consideration, including Defense, IT and 
Telecommunications, and Economic Development and Trade.  The GOR 
amended Roscosmos' by-laws to confer full GLONASS oversight 
authority. 
 
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THE BUSINESS SIDE OF SPACE 
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¶5. (U) On April 11, President Putin's Security Council discussed a 
"Space 2020" program, in which Putin pledged to implement ambitious 
space programs and attract global investment to Russia's space 
projects.  In his address to the Council, Putin underlined the 
importance of GLONASS becoming "global and competitive" in space and 
called for an end to Russia's role as a "space taxi cab driver." 
Putin suggested that Russia's rapidly-developing business community 
could help finance space projects that are now dependent on 
government funding. 
 
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GLONASS UPDATE 
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¶6. (SBU) On April 4, Sergey Revnivykh, Deputy Director for 
Roscosmos' Central Research Institute of Machine Building (CRIMB), 
gave us an update on GLONASS' satellite deployment.  Revnivykh 
reported that there are currently 16 satellites in orbit -- 3 
"GLONASS" models and 13 "GLONASS-M" models.  One of the 16 is not 
operational (Roscosmos terms it "in maintenance".)  The 15 
operational satellites provide about 75 percent global coverage. 
Revnivykh admitted that GLONASS is a year behind schedule, but 
insisted that such a delay is normal given the complexity of the 
technology.  He noted that GLONASS designers expect satellites 
guaranteed for three years of service life to actually operate for 
five years, providing a boost to total coverage.  Roscosmos is 
planning two more launches in September and November, 2008, bringing 
 
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total satellites to 18, the number required for full Russian 
coverage.  An additional six satellites, needed to provide global 
coverage, will be launched between 2009 and 2011. 
 
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STYLE OVER SUBSTANCE AT SPACE FORUM 
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¶7. (U) As part of Putin's plan to attract global investment to 
Russia's space programs, GOR Ministries and industry groups 
sponsored the Second International Satellite Navigation Forum, April 
7-8 in Moscow.  The Forum attracted 1200 participants from 25 
countries, representing more than 350 businesses and organizations. 
Organizers played background music by "Space" (a 1980s French group 
popular in the Soviet Union), while Forum staff donned shiny silver 
costumes.  Models roamed the halls in space-themed body paint (and 
little else.)  The Plenary featured a laser light show.  Despite 
these attractions, keynote speaker Deputy Prime Minister Sergei 
Ivanov was a no-show, and the Forum was headlined by Yuri Nosenko, 
Deputy Head of Roscosmos. 
 
¶8. (SBU) At the Plenary, Yuri Urlichich, Chief Designer for GLONASS 
and Head of the Russian Research Institute of Space Device 
Engineering and (which supplies instruments for GLONASS satellites), 
noted that Roscosmos intends to eventually expand the GLONASS 
network to 30 satellites, to protect the grid from malfunctioning 
units.  (Note: the U.S. GPS system has 31 satellites for the same 
reason.)  Pedro Pedreira, Executive Director of European GNSS 
Supervisory Authority (GSA), also provided an update on the EU's 
Galileo system. 
 
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Comment 
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¶9. (SBU) We have learned rumors for months that the Medvedev 
Administration might replace Roscosmos Head Anatoly Perminov.  DPM 
Ivanov's strident public criticism of Perminov's failure to meet 
GLONASS targets was a primary impetus for the rumors.  There are 
also indications that as Prime Minister, Putin intends to assert 
direct control over Roscosmos and manage the development of space 
technologies. 
 
BURNS