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Russian space official: “We need to stop lying to ourselves” about health of industry

"A significant part of the team has lost motivation and a sense of shared responsibility."

Eric Berger – | 155
Russian President Vladimir Putin speaks with scientists while visiting the Korolev Rocket and Space Corporation Energia in 2023. Credit: Contributor/Getty Images
Russian President Vladimir Putin speaks with scientists while visiting the Korolev Rocket and Space Corporation Energia in 2023. Credit: Contributor/Getty Images
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The chief of Russia's main spacecraft manufacturer issued a dire warning this week, saying that his corporation has reached a "critical" condition and cannot continue in its present state.

"The situation is critical: multi-million dollar debts, interest on loans that 'eat up' the budget, many processes that are ineffective, and a significant part of the team has lost motivation and a sense of shared responsibility," said Igor Maltsev, chief of RSC Energia, which is located near Moscow.

Maltsev's remarks were first published by Gazeta.ru, one of the largest Russian news websites. Later, they were reposted on the "Forgive us Yura," Telegram channel, the name of which references cosmonaut Yuri Gagarin and primarily has content that focuses on critiques of Russia's space program. Multiple sources confirmed that the statement is legitimate.

The largest company within Russia's vast, state-operated space enterprise, Energia is named after the legendary Soviet rocket scientist Sergei Korolev. It is also located in the industrial city of Korolev, where an artillery plant was rebuilt after World War II to produce rockets and spacecraft for the space age. Today, Energia manufactures the Soyuz crew spacecraft, the Progress cargo vehicle, and the modules for Russia's next-generation space station.

Difficulty paying wages

In his message to the corporation's thousands of employees, Maltsev said Energia is having difficulty paying wages and delivering the spacecraft and other products it is contracted to build.

"We need to stop lying to ourselves and others about the state of affairs, convincing ourselves and others that everything is fine with us," he said. "The time demands decisive action from us—not to sit, but to fight for the enterprise. I suggest that everyone answer the question honestly: are you ready to work for the result and make a real contribution?"

Maltsev, who was appointed director general of Energia just three months ago, closed his dark missive by suggesting it will take a miracle to save the historic space corporation.

This is an extraordinary statement coming from a senior leader within Russia's space industry. Although it is widely understood that Russia's space program is in decline, the most common tactic among Russian officials is to bluster about past greatness and talk about all the new programs that are under development.

Reality starts to sink in

In reality, the Russian space program is chronically underfunded, and the war against Ukraine has only accelerated the depletion of talent and resources. Russia cannot afford new spacecraft and rockets when it needs munitions and men for the front lines.

Maltsev's comments come as the business climate in Russia appears to be growing more desperate. The prime rate at which the Central Bank is lending money has now risen to 18 percent, and the rates for business loans are higher as capital becomes tighter in the country's wartime economy.

What all this means for Russia's space industry and its participation on the International Space Station is not clear. Recently, the country scaled back the number of cargo and crew missions to the space station, from four flights every two years to three, as a cost-saving measure. However, Dmitry Bakanov, the relatively new leader of Russia's overarching space corporation, Roscosmos, also recently said the country would like to work with NASA on the space station through 2030.

NASA and Roscosmos swap astronauts such that one Russian cosmonaut flies on each Crew Dragon mission to the space station, and one NASA astronaut flies on Soyuz flights. Russia provides propulsion services to the station, which were until recently considered essential to flying the orbiting laboratory for the remainder of its lifetime. However, a Dragon spacecraft presently docked to the space station is expected to perform a demonstration of its capabilities to boost the space station should the need arise.

Photo of Eric Berger
Eric Berger Senior Space Editor
Eric Berger is the senior space editor at Ars Technica, covering everything from astronomy to private space to NASA policy, and author of two books: Liftoff, about the rise of SpaceX; and Reentry, on the development of the Falcon 9 rocket and Dragon. A certified meteorologist, Eric lives in Houston.
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