Russian space industry increasingly dependent on China – Ukraine’s intel

The Russian space industry remains vulnerable to sanctions and critically dependent on foreign Earth remote sensing (ERS) data, with a real risk of Russian operators being displaced by cheaper Chinese products.

This was reported by the Ukrainian Foreign Intelligence Service (FISU), according to Ukrinform.

Russia’s state policy in the space sector increasingly resembles an attempt to administratively mask deep technological backwardness and poor operational performance in the industry.

Instead of addressing systemic problems, Russia is focusing on expanding the powers of the state corporation Roscosmos, turning it into a financial and administrative hub with authority to control resources, set prices, and manage access to data.

A key element of this model is the introduction, starting in 2026, of paid access for Russian government agencies to Earth remote sensing (ERS) data, the creation of a federal satellite imagery fund, and assigning Roscosmos functions of pricing and procurement from private operators.

At the same time, the industry is being pushed toward aggressive commercialization – through bond issuance, expansion of the corporation’s property rights, and even legalization of advertising – which appears more as an attempt to patch up budget gaps than a strategic development plan.

Against this backdrop, structural problems are only worsening. The number of space launches has steadily declined for the second consecutive year, individual enterprises are in financial crisis, and infrastructure modernization is being postponed.

“The industry remains vulnerable to sanctions and critically dependent on foreign ERS data, with a real risk of Russian operators being displaced by cheaper Chinese products,” the intelligence report noted.

In practice, Russia’s space policy is increasingly subordinated to the needs of the Russian Armed Forces in the war against Ukraine. The concentration of satellite data in Roscosmos’s hands and a paid model for the state allow only redistribution of scarce resources. They do not change the underlying reality: low launch rates, sanction restrictions, and dependence on external, primarily Chinese, data sources remain chronic problems for Russia’s space industry.

Read also: Investment activity declining, industrial modernization stalling in Russia, FISU reports

As previously reported by Ukrinform, Russia is returning old aircraft to service due to a shortage in its aviation fleet.

Photo: NASA / Carla Cioffi