Russia plans to send money from private investors into space. With return

Until 2030, 1.7 trillion rubles will be subsidized for the implementation of the national project, another 490.6 billion rubles will be money from non-state investors. As a result, the share of business investments in the Russian space industry should be 35 percent (686.4 billion rubles), against 5 percent in 2024.

The national project provides for eight areas: "Satellite communications and Earth observation," "Navigation and time," "Manned space exploration," "Sovereign competitive access to space," "Space science," "Development of space nuclear energy in Russia," "Production and technological system" and "Personnel for space."

However, an urgent question: how can space be interested in private business? Of course, the imagination draws the merchant-shuttle Han Solo, who on the personal starship "Millennium Falcon" carries anaptanium from Mars to the moon. But this is too bold an association. Manned astronautics in Russia has always been a monopoly of the state. If only because it requires such colossal costs that only the federal budget can master them.

Just, the most investments in the national project are provided in the direction of "manned cosmonautics" - 584.6 billion rubles. Private investment will be actively attracted, but their participation mainly implies companies' access to contracts and procurement in the space industry. In addition, investors will be able to acquire shares in space industry enterprises.

The state is waiting for direct investments from private business in the project to form a low-orbit satellite constellation "Dawn." More than 500 billion rubles will be allocated for the development of satellite broadband access in 2026-2036 within the framework of the national project, of which 60 percent is expected to be received from non-state investors.

To broaden the horizons, it is necessary to clarify: in most space powers, commercial capital is used more widely than government investments. In general, the planet Earth: the volume of the global space market by 2027 will reach $32.4 billion, and the share of state investments in space is only 25 percent and continues to decline.

The leader in the field of private astronautics today is undoubtedly the United States. Commercial space began in the United States in 2006, with the Commercial Resupply Services program. It was a partnership program between NASA and techno-companies that had the potential to replace the state, in terms of deliveries to the ISS of cargo and astronauts. Among the promising startups was SpaceX.

Elon Musk was given access to a 1960s development rocket engine, which he managed to upgrade. NASA at the first stage provided Spacex the possibility of using cosmodromes and test stands. Already in 2015, the Musk Crew Dragon spacecraft, launched into orbit by the Falcon 9 rocket, successfully delivered astronauts to the ISS. And in 2019, Falcon 9 triumphantly delivered the first 60 pieces of low-orbit space satellites to the "workplace" as part of the Starlink project.

But private space in the United States is developing not only thanks to Elon Musk. Rocket science and manned flights, we repeat, are mega-costly sectors of the space industry. They require herculean investment during the design and testing phase. But it is they who move forward the most profitable and promising industry - space tourism. Virgin Galactic is led by multi-billionaire Richard Branson, who was originally created for orbital and suborbital tourist flights, and Blue Origin, founded by Amazon CEO Jeff Bezos. In total, there are about a dozen similar competing companies.

The commercialization of space is gaining momentum in China - they are also working on the development of space tourism. In addition, back in 2020, four Chinese private companies received $1 billion in investments to develop a small satellite launch system. One of them, Changguang Satellite, is developing a remote sensing system for the Earth, and the other three are light launch vehicles.

Now let's consider from which launch pad it is proposed to go into space for Russian private investors. Until recently, the field of rocket science and space launches in our country was closed to private companies, including due to bureaucratic procedures. In the 1990s, there was an attempt to pass the first law on commercialization in space activities. The document was in the plans of the State Duma for consideration, but remained in the draft. It is not surprising that space activities in Russia are still as regulated as possible, and some technical aspects are also classified.

Examples of restrictions: to rise to an altitude of more than 100 km - this is the border beyond which space begins directly, you need a special license. For flights at an altitude of about 30 km, in the stratosphere, it is required to close the sky for other ships. The flights of ships with crew (tourists) are subject to the most stringent technical and legal requirements.

Therefore, in Russia today you can count only three more or less "live" private space companies. This is Success Rockets, which, with the support of Roscosmos, is developing ultralight rockets and satellites. The S7 Space company, which provides space launch services from offshore platforms, presumably, also with the support of Roscosmos. And also the Stratonavtika company, which has the ability to send tourists or equipment to the stratosphere, to a height of about 30 km.

An attempt to create a Russian Virgin Galactic to launch space tourists into low orbit ended in collapse. Founded in 2014, the CosmoKurs company was unable to obtain access to technical documentation from the Ministry of Defense of the Russian Federation in order to build its own suborbital rocket. The construction of a private cosmodrome also had to be curtailed. In April 2021, CosmoCourse announced its liquidation.

Despite the initially losing position of Russian companies, there are still prospects for the development of domestic private business in space. At the moment, investors are most accessible to the development of a satellite network - communication, Internet, data processing and transmission. This area requires relatively small investments, quickly pays off and is in demand in the market.

Space ecosystems, based on a network of satellites, ready to provide services for digital remote sensing of the Earth, providing broadband Internet access, etc., are likely to become a key driver of attracting private investment in Russian space. In second place is the delivery of goods to the future Russian orbital station. Further, tests on private sites of rocket systems and technologies, investments in reconstruction, or the construction of cosmodromes are possible. At the very end of the list of commercial services: flights with crew, or tourists.

For the successful development of private space projects, scientific research is also needed, which will require a change in the legislative framework and government support.