Sanctions extend terms of producing Russian satellites by10 months

MOSCOW, Dec 24 (PRIME) -- Western sanctions on dual-use equipment exports to Russia extended the deadline for the construction and launch of Russian connection satellites by 10 months, TelecomDaily reported Wednesday.

“The terms of satellite production have grown by about 10 months as compared to usual terms of 30–32 months, which existed on January 1, 2013. This is due to the adaptation to sanctions on components,” Alexander Ganin, first deputy general director of the Russian Satellite Communications Company (RSCC), told reporters.

“We are preparing plans in such a way that we could ensure the provision of services in those orbital positions, which we need and which we cannot lose in advance. That is why, we need, for example, to conclude a contract in January to put satellites into orbit at the end of 2018.”

The company’s satellite fleet expanded to 11 apparatuses this year; four new satellites will be put into orbit by the end of 2018.

RSCC General Director Yury Prokhorov does not expect lower demand for the company’s services because of the anti-Moscow sanctions. “We provide services in 46 countries. Crisis events won’t affect either the revenue or the volume of services. If there is a fall in demand on the interior market, it will be offset successfully on the exterior market,” he said.

The company raised the share of services provided abroad to 30% in 2014 from 25–26% earlier.

Preliminary revenue of RSCC will rise 36.7% to 8 billion rubles in 2014 The company expects its revenue to grow 10–15% in 2015.

(54.5687 rubles – U.S. $1)

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