The head of the Khrunichev Center: Europeans are simply “shooting themselves in the foot” with their sanctions
At the end of February, the European Union introduced the 10th package of sanctions against Russia, including the Khrunichev Center, which produces Proton-M and Angara launch vehicles, Breeze-M upper stages and other rocket and space technique. Aleksei Varochko, General Director of the Khrunichev Center, spoke in an interview with TASS about how interaction with foreign companies is now taking place, including on the ISS project, the possibility of manufacturing products in the interests of the domestic aviation industry, and flight tests of Angara missiles.
TASS: Khrunichev was included in the 10th EU sanctions list. Did it somehow affect the operation of the enterprise? How?
Varochko: Restrictions aimed at the international space activities of the Russian Federation began long before the 10th package of EU sanctions. In May 2019, amendments to the U.S. National Defense Appropriations Act were issued to restrict the use of Russian launch vehicles in the international commercial market. Further developments in the world have clearly shown that the US policy in the field of peaceful space aims to remove competitors from the market for American launch service providers, in particular, SpaceX, which currently occupies 30% of the market of all launches in the world. On February 25, 2022, the EU, with its declaration 2022/380, adopted a package of sanctions that banned business transactions with enterprises in the aviation and space industry of the Russian Federation.
The tenth EU sanctions package included the Khrunichev Center in the list of sanctioned companies, which, in principle, did not change anything. The main restrictions were already introduced against our entire industry a year ago. Probably, some of our foreign partners may be afraid of the emergence of so-called “secondary sanctions” from the EU countries, because of business ties with us. But we are not afraid of this, because the Khrunichev Center produces space technology without the use of foreign components. Neither the Proton-M launch vehicle, nor the Angara family of launch vehicles, nor the upper stages of our production have foreign components. Our foreign partners are more interested in us, in our missiles and services than we are in them. There is a shortage of launch capacities on the market, especially with the advent of low-orbit satellite constellations. SpaceX, in my opinion, will not be able to serve the market alone while maintaining an acceptable price level. The market needs start-up capacities. This affects the rise in prices for launch services. Therefore, with such sanctions, they simply “shoot themselves in the foot.” Let me note that the United States did not include the Khrunichev Center in such lists. Probably due to a deeper understanding of the market than the Europeans.
TASS: Is your subsidiary International Launch Services still operating in the USA? What difficulties do you face given the sanctions imposed on the Russian space industry?
Varochko: Yes, ILS is working. The share of GKNPTs in it is 83%, the remaining 17% belongs to RKK Energiya. During the period of sanctions, we managed to reduce the company’s costs to the most optimal level so that the company could carry out its activities without sources of new financial resources. The company is currently working on a number of settlement agreements with our existing customers for launch services on Proton-M and Angara launch vehicles.
TASS: Did you manage to conclude a new contract with Boeing to maintain ground-based bench products and test equipment to accompany the flight of the Zarya module? How is the interaction with the company going now, given its departure from the Russian Federation?
Varochko: Work with Boeing is carried out within the framework of existing contracts to ensure the flight operation of the Zarya FGB module. There are no restrictions on these works, because. The US has not imposed sanctions under the ISS program. Boeing and GKNPTs Khrunichev clearly and timely fulfill mutual obligations under this project. In the process of accompanying the flight of the Zarya FGB module, there is a need for additional work, which requires the conclusion of new and adjustment of already signed contracts. At present, a new contract with the Boeing Company is in the final stage of approval for the retrofitting of the bench electrical analogue of the FGB with new-designed control and testing equipment.
TASS: Last year it was reported that the Ukrainian company, which, under a contract with Boeing, supplies components for one of the systems of the Zarya functional cargo block of the ISS, is experiencing difficulties due to the situation in the country. Have you managed to replace the imports of components?
Varochko: Import substitution in terms of equipment supplied by the Ukrainian enterprise is not required. The interaction scheme has been adjusted in such a way that the financing of this enterprise and contract activities are carried out directly by Boeing. Boeing technical support in these works is provided by specialists from the Khrunichev Center. As a result of such an interaction scheme, the operation of the FGB system developed by this supplier is carried out in the normal mode.
TASS: The Khrunichev Center previously had competencies in the construction of aircraft. In the context of sanctions, the issue of supplying components for imported civil aircraft is now acute. Is the Khrunichev Center capable of manufacturing parts for them? Have companies approached you with relevant requests?
Varochko: Since aircraft and rocket building are close areas of science and technology, I can assure you that the Khrunichev Center has the competence to manufacture units and assemblies for the aviation industry. We have already been contacted by colleagues from the aviation industry. And what’s more, we started discussing a number of issues, we are conducting technological development and identifying free capacities for possible further cooperation. Technically, we are able to produce elements for the aviation industry.
TASS: Has the company already managed to break even? What are the results for the last year?
Varochko: The financial burden of the enterprise at the end of 2022-the beginning of 2023 is about 9 billion rubles. The planned maturity of the debt is the end of 2025. The company is able to ensure the repayment of the debt on time.
TASS: Has the debt burden been reduced over the past year? How much?
Varochko: We did not force the closing of the financial burden at an accelerated pace. For now, we will focus on the planned repayment of debt.
TASS: In what year is it planned to complete the flight tests of the heavy Angara?
Varochko: The flight test program provides for six launches of Angara-A5 heavy launch vehicles as part of flight design tests. Three successful launches have already taken place in 2014, 2020 and 2021, respectively. The fourth and fifth flight missiles were handed over by the Khrunichev Center to the state customer. The sixth is in final assembly. Further launch dates will be determined by the needs of the payload launch.
TASS: South Korea refused to launch a satellite on a light Angara. Have you found a replacement payload now? Are there any commercial orders for Angara now? Are there many?
Varochko: We have a contract to perform launch services for a Korean satellite on the Angara-1.2 rocket of the KARI Institute. The contract formally continues to operate. In case of termination, the Korean party is obliged to send an appropriate notice of withdrawal from the contract. We have already stated that we have not received such notice. Due to the sanctions, the US license for the Korean satellite was cancelled. Therefore, our Korean partners cannot deliver the satellite to Russia for the launch. We were ready to carry out launch services at the end of last year and informed the launch customer about this. However, US restrictions did not allow us to complete the contract with a launch, and we are forced to look for ways out of this situation. Now, together with ILS and KARI, we are working on settlement options for this project.
To date, there are no commercial orders for the Angara-1.2 light rocket. It is at the stage of flight design tests and does not yet have a flight history to attract customers.
In addition, sanctions are affecting that do not allow customers to use this rocket to launch their vehicles. Despite this, we see the interest shown by potential customers in Angara-1.2. And I have no doubt that the Angara light missile has good prospects.
TASS: This year it was planned to deliver to the Vostochnii an Angara for the first launch. What state is it in? When will it be delivered? Has the assembly of the Angara begun for the first launch of the Oryol, «Орел» spacecraft from Vostochnii?
Varochko: The first flight Angara-A5 for the Vostochnii cosmodrome will be delivered to the cosmodrome in 2023. The timing of the manufacture of a rocket for launching the Oryol PTK is determined by its test program. The launch of the manned PTK will be preceded by launches of the Angara-A5 and Angara-A5M missiles with the Oryol PTK in bulk and unmanned versions. The Khrunichev Center developed and defended a preliminary design for the adaptation of the Angara-A5 and Angara-A5M missiles to ensure the launch of the Oryol spacecraft.
TASS: In December 2021, the project of the reusable Angara was defended, is its preliminary design planned? When can it start?
Varochko: In 2021, a draft design was defended for the creation of the Amur spacecraft of the second stage with the Angara-A5V booster rocket, which includes an oxygen-hydrogen third stage. Within the framework of this project, the possibility of creating a reusable rocket on its basis was considered. Given the current situation, the decision to launch further work on the creation of a reusable rocket is the prerogative of the state customer. At the same time, it must be taken into account that its development must be carried out simultaneously with the development of the Angara-A5V increased-capacity rocket.
TASS: Are there already developments of a promising heavy missile that can replace the Angara in the future?
Varochko: At present, preliminary design has been completed and design documentation is being developed for a heavy-class launch vehicle with improved energy characteristics, which has received the designation Angara-A5M. It will replace the Angara-A5 rocket and its operation is planned in the future.
TASS: The modules of the promising Russian orbital station will be launched using Angara rockets. Do they need to be modified for this? Is it already running?
Varochko: To launch the ROS modules, the upgraded Angara-A5M launch vehicle will be used. Currently, preliminary design is being carried out to adapt the rocket to various modules, which will be the basic elements of the new Russian orbital station.
TASS: Has the production of components for the oxygen-hydrogen upper stage begun?
Varochko: At present, KB Salyut is developing design documentation for the KVTK upper stage. The production is technically prepared as the design documentation is ready for the production of bench products and prototypes of the KVTK, but the start of production will be given at the direction of the state customer.
TASS: How many Proton launch vehicles do you plan to launch this year?
Varochko: In 2023, the Proton-M launch vehicles with the Elektro-L spacecraft No. 4 and the Luch-5X spacecraft have already been launched.
TASS: Has the assembly of the last Proton launch vehicles been completed? When will it end? Have customers been found for them?
Varochko: The production of Proton-M launch vehicles is carried out according to the schedule and we plan to complete the production of products in 2025 in accordance with the schedule. The strategic priority of the enterprise is the manufacture of launch vehicles of the Angara class.
TASS: What will be the fate of the Proton rocket if it is not possible to launch all the rockets before the end of their service life in Kazakhstan?
Varochko: The issue is in the area of agreement between the governments of Russia and the Republic of Kazakhstan. Proposals of GKNPTs Khrunichev to resolve the issue of using all manufactured Proton missiles are under consideration jointly with the Kazakh side.
TASS: Is the assembly of the first sample of the Rokot-M rocket already underway? Is the first launch still planned for 2024?
Varochko: According to the Rokot-M project, a contract was made with our cooperation on component elements, bench products are being manufactured, as well as a number of elements of the first flight rocket with long production times.
TASS: Last year, you announced plans to expand the range of manufactured medical products, did you manage to do it? How soon can you reach the 50% diversification level?
Varochko: Now we are actively recruiting orders to expand the range of manufactured medical products and increase production. Work is also underway to expand the range of products for the national economy, in the interests of the oil and gas industry, the nuclear industry, aircraft manufacturers and the automotive industry.
Interviewed by Ekaterina Moskvich, TASS
Linked from RuSpace news