
>
> Message: 5
> Date: Wed, 23 Oct 2002 16:43:08 -0400
>
> >Despite the high profit margin, the low volume of their sales cannot support their entire space program.
> >The USA and France have not allowed them to drop their prices. If Soyuz were sold for a more reasonable profit margin (e.g. 10% instead of 1000%) then they would capture the entire world market, and increase their volume considerably, and drive down launch costs considerably. But the western launch companies would scream bloody
> >murder, and they have very powerful lobbyists in Washington and Paris.
> >
> Hi Charles,
>
> do you have any references for this information? What sort of
> influence are the USA and France exerting on Russia that could possibly
Actually, the Russian trade agreement expired first of this year, so I believe Russia is now technically free to charge whatever prices they like, and to launch as much as they like. However, the watchful eye of the world is still upon them, and there is an unspoken understanding (IMHO) that restrictions will return if Russia drops their
pricess too much. Also, note that marketing of Proton, Soyuz and Zenith are controlled by US/French dominated companies, i.e.. ILS , Starsem and Sea-launch. Each of these companies has a western launch provider as senior partner, so they will not be dropping their prices much below western levels.
I do not know what the status of the Chinese trade agreement is, right now they are under a state of total sanction, launches on Chinese rockets are prohibited right now, but I think that might be changing soon.
>
> enforce such a request? It just seems extraordinarily counterproductive,
It was a bizarre agreement to be sure.
The western launch companies have got it sewn up quite nicely to their advantage.

Actually, the Russian trade agreement expired first of this year, so I believe Russia is now technically free to charge whatever prices they like, and to launch as much as they like. However, the watchful eye of the world is still upon them, and there is an unspoken understanding (IMHO) that restrictions will return if Russia drops their pricess too much. Also, note that marketing of Proton, Soyuz and Zenith are controlled by US/French dominated companies, i.e.. ILS , Starsem and Sea-launch. Each of these companies has a western launch provider as senior partner, so they will not be dropping their prices much below western levels. It may not help the Russians to do it anyway- they need the cash. Still, their list prices undercut Ariane by about 3x. The Russian costs rather than price are amazingly low.
I do not know what the status of the Chinese trade agreement is, right now they are under a state of total sanction, launches on Chinese rockets are prohibited right now, but I think that might be changing soon. Huh? How are they supposed to stop them? A direct attack on one of their launches could be considered attack on the country itself. I haven't noticed them not launching.
It was a bizarre agreement to be sure. The western launch companies have got it sewn up quite nicely to their advantage. Maybe the French did. Most of the American launches are too expensive. The French hold more than 50 percent of the launch market.

>
> Huh? How are they supposed to stop them? A direct
> attack on one of their
> launches could be considered attack on the country
> itself. I haven't
> noticed them not launching.
>
contain US technology.
That is pretty much the entire comm satellite market.
That way it is illegal for the satellite owner to ship
their satellite to China from the United States. It
is also illegal for component suppliers to ship
outside for satellites which are destined for China.
Penalties are severe.
That is how it works.
Regards,
Charles R.
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