Digest Number 466

>
> 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

The Gore-Chernymrdin trade agreement imposed on Russia in 1993, are you not aware of it ? A similar agreement was imposed on both Russia and China. It limited the number of launches per year, and it also limited their price, that must be within a few percent of western prices.

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.