Annual financing for Russian space activities currently amounts to just 7 billion rubles, compared to 131 billion rubles in constant prices in 1989, Yuri Koptev said at a round-table discussion on defense industry problems held at the fourth St. Petersburg economic forum.

We have created a certain surplus on which we are now living, Koptev said.

He said Russia's orbiting satellites are in a critical state. There are currently 714 operating satellites in various orbits, of which 390 belong to the United States and 111 to Russia. Of the latter, 82 have outlived their warranties, and 60% of the 111 have outlived their service life, Koptev said.

If we do not ensure our presence in space, we could lose our single information area, Koptev said. Russia currently has 86 communications channels, while it needs 180 and is forecast to require 220, he said.

Commenting on forecast demand for satellite transponders, Koptev said that in 2002-2006 we must virtually triple our communications resources. He also noted that earnings from space launches and the sale of space photographs are much lower than those offered by the telecommunications market, including satellite telecommunications.

As regards the problem of launching satellites to maintain the international frequency resources granted to Russia, Koptev, citing Russian Communications Minister Leonid Reiman, announced that the problem of Russia possibly losing the orbital locations granted earlier but not yet used has been solved over the past few days.

The communications minister dealt with this issue at the last session of the International Telecommunications Union in Istanbul.

At the same time, he considers it not normal that Russia has occupied only 18 of 54 satellite location granted and only 18 of 133 networks.

Russia plans to carry out 47 launches this year, including both military and civilian projects, the head of the Russian Aerospace Agency said.

Russia has already carried out 12 launches this year, of which 11 were civilian and commercial launches, Yuri Koptev said at a round-table discussion on defense industry problems held at the fourth St. Petersburg economic forum. The country launched two communications satellites and plans to put a third one in orbit on June 22, he said.

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