Rocket launch exposes Russia’s technology gaps

Space industry is a bellwether of Moscow’s technological development and import substitution efforts

Russia on Thursday successfully test-launched a heavy-lift rocket called the Angara-A5, its first space rocket developed after the collapse of the Soviet Union. Though the Kremlin has touted it as a success, the event was plagued by several setbacks. The launch at the Vostochny Cosmodrome was initially planned for December 2023 but was postponed. It was rescheduled for April 9 but canceled at the last minute.

Officials said there was a failure of the pressurization system of the rocket’s central block oxidizer tank.

It was postponed again the following day, due to technical issues, before the rocket was finally launched on April 11. This case highlights Moscow’s challenges in the face of Western sanctions, especially in technology-heavy sectors such as the space industry.

For Moscow, the space industry is critical not only in maintaining Russia’s status as a space power but also in ensuring the continued progress of its defense and tech sectors. Space technologies are key to guaranteeing the security of communications, the internet and global navigation systems, which have both civilian and military purposes.

Since the Soviet era, the West has repeatedly tried to impede Russian advancements in these technologies. For example, restrictions were imposed in the 1990s when Russian rockets entered commercial markets, and after 2014, when Russia annexed Crimea. On Feb. 24, 2022, the first day of Russia’s full-scale invasion of Ukraine, the U.S. restricted the sale of certain advanced technologies to Russia, which led to supply shortages, the cancellation of launches and the suspension of scientific programs.

Since the sanctions came into effect, the space industry has become a bellwether of Russia’s technological development and import substitution efforts, not only in space but also in related industries, from mining to manufacturing to transportation. The Kremlin believes successful rocket launches can demonstrate that, despite sanctions, Russia can develop new technologies and maintain its space program while also continuing to supply its military campaign in Ukraine and stimulate its economy.

The Kremlin doesn’t have much choice but to develop more advanced technologies that can aid its war effort and ensure internet accessibility for all regions of the country. The Soviet-era Proton-M rocket, which Angara-A5 was designed to replace, will be in operation until only 2025. Angara-A5 has several key advantages over its potential predecessor, including that it is kerosene-based and does not use toxic fuel components. It’s also produced with only Russian components and can be launched from Russian cosmodromes, unlike Proton-M, which is launched from the Baikonur Cosmodrome, a Russian-operated spaceport in Kazakhstan.

Russia doesn’t want to rely on a foreign country to

conduct its space operations, especially considering that Kazakhstan has recently emphasized its neutrality, fearing it could be hit by secondary sanctions if it’s seen by the West as helping Russia’s war effort.

This week’s test-launch was the first for this particular rocket at the Vostochny Cosmodrome in Russia’s Far East region. Previous launches took place at the Plesetsk Cosmodrome in the northwestern Arkhangelsk region in 2014, 2020 and 2021. They were moved to Vostochny for financial and safety reasons. According to the Kremlin, Vostochny will also enable the country to conduct more frequent launches on its own terms, without having to rely on a foreign facility.

In addition to Angara-A5, Russia hopes to produce completely domestically operated communication satellites by 2026, after foreign companies stopped providing satellite services. However, Moscow’s space industry has suffered many stumbling blocks due to continued reliance on foreign technologies and components, despite its attempts to ramp up domestic manufacturing and innovation.

The company that produces engines for the Angara family of rockets indicated that it had to find Russian analogues, or at least analogues from friendly countries, of parts needed to manufacture the engines in order to fulfill the order. Russia is also still dependent on imported microelectronic components, which has especially affected the space program. Development of Russia’s Glonass navigation system has also stalled due to reliance on foreign-made parts.

The satellite uses 6,000 types of imported electronic components.

In 2023, Russian imports of communication base stations and their components increased by 15 percent. These parts are produced mainly by foreign tech firms Huawei, Ericsson and Nokia and supplied most likely through Russia’s parallel imports program rather than direct contracts, meaning they are likely purchased at retail and at higher prices than in the past.

Clearly, there are many gaps in Moscow’s import substitution scheme due to a lack of personnel, equipment and modern technology. In the energy sector, Russia remains almost completely dependent on foreign sources of catalysts, used in the production of various fuels, including the kerosene used by Angara rockets.

Cutting off supplies from abroad completely would have a ripple effect, potentially closing production in sectors from automotive to food.

In 2024, under Moscow’s Action Plan for Import Substitution in the Oil and Gas Engineering Industry, Russia aims to increase self-sufficiency in the geological exploration, geophysical equipment and seismic equipment category to only 40 percent; metal-cutting machines to 33 percent; pumps to 55 percent; equipment and materials for drilling, cementing wells and overhaul of wells to 45 percent; and reactors and coke chambers to 55 percent.

Sanctions have also caused delays in repairing oil refineries – which forced the fourth-largest refinery in the country to reduce gasoline production by 40 percent. Adding to these deficiencies, production facilities are now also concerned about Ukrainian drone attacks, which have become more frequent since the start of this year. These strikes have targeted oil refineries, which have already reduced output by about 10 percent, and plants focused on the domestic market.

Russia’s space industry is managing other long-term problems, such as corruption and brain drain. A shortage of engineering and scientific expertise creates risks for the quality of services and reliability of the satellite fleet. Moreover, developing expensive advanced technologies requires substantial funds, which could attract corruption.

In 2019, Russia’s prosecutor general said more than 1.6 billion rubles ($17 million) to modernize the country’s production base and weapons industry were stolen from state-owned firms Roscosmos and Rostec.

It seems that Moscow realizes now that its transition to import substitution will be slow, complicated by structural problems and complexities arising from sanctions and geopolitical disruptions. But time is running out, especially when it comes to critical industries like space.

The lack of funds and increasing difficulty in implementing the parallel imports scheme add to the roadblocks, and as deadlines approach, the Kremlin will seek more external funding and cooperation from its remaining international partners. In the meantime, it will tout its few successes – including the Angara-A5 test launch – to distract from its failures.