Oneweb loses $230m after Russian action

TAXPAYER-BACKED Oneweb has taken a $230m (£199m) hit after Russia forced it to cancel its planned rocket launches and seized its satellites.

The London-based company had been due to fire 36 of its satellites into orbit in March from the Baikonur Cosmodrome in Kazakhstan, which is controlled by Russia’s space agency.

But after the invasion of Ukraine, the Kremlin denied Oneweb permission to launch until it guaranteed its satellites would not be put to military use and ordered the UK Government to sell its stake in the company.

Oneweb refused. Its board cancelled its launches and evacuated its staff out of Baikonur. Russia then seized the satellites. The aborted launches and the “loss of satellites not returned to the group” cost the company $230m, it said in its annual accounts.

Russia has since placed Neil Masterson, Oneweb’s chief executive, on its own sanctions list. The British company, which is planning to merge with French satellite company Eutelsat, reported an overall loss of $390m for the 12-month period to the end of March. It recorded its first revenues of $9.6m following the acquisition of a US business last year.

Oneweb is planning to develop a 650-strong satellite network that will provide broadband connectivity.

In July, French-listed satellite company Eutelsat announced a takeover of the company. The British Government is due to retain a stake in the combined Anglo-french business.