IS RUSSIA GOING BROKE? Kazakhstan Seizes Russia's Launch Facility at Baikonur Because Russia Can’t Pay Its Debts

On March 7th, 2023, Kazakhstan seized control of the Biaterek launch complex at the Baikonur Cosmodrome – Russia’s main launch site since 1955. According to statements by KZ24 News and The Moscow Times, the Kakazh government has impounded Russian assets at the Center for Utilization of Ground-based Space Infrastructure (TsENKI), a subsidiary of Roscosmos. It is also preventing Russian officials from leaving the country or liquidating Roscosmos assets. This incident is another example of how Russia’s space program is suffering collateral damage from the war in Ukraine.

The decision was made because the Russian State company failed to pay its debts to the Kazakh government, which are now over 13.5 billion tenges (2.258 billion rubles; $29.7 million). This debt is part of the “Baiterek” program, a Kazakh-Russian joint venture related to the development of the Soyuz-5 booster. This program was created in 2005 to speed the transition from launch vehicles that rely on highly-toxic unsymmetric dimethylhydrazine (UDMH) – aka. “heptyl” fuel (C2H8N2) – and adopting ecologically safe propellants and launch practices.

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