The ILS/Khrunichev partnership for commercial launch services represents the most successful post-Cold War economic cooperation between the United States and Russia outside of oil and gas exploration.
This partnership has been instrumental in growing strong businesses both in Russia and throughout the U.S., creating jobs and advancing economic cooperation between these two nations.
Since the inception of commercial Proton launch services in 1992, the partnership has launched 81 commercial Proton rockets for satellite operators around the globe. The Proton launch vehicle has become one of the leading launch vehicles in the market for commercial launch services. The launches have enabled the growth and development of the some of the largest media and information companies in the world, such as DIRECTV, EchoStar/Dish TV and Sirius XM Radio, Intelsat, GE Americom and Skynet.
Over the last six years alone, the partners have signed contracts for approximately 57 commercial Proton launches, valued at approximately $5 billion. This represents approximately 50 percent of the contracts signed globally for commercial launches of satellites weighing 4.5 metric tons or more. From 2005 to 2011, gross revenues for commercial Proton launches increased from $200M to more than $700M a year.
Key to the successful partnership has been the economic benefits it has yielded for both Russia and America.
- THOUSANDS OF JOBS CREATED. Khrunichev has over 40,000 direct employees working across all branches, and thousands more contractors, which combined amounts to roughly 100,000 jobs in Russia. In the United States, the company ILS employs approximately 65 professional U.S. citizens engaged in sales, marketing, mission management, launch operations, legal, licensing, and technical translation services, as well as 41 U.S. based sub-contractors.
- A ROBUST, GROWING INDUSTRY LEADER. Revenue from commercial launches reached nearly $600 million in 2009 compared with $198 million in 2005 (during the period Khrunichev became the principal shareholder of ILS). The value of all commercial contracts signed to date by the partnership equal $7.5 billion. This represents 50 percent of Khrunichev’s business over the past decade. In fact, the partnership is responsible for 50 percent of Khrunichev’s revenue since 2007.
- SATELLITE LAUNCH LEADER. The partnership accounts for launching 30 percent of the global commercial space market; the only Russian company with such strong market share.
- AN IMPORTANT ECONOMIC CONTRIBUTOR TO THE US ECONOMY. ILS’s direct contribution to the U.S. economy is approximately $35-40 million per year.
- A KEY ASSET IN THE RUSSIAN AEROSPACE MARKET. The Khrunichev Space Center is a premier player of both Russia’s and the international space market in the field of development and introduction into practice of new space technology solutions.
- AN IMPORTANT ASSET FOR AMERICAN COMPANIES. 70 percent of launches have been of US-manufactured satellites and 42 percent of launches have been for US-based operators, including: Intelsat, Panamsat, Loral Skynet, GE Americom/SES Americom, EchoStar, DirecTV, LightSquared, Viasat. Competitively priced Proton launches have enabled the growth and development of a host of U.S. companies operating in space, such as DIRECTV, EchoStar/Dish TV and Sirius XM Radio, Intelsat, GE Americom and Skynet. These companies generated billions of dollars of revenue for the U.S. and offered countless jobs to American workers.
