The Cabinet of Ministers of Ukraine has approved the Concept of the national target scientific and technical space program of Ukraine for 2021-2025. The relevant decision was made at the Wednesday government meeting.
“Finally, the situation in the industry will get off the ground, because the last few years it has actually been in a frozen state, not understanding either its priorities or the conditions for development. The next important and urgent step is the adoption of the National target scientific and technical space programs of Ukraine for 2021-2025,” Deputy Prime Minister, Minister for Strategic Industries of Ukraine Oleh Urusky said.
He said this concept was developed by the Ministry of Strategic Industry along with the State Space Agency. Its purpose is to expand the use of space potential, increase influence on the development of society, ensure the implementation of the interests of the government in the defense and national security sectors. The concept also defines the key problems of scientific and technological development of space activities, ways of solving them and expected results.
According to the explanatory note to the draft concept, the estimated amount of funding for the implementation of the program is approximately UAH 30 billion, including about UAH 15 billion from the national budget.
Minister of Finance Serhiy Marchenko, during the adoption of this document, made a remark that the implementation of this program should be carried out within the budget assignments.
It is expected that the implementation of the program will lead to the following results: access to the most modern information technologies (Earth remote sensing systems, coordinate-time and navigation systems) will be extended for the citizens of Ukraine; increased security will be ensured (through the use of space information to ensure national security in the military, political, economic, social, environmental, scientific and technical, information spheres); workers in the space industry will be provided with stable orders, prestigious and highly paid jobs; workers in agriculture, forestry in other sectors of the economy will have the opportunity to rational land use using space images; young people will have the opportunity to take the first steps in science and technology, to establish creative ties with peers from abroad in the process of implementing scientific and educational space projects.
The volume of state financing of the rocket and space industry of Ukraine in 2019 should amount to UAH 2.13 billion, which is 14% less compared to 2018. These parameters are stipulated in the country’s main financial law for 2019, which has been posted on the Verkhovna Rada’s website. State financing for the space industry from the general fund of the national budget of 2019 will amount to UAH 2.12 billion (99.5% of the budget).
In the total amount of funding for the industry through the general fund, UAH 1.47 billion (69% of the industry budget) should be used for servicing debt obligations on the loan raised under state guarantees for the implementation of the project “Creating the National Satellite Communications System.” In 2018, some UAH 1.55 billion (62.5%) was foreseen for this purpose.
Some UAH 78.5 million is foreseen for carrying out work on state targeted programs and government orders in the space industry in 2019, which is 9.8% less than in 2018, while UAH 344.8 million will be spent on management and testing space vehicles, or 14% less compared to 2018.
Enterprises comprising Ukraine’s rocket and space industry boosted production by 12.7% in the first six months of 2018 compared to the same period last year, to UAH 1.58 billion.
Sales of the enterprises in the first six months of 2018 increased by 12.3%, to UAH 1.57 billion, while the total volume of gross output amounted to UAH 2.11 billion, the press service of the State Space Agency of Ukraine (SSAU) has said.
The agency said exports to the EU, United States and other countries amounted to UAH 877.4 million, or 90.1% of all exports.
During the period, five Ukrainian space enterprises posted profits: open join-stock company Kharton had UAH 2.99 million in net profit, state-owned Yuzhny machine-building plant named after Oleksandr Makarov (Yuzhmash, or Pivdenmash) reported about UAH 130,000 in net profit, while the net profit of production association Kyivprylad was UAH 20,000. State-owned Scientific and Research Technological Institute of Instrument Making and state-run Ukrkosmos were also in the black, the press service said.
The average number of full-time employees of the industry as of the end of the second quarter of 2018 (July 1, 2018) was 16,745 people, 0.3% less than in the first quarter.
“The main reason for the reduction in the number of staff remains relatively low wages due to the underloaded capacity of enterprises and the transfer of some of them for a shorter workweek, or other forms of optimization of labor costs,” the report says. The nominal average monthly salary in the industry grew by 8.1% compared to the beginning of the year and amounted to UAH 8,223.1 in the first half of the year, the SSAU said.
As reported, at the present time there are 26 enterprises and organizations of the rocket and space industry in the management of the SSAU.
In 2018, the state budget for the rocket and space industry envisages UAH 2.03 billion in the state budget, which is 30% less than in 2017. Of the total financing of the sector through the general fund, some UAH 1.55 billion (79%) should be spent on servicing of debt obligations on earlier borrowed loans for the implementation of international projects, in particular, for servicing a loan raised under the project “Creation of the National Satellite Communication System.” In 2017, some 61.5% of the industry budget (UAH 1.5 billion) was allocated from the national budget for these purposes.
For the first time over the years, there is no provision for financing a national targeted research and engineering space program in the 2018 state budget.
Also, the country’s budget for 2018 envisaged no funding for defense state programs and projects implemented by space industry enterprises under the SSAU. The budget of the industry in 2017 allocated UAH 941.2 million (32.3% of the total sum) under such programs.
Enterprises of the space industry of Ukraine in January-March increased production in comparison with the same period in 2017 by 12.7%, to UAH 884.4 million, the press service of the State Space Agency of Ukraine has reported. The volume of sales in the first quarter increased by 12.3%, to UAH 892 million. The total volume of gross output for the reporting period of 2018 exceeded UAH 1.462 billion, comparative figures for the last year’s reporting period are not available in the report.
According to the State Space Agency of Ukraine, the volume of the rocket and space industry’s gross output in the first quarter of 2018 rose by 21.2% compared to the same period in 2017, to UAH 52.2 million. Work under the state order was conducted by two enterprises: Pavlohrad Chemical Plant and Ukrkosmos.
The share of exports in the total volume of sales for the reporting period was 32%, while in the total volume of exports some 84.7% to the EU, the United States and other countries.
According to the data provided, seven enterprises posted profit in the first quarter. In particular the net profit of state enterprise Pavlohrad Chemical Plant amounted to UAH 33.66 million, that of PJSC Hartron some UAH 630,000, state enterprise Pivdenmash some UAH 100,000, Dniprovsky Design Institute some UAH 100,000, and Scientific and Research Technological Institute of Instrument Making some UAH 100,000.
Enterprises of the Ukrainian space industry exported about 50% of manufactured products and services in 2017, the press service of the State Space Agency of Ukraine (SSAU) has reported. According to a report posted on the website of the agency, in the total volume of sales of the industry’s goods and services worth UAH 4.7 billion, the share of exports amounted to 49.3%, or 8.1% more than in 2016.
According to the press service, the share of exports to the U.S., EU countries and other countries amounted to 92.9%, or UAH 2.11 billion, in total exports.
Export growth for the reporting period was demonstrated by export-oriented enterprises, in particular, Arsenal Special Device Production State Enterprise – 57.4%, Pavlohrad Chemical Plant – 139.7%, Pivdenne Design Bureau – 19.6%, and PJSC Hartron – 63%.
According to the agency, enterprises operating in the space industry increased production by 26.3% in 2017 year-over-year, to UAH 4.6 billion. Gross production grew by 22% and exceeded UAH 5.49 billion. The growth of sales at the end of the year amounted to 24%.
SSAU currently manages 26 enterprises and organizations of the space industry. The state budget for 2017 envisages UAH 2.91 billion for financing the space industry, or 14.2% less than in 2016. In the total amount of financing, 61.5% of the funds from the state budget’s general fund are envisaged for the fulfillment of debt obligations on previously attracted loans for the implementation of international industry projects.
