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Denis Kachkin, Managing Partner and Head of the Infrastructure and PPP Practice at Kachkin & Partners, comments on the application of PPP in space.

In July 2024, important legislative changes[1] were adopted in Russia, which opened up the possibility of using public-private partnership (PPP) mechanisms, including concession agreements, in the space industry. The initiative has become a significant stage in the formation of a legal environment capable of attracting private investment in the high-tech sector.

In particular, the list of objects eligible for PPP and concession agreements has been expanded to include elements of space infrastructure, as well as technologically related objects, including satellite systems, ground control systems, and data processing systems. This opens up broad opportunities for launching a wide range of project initiatives leveraging private investment and expertise—projects that previously could only be implemented through public funding.

Key areas of development

One of the priority goals of the legislative changes was to create conditions for the implementation of projects in the field of creating domestic satellite groupings, primarily low-orbit ones, as well as the development of Russian satellite communications and navigation systems. Special attention is currently being paid to tasks related to monitoring the natural environment, developing infrastructure in the Arctic, and increasing Russia’s technological sovereignty in the field of data transmission.

A significant block of changes affected the legislation on remote sensing of the Earth. In particular, the concepts of the RS data and the composition of the RS data to be included in the federal RS data fund were clarified[2]. Data obtained in the interests of the Ministry of Defense of the Russian Federation was naturally excluded from being included in the federal data fund. A number of changes were also adopted aimed at shaping the RS data market in Russia.

First projects and business interest

The first steps towards the implementation of space PPP projects are already being taken. So, in May 2025, the Rassvet project, a multi—satellite constellation initiated by Bureau 1440, was presented at the strategic session under the Government of the Russian Federation. The project is focused on providing high-speed data transmission and is considered as a Russian alternative to the Starlink system being developed by SpaceX. Sitronics, Gazprom-KS, Barl+MT Lab, Steelspace and other technology companies are also developing their own satellite solutions in the field of the RS data. Leading financial institutions, in particular, Sberbank, are also involved in the structuring of relevant projects. This corresponds to a global trend: according to data for 2024, more than 90% of the RS data satellites launched in leading countries (including the United States and China) were created with the participation of private capital.

Promising areas for PPP in the space sector

The potential for using PPP mechanisms in space extends beyond satellite constellations.

Among the promising areas, we would mention:

1. Launch services—development of non-state launch. In the international arena, such projects are implemented by private companies (for example, SpaceX, RocketLab). Russia is already developing similar solutions that can be implemented with the support of PPPtools.
2. Space tourismis an emerging market where companies are already operating abroad. Virgin Galactic, Blue Origin, SpaceX. It is possible to implement pilot suborbital program sin Russia, subject to government participation and systemic support from private It is alsoworthnoting the sign ificant potential for new tourist destinations,such as trips to Baikonuror the Vostochny cosmodrome.
3. The space industry and R&D prospects are related to the creation of automated production stations, the research of new materials and dosage forms in microgravity, as well as the development of technologies for the primary processing of resources extracted in space.

Recommendations for improving legislation for the development of PPP in the space industry

At the same time, there are a number of legal restrictions that limit the large-scale implementation of PPPs in the space industry.

It’s important to clearly define the criteria for classifying spacecraft as state-owned or non-state assets. Currently, this classification depends solely on the funding source: federal budget funds determine state status, while private investments qualify an object as non-state. However, legislation does not specify the classification of satellites built under concessions or public-private partnerships. This raises the possibility that satellites built with public participation (even if privately owned) will be classified as state-owned, and vice versa. It seems more logical and consistent to classify such assets based on their ownership.

In order to stimulate the development of a commercial market for products and services based on remote sensing data, it is also recommended to create a transparent procedure for allocating rights to such data obtained from government satellites created under concession agreements, allowing the use and sale of the processed information by a private commercial organization.

At the same time, the raw information should be sent to the federal RS data fund, as stipulated in the legislation today. It is also worth considering the need to support research and development conducted by project partners. Legislation should provide for mechanisms to cover the costs of research and development (R&D), ensuring the implementation of the project. Such provisions will increase investor interest and reduce the risks of non-repayment of invested funds.

The material was published in the Analytical Digest of the Association of Infrastructure Investors and Lenders on June 23, 2025.

[1] Federal Law No. 196-FZ dated 07/22/2024 «On Amendments to Certain Legislative Acts of the Russian Federation».

[2] Federal Law No. 89-FZ dated 04/22/2024 «On Amendments to Certain Legislative Acts of the Russian Federation».