Vnesheconombank and State Federal Unitary Enterprise Space Communications (SESC) Sign Credit Agreement on the Construction of the Express-AM7 Satellite

State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and Federal State Unitary Enterprise Space Communications (Kosmicheskaya Svyaz) signed a credit agreement on funding a project on the construction of the Express-AM7 satellite in the amount of 125.6 million euros.

On behalf of SESC the agreement was signed by Director General Yury Prokhorov and on behalf of Vnesheconombank by Board Member, Vnesheconombank Deputy Chairman Anatoly Ballo.

The project aims to create, launch and operate the Expres-AM7 satellite to replenish and develop the Russian orbital group of civil communications and broadcast satellites as well as create conditions for intensive development of new information and communications technologies including providing consumers with a package of multi services and creating communications networks on the basis of VSAT technology. The project’s total implementation period is 18 years, 3 years of which are scheduled for constructing and launching the satellite and no less than 15 years - for its operation. The project’s total value is 8.3 billion rubles.

The Express-AM’s construction as well as manufacturing of a launch vehicle and the satellite orbital launching are carried out under the Federal Space Program of Russia for 2006-2015. The new satellite’s capabilities will be also used to implement the Federal Target Program “Development of Television and Radio Broadcasting in the Russian Federation for 2009-2015. The Express-AM7 satellite is scheduled to be launched into orbit in 2014. A planned orbital position in which satellite will operate is 40 degrees east longitude.

The heavy class Express-AM7 satellite is being created by European Concern EADS Astrium on the basis of Eurostar E3000 platform on the order of SESC. The Express-AM7 payload will include 62 active transponders. Due to its improved performance the new satellite will ensure top-quality and reliable coverage of the Russian territory (excluding the Far East) and CIS countries in various frequency ranges. This satellite’s capabilities are also planned to be used to provide services on digital broadcasting, multimedia and broadband access to the Internet.

“The agreement signed is a result of strenuous efforts made by our organizations in order to fulfill instructions by the Governmental Commission on Transport and Communications” said SESC Director General Yury Prokhorov. “We are sure that Vnesheconombank’s participation in funding the Program aimed at upgrading the satellite group of SESC would help to successfully implement government and socially meaningful infrastructure projects with the use of new Russian communications and broadcast satellites’ capabilities.

Commenting on the agreement, Board Member, Vnesheconombank Deputy Chairman Anatoly Ballo said, “ Development of satellite systems and using results of space activity in the economy bring a new quality in our life and make space communications and telecommunications services more accessible for consumers, expand borders of information space for the society, contribute to introducing scientific and technical advances, create new jobs and ensure employment for highly qualified specialists thus forming the basis for modernization and technological development of our country”.

The Russian Satellite Communications Company (RSCC), a Federal State-Owned Unitary Enterprise, is Russia’s national satellite communications operator. Established in 1967, RSCC operates satellites that support global coverage, and its orbit/frequency assets make it one of the ten largest satellite operators in the world.  RSCC owns the largest satellite fleet in Russia. Via its satellites positioned from 14°W through 140°E, RSCC satellites operate over a coverage zone including all of Russia, CIS, Europe, Middle East, Africa, Asia-Pacific region, North and South America and Australia.

As a national operator of satellite communications in Russia, SESC addresses important tasks of providing mobile presidential and governmental communications, broadcasting of federal television and radio channels to the Russian territory and most countries of the world. The enterprise is actively participating in implementing high-priority national projects cooperating closely with Russian government authorities in developing information, telecommunications and broadcasting systems. SECS provides a full range of communications and broadcasting services with the use of its own technical facilities and satellite groups comprised of advanced satellites of series Express-AM, Express-MD, Express-A, Bonum-1  as well as a part of the French W4 capacity. The enterprise is subordinated to the Federal Communications Agency (Rossvyaz).

State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” was established in 2007 under the Federal Law “On the Bank for Development” by means of reorganization of the Bank for Foreign Economic Affairs of the USSR. Vnesheconombank is a key instrument for implementing the state economic policy that is primarily focused on removing infrastructure restrictions on economic growth, enhancing natural resources utilization efficiency, developing high-tech industries, unleashing innovative and industrial potential of small- and medium-sized enterprises. Under Vnesheconombank’s Memorandum on Financial Policies rocket and space complex and information and communications systems are among Vnesheconombank’s investment activity priorities for 2007-2013.

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