Russian space industry funding will be cut by 10 percent in 2015, said Grigory Khvorostyanov, director of the United Rocket and Space Corporation's Reform Coordination Center.
"The government has demanded cutting the overall budget of space programs for 2015 by 10 percent as part of a budget sequestration measure," Khvorostyanov said at a joint meeting of the Experts Council at the Military-Industrial Commission's senior officials board and the Russian Chamber of Commerce's committee for facilitating Russia's economic modernization and technological development.
"Such a reduction will have a serious negative impact on space related companies' economic positions," he said.
A smaller budget will cause the companies' debts to grow, "which can put the industrial foundations of the space industry in jeopardy," he said.
Khvorostyanov also said that in the current setting the decision to merge the United Rocket and Space Corporation and the federal space agency Roscosmos was "a political decision."
It was unacceptable amid a worsening economic situation to have "two organizational structures competing for managerial levers," he said.
The result was that some of the decisions were behind schedule, he said, adding, "No decision is worse than a wrong decision."
The formation of a space state corporation is "an emergency measure calculated to save time and resources," he said.
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