French manufacturers of satellite equipment are beginning to lose business, as Russian satellite operator Gazprom has decided to evaluate its business relationships in light of changes in economic circumstances.

Satellite communications operator Gazprom Space Systems [GSS] is reevaluating its contracts with foreign suppliers of satellite equipment, in favor of handing contracts to Russian providers, reports Izvestia.

In January 2014 it was announced that French multinational Thales Alenia Space had won the contract to build the Yamal-601 telecommunications satellite for GSS, and as the prime contractor for the program, would be in charge of design, production, testing and delivery of the satellite, as well as providing the associated facilities on the ground necessary for satellite control and the handling of its data.

"We are very proud of our selection by Gazprom Space System for this major program," President and CEO of Thales Alenia Space Jean Loic Galle said in January of last year, announcing the deal. "It clearly confirms the excellent relations that our companies already established on the Yamal-200 and Yamal-400 programs, while bolstering our collaboration and paving the way for even more extensive partnership possibilities."

However, Izvestia reports, GSS is now looking to reformat the contract, worth more than $300 million, with a view to "attracting Russian enterprises for the manufacturing of the satellite's platform," a source in the company told the newspaper. According to the new plan, GSS intends to buy the necessary transmission equipment from Thales, which will then be installed on the Russian-produced satellite platform, as a result of which at least 40 percent of the value of the contract will go to the Russian provider.

A representative from the Khrunishev Space Center, which last week announced that it had signed a contract with GSS for the launch of the satellite in 2018 using the Proton-M launch vehicle, told Izvestia that the change of plans was "economically justified."

"It was planned that the geostationary satellite would be manufactured by French company Thales Alenia Space France, but in connection with the changing economic situation, i.e. the exchange rate, the order for the equipment's production has been handed over to Russian satellite provider ISS-Reshetnev," said spokesman Alexander Shmigov.

The Yamal 601 satellite is due to replace the Yamal 202 satellite; the latter satellite's coverage stretches across Eurasia and parts of the Middle East and North Africa, providing for the distribution of access to information resources centers, TV channels and a VSAT network to corporate customers and government structures.

GSS, in which parent company Gazprom owns a 79.80 percent stake, is also reportedly looking over its contract with EADS Astrium, part of the Airbus group, for the delivery of the Express AMU2 satellite, which the firm won the tender for in February of last year with an offer of 4.8 billion rubles ($78 million). ISS-Reshetnev, which took part in the original tender with an offer of 5.3 billion rubles ($86 million), is reportedly also a likely contender to receive the contract to manufacture the satellite, which is planned for launch in 2016 and will provide coverage of the European part of Russia and parts of Africa.

Source: Sputnik News