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Russian FinMin finds extra cash for scandal-plagued Vostochny cosmodrome

Published 06/17/2015, 11:24 AM
Updated 06/17/2015, 11:34 AM
© Reuters.  Russian FinMin finds extra cash for scandal-plagued Vostochny cosmodrome

MOSCOW (Reuters) - The construction of Russia's Vostochny cosmodrome, taken under President Vladimir Putin's personal control after strikes and a corruption scandal, is being allocated an additional 50 percent funding this year to speed its completion.

Building a launchpad in Russia's Far East, ending reliance on the Baikonur cosmodrome in Kazakhstan, is central to Putin's effort to reform a once-pioneering space industry hobbled by years of budget cuts and a brain drain in the 1990s.

Finance Minister Anton Siluanov presenting 2015 budget amendments in the lower house of parliament on Wednesday said the additional allocation of 20 billion rubles ($370 million) would not increase the budget deficit this year.

Vostochny is intended ultimately for missions to the Moon and Mars and a first rocket launch was scheduled for this year.

But the project has been beset by problems. Construction workers went on strike earlier this year saying they had not been paid for months, while news agencies cited security service sources as saying as much as 50 million rubles had been embezzled from the project.

Putin said he would take control of Vostochny's construction in March.

"Yes there are certain problems with the realization of the project and the construction of the cosmodrome," Siluanov said. "These problems will be solved, but the money should be provided completely."

The government had earlier allocated 40 billion rubles this year to complete the Vostochny project. The additional 20 billion was approved at a first reading. It must pass two further readings and be signed into law by Putin.

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