Russia’s rocket ads plan moves forward
▼ Summary
– The Russian economy has likely contracted over the last five years, with high inflation and $450 billion in losses from sanctions since February 2022.
– Sweden’s foreign minister stated that Russia’s economy is currently smaller than that of Texas.
– Defense spending has reached a post-Soviet record of about 7 percent of government spending due to the war in Ukraine.
– Russia’s space program is now regularly selling advertising space on its rockets for banks and restaurants to generate revenue.
– President Putin approved changes to federal laws last fall to officially allow advertising on spacecraft, building on past one-off deals like Pepsi and Pizza Hut.
Determining the actual health of the Russian economy has always been a challenge, given the country’s sparse financial disclosures and the frequent unreliability of its official data. Still, the available indicators suggest things are far from rosy.
This week, Sweden’s foreign minister, Maria Malmer Stenergard, offered a stark assessment: the Russian economy has likely shrunk over the past five years amid the ongoing war in Ukraine. Inflation remains elevated, and international sanctions have cost Moscow roughly $450 billion since the conflict began in February 2022. As Stenergard pointed out, Russia’s entire economy is now smaller than that of the U. S. state of Texas.
By nearly every metric, the economy is in rough shape. Adding to the strain, the war continues to consume a massive share of the country’s financial resources. Defense spending has climbed to a post-Soviet record, now accounting for about 7 percent of government expenditure.
Given these pressures, it may come as little surprise that Russia’s struggling space program is looking for fresh revenue streams. Since January 1, Russian rockets have been regularly plastered with advertisements for banks, restaurants, and other commercial enterprises.
Advertising in space is not entirely new for Russia. Thirty years ago, Pepsi paid roughly $5 million for a cosmonaut to film a giant Pepsi can replica outside the Mir space station. In 2000, Pizza Hut spent to have its logo painted on a Proton launch vehicle carrying a spacecraft to the International Space Station.
But those were largely one-off stunts. Now, Moscow has officially integrated space advertising into its national space policy. Last fall, President Vladimir Putin approved amendments to federal laws governing both advertising and space activities, formally permitting the placement of ads on spacecraft.
(Source: Ars Technica)
