Russian Space Industry Nears Collapse Amid Financial Crisis, Sanctions

Russia's space industry is facing a severe crisis marked by financial collapse, loss of technological capabilities, and workforce demotivation amid ongoing war and international sanctions. The Soyuz-5 rocket test launch is still planned for December 2025, but broader challenges threaten Russia's space ambitions, including a $2.24 billion budget shortfall for Roscosmos since early 2022. RKK Energia, a flagship manufacturer responsible for key spacecraft and ISS support, revealed critical failures, rising debts, and operational inefficiencies, with its leadership warning the company may cease operations without urgent intervention. Sanctions and the war have cut Russia off from Western technologies and customers, effectively ending its competitiveness against space leaders like the U.S. and China and forcing a shift of resources from space exploration to military priorities. The private sector, exemplified by the bankruptcy of SR Space, also reflects the sector's deterioration. Collectively, these developments underscore the collapse of Russia's once-proud space program and its declining role in international space cooperation.