Russia's space corporation Roscosmos imposed sanctions against Progress Rocket and Space Center, the developer and manufacturer of Soyuz-2 space rockets, as well as civil and military spacecraft.
Representatives of the state corporation said that, in accordance with the requirements of the Russian legislation, "it is obliged to apply sanctions for improper performance of contractual obligations."
Roscosmos did not name the specific reason for the imposition of sanctions against Russia's leading company in the rocket and space industry, which provided for 14 out of 16 Russian space launches in 2020. Roscosmos seeks 4.7 billion rubles from Progress.
In December, the US Department of Commerce published the list of Russian and Chinese companies that were sanctioned for cooperation with the military, in particular, Progress Rocket and Space Center.
In August, Progress CEO Dmitry Baranov told RIA Novosti that the launch of two Resource-P civil satellites into orbit was postponed due to the lack of components supplied by external contractors. The same month, analyst Bart Hendricks, in a publication for The Space Review, wrote about the development of military satellites by Samara-based Progress and ensuing difficulties.
Currently, Progress conducts mass personnel reductions, while Roscosmos withdraws money from this company. In July 2018, Roscosmos CEO Dmitry Rogozin announced the merger of the profitable Rocket and Space Centre Progress and the unprofitable Khrunichev Center, the manufacturer of Proton-M and Angara rockets, into the production association.