The beginning of the new century can be characterized by the gradual growing commercialization of space activity. According to Space Foundation in 2005 profits from private and governmental space projects in the world were $180 billion. At present commercial space communication market has the time of rapid development. According to the Teal Group consulting company the forecast of the geostationary communication satellites market development only for a period of 2006-2015 foresees 176 launches of commercial communication satellites with the total value of $28.3 billion.

Despite quite a large trade turnover the space services market is nowadays undergoes the formation period. The statement is particularly true for the regions of economic growth. The long-term positions on world political and economic scene shall be the prize of the struggle on the market.

This market though being attractive has its own distinctive features. The most important one is that the unique material and technical basis for the development and production of space technical equipment is necessary for space services provision. The development of all necessary bases for production and operation of such equipment (including scientific and project establishments and industrial complexes) will need a great deal of expenditures. Therefore it is economically sound to use already present establishments and enterprises including those under conversion or joint-stockicizing processes.

This assertion can particularly be applied to enterprises and organizations in Russia and Ukraine. The ratio between the price and the quality of space equipment and services allows to characterize services of Russian enterprises and the space equipment they produce as the most advantageous in the world without entailing loss of reliability.

Below is presented an analysis of the Russian space legislation and as to familiarize a possible investor and the interested with the main stages that an organization is to go through to carry out space activities in the Russian Federation.

License obtainment to carry on space activities in the Russian Federation

The Federal Space Agency (Roskosmos) of Russia is the body issuing a license for carrying on space activities. According to the federal Law On Space Activities of August 08, 2001 the term Space Activities stipulates “activities related to the immediate carrying out of exploration and use of space including the Moon and other celestial objects”. The aforementioned Law prescribes that these activities subject to licensing in accordance with the Russian legislation, whereas space technical equipment including space vehicles subject to certification. Space objects subject to registration by Roscosmos as well.

Any legal entity has the right to obtain a license to carry on space activities if it is duly incorporated in Russia. The Law has no restrictions neither for a representative office of foreign legal entities nor for a Russian legal entity which capital is formed by foreign investments mainly or completely. However the Law foresees many requirements to the applicants aspiring after the license to carry on space activities. The Order on licensing of space activities approved by the Government of the Russian Federation on June 30, 2006 contains the complete list of such requirements. This Order divides the space activity into groups of services. Each group has its own list of necessary requirements and conditions for licensing.

However it is possible to stress general requirements true for all groups of activities:
- Ownership or any other legal title to use real estate, material resources, normative and engineering documentation;
- Availability of qualified specialists, certified in appropriate cases for fulfillment of necessary work;
- Access to carrying out of work related to the use of State secret information.

Generally duration of license is five years. The information on all organizations that have a license to carry on space activities one can find on the official website of Roskosmos.

Licensing of enterprises’ activities related to the use of State secret data

The Order on licensing of space activities of enterprises, establishments and organizations on carrying on activities related to the use of State secret data. Development of information protection means and performance of measures and (or) services for State secret data protection regulates rules of access obtaining to the carrying on activities related to the use of State secret data. The Order was approved by the Decree of the Government of the Russian Federation № 333 of April 15, 1995. The authorized body to license issuance granting to enterprises the permission to carry out activities related to the use of State secret data is the Federal Security Service and its local agencies.
To acquire a license the licensing body is to receive the following documents form the applicant:
• The application for license issuance (the name of a company, its residence address, the settlement account, the name of the licensed activity to be carried out, the license period are to be included in the application);
• Copies of constituent instruments (with the presentation of the originals if the coliers are not notarized);
• A copy of a document confirming the registration of a applicant-company (an extract from the State registrar of legal entities);
• A copy of propriety documents on the property necessary for carrying out the applied activities (or documents confirming lease contract);
• Registration certificate in tax bodies;
• The state due payment confirmation;

It is necessary to undertake an examination of enterprises and to certify their management responsible for State secret data protection for license acquisition. It is also necessary to meet the following requirements:
• Compliance with legal requirements governing the State secret data protection while carrying out activities related to the use of such data;
• The enterprise must have a State secret data protection body and the duly qualified personnel for such protection;
• Availability of certified data protection facilities confirming their consistency with the data protection requirements.
The license period depends on the activity but is nothing less than three and longer than five years.

Space equipment certification

The Federal Law on Technical Regulation of December 27, 2002 as well as the Order on the certification procedure in Russia (approved by the Decree of the State Standardization Committee № 26 of May 10, 2000. The space equipment certification comprises the space objects certification, space infrastructure facilities and may also include the equipment for development and use of space technical equipment. The agencies accredited by Roskosmos certify this equipment. If there several such organizations the applicant – company may chose any.
The legal basis of the certification procedure form standards, orders and other documents containing the requirements to the quality systems. The ISO 9000 standards, as well as other international, regional and national acts can serve as the basis.

The certification procedure consists of several stages:
• The quality system preliminary estimate;
• The organization and quality system checkout and estimate;
• The certified quality system inspection checkout.

The quality system preliminary estimate is carried out based on the documents presented by the applicant – company to the certifying agency (e.g. standards of the product inspection, test inspection, paper work standards, etc.).
The second stage of the certification procedure consists in the quality system checkout plan drafting approved by the management of the company being inspected, in the responsibilities breakdown and the preparation of working documentation.

The quality system checkout consists of:
• A preliminary conference where the members of the expert committee are presented and the aims, terms and stages of the checkout are settled;
• The inspection of the organization that consists of the actual data collection by personnel inquiry, analysis of documentation, production processes, of the arrangements destined to secure the product quality;
• Drafting of the inspection act stating the revealed defects of the quality system at the company and that should include the conclusion regarding the consistency of the quality system with the requirements of the legislation;
• Closing conference where the results of the inspection are presented.

The analysis of design and technical documentation, legal acts (state standards, technical requirements, industrial standards) methodical documentation (test methods, specifications), analytical data (test transactions and reports, checkout drafts, working journals), technical equipment, checkout facilities and production and processes characteristics measurement procedures is necessary during the inspection and the estimation of the quality system carried out in respect of the production and services subject to the obligatory certification. These arrangements allow to checkout the ability of the company to keep up with the requirements for the production and services.
After the certification procedure there shall be issue a certificate for each sample of space technical equipment. The certificate validity period is three years. Annually after the certification procedure an authorized certifying agency the quality management system inspection is carried out with regard to the consistency of this system with the ISO 9000 requirements (state standard ISO P 9001).

2007-2009 DK Eclectic