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Ukraine Introduction EU 4+ SPACE IN CENTRAL AND EASTERN EUROPE OPPORTUNITIES AND CHALLENGES FOR THE EUROPEAN SPACE ENDEAVOUR Report 5, September 2007 Charlotte Mathieu, ESPI European Space Policy Institute Report 5, September 2007 1 Short Title: ESPI Report 5, September 2007 Editor, Publisher: ESPI European Space Policy Institute A-1030 Vienna, Schwarzenbergplatz 6 Austria http://www.espi.or.at Tel.: +43 1 718 11 18 - 0 Fax - 99 Copyright: ESPI, September 2007 This report was funded, in part, through a contract with the EUROPEAN SPACE AGENCY (ESA). Rights reserved - No part of this report may be reproduced or transmitted in any form or for any purpose without permission from ESPI. Citations and extracts to be published by other means are subject to mentioning “source: ESPI Report 5, September 2007. All rights reserved” and sample transmission to ESPI before publishing. Price: 11,00 EUR Printed by ESA/ESTEC Compilation, Layout and Design: M. A. Jakob/ESPI and Panthera.cc Report 5, September 2007 2 EU 4+ Executive Summary ....................................................................................... 5 Introduction…………………………………………………………………………………………7 Part I - The New EU Member States Introduction................................................................................................... 9 1. What is really at stake for Europe? ....................................................... 10 1.1. The European space community could benefit from a further cooperation with the ECS ................................................................. 10 1.2. However, their economic weight remains small in the European landscape and they still suffer from organisatorial and funding issues .... 11 1.2.1. Economic weight of the ECS in Europe ........................................... 11 1.2.2. Reality of their impact on competition ............................................ 11 1.2.3. Foreign policy issues ................................................................... 12 1.2.4. Internal challenges ..................................................................... 12 1.3. But the ECS have gained significant political weight through their EU membership ........................................................... 14 2. The ECS and Space ............................................................................... 15 2.1. The role of space in the ECS: Space as a tool for development .............. 15 2.2. The role of the ECS in the European space activities ............................ 15 2.3. The vicious circles of the development of the ECS’ space activities ......... 16 2.4. The development of space-based applications in the NMS ..................... 16 2.5. The need for an external impetus ..................................................... 17 2.6. The timing is crucial ........................................................................ 19 3. The question of ESA membership ......................................................... 21 3.1. The relationships between ESA and the ECS ....................................... 21 3.1.1. Cooperation Agreements and PRODEX ........................................... 21 3.1.2. The Plan for European Cooperating States (PECS) ........................... 21 3.1.3. The PECS experience and the options for the way forward ................ 22 3.2. Benefits and costs of the ESA Membership ......................................... 23 3.3. Challenges to the ESA membership ................................................... 24 3.3.1. For the ECS ............................................................................... 24 3.3.2. For ESA and its Member States ..................................................... 25 Conclusions and Recommendations ............................................................. 26 Appendices Part I Appendix A Fact Sheet on the Czech Republic………………………………………………… 28 Fact Sheet on Hungary ………………………………………………………………… 30 Fact Sheet on Poland………………………………………………………………………32 Fact Sheet on Romania……………………………………………………………………34 Appendix B Space Activities and their Environment in the… Czech Republic…………………………………………………………………………………37 Hungary……………………………………………………………………………………………49 Poland……………………………………………………………………………………………… 61 Romania……………………………………………………………………………………………72 European Space Policy Institute Report 5, September 2007 3 Part II – Ukraine Introduction .............................................................................................. 82 1. Ukraine today – The political and economic context ............................. 83 1.1. The Ukrainian economy ................................................................... 83 1.2. The Ukrainian political situation ........................................................ 84 1.3. Ukraine and the West...................................................................... 85 2. Strengths and weaknesses of the Ukrainian space sector .................... 86 2.1. Ukraine’s space potential inherited from the Soviet era ........................ 86 2.1.1. A tremendous expertise gained during the Soviet times ................ 86 2.1.2. And important space capabilities in heritage ................................ 86 2.1.3. However Ukraine was left in a difficult situation ........................... 86 2.2. The transition towards a space nation................................................ 86 2.2.1. Space in the independent Ukraine ............................................. 87 2.2.2. The conversion from military to civil-oriented space activities ........ 87 2.2.3. The transition from mass production to low-volume production ...... 87 2.2.4. Ukraine managed to remain a major space nation ........................ 87 2.3. Ukraine’s competitive advantage ...................................................... 88 2.3.1. The low production costs in Ukraine ........................................... 88 2.3.2. But for how long? .................................................................... 88 2.4. Political and institutional issues ........................................................ 89 2.4.1. Political issues ........................................................................ 89 2.4.2. The role of the National Space Agency ....................................... 90 2.4.3. Limits to its independence ........................................................ 90 2.5. Challenges to the development of space activities ............................... 90 2.5.1. Adaptation to market principles ................................................. 90 2.5.2. Insufficient intellectual property protection ................................. 90 2.5.3. Adaptation to Western technical standards .................................. 90 2.5.4. Limited benefits to citizens ....................................................... 90 2.5.5. The interdependence with Russia ............................................... 91 3. The future of space activities in Ukraine ............................................... 92 3.1. The main challenges ....................................................................... 92 3.1.1. Funding ................................................................................. 92 3.1.2. Human resources .................................................................... 92 3.1.3. The need for new projects ........................................................ 92 3.2. Options ......................................................................................... 92 3.2.1. An independent Ukrainian space industry ................................... 933 3.2.2. Development of large-scale cooperation with new partners ........... 93 3.2.3. Continuing the cooperation with Russia ...................................... 93 4. Cooperation with Europe - Opportunities and challenges ..................... 94 4.1. Rationales for cooperation ............................................................... 94 4.2. Challenges to Europe-Ukraine cooperation ......................................... 94 4.2.1. Different definitions of cooperation ............................................ 94 4.2.2. Lack of transparency and long-term vision .................................. 94 4.2.3. Will Ukraine’s competitive advantage last? .................................. 94 4.2.4. Language problems ................................................................. 95 4.2.5. The issue of missile proliferation ................................................ 95 4.3. Potential opportunities and mechanisms for cooperation....................... 95 4.3.1. Cooperation supported by the European Union ............................ 95 4.3.2. Participation in EU programmes................................................. 95 4.3.3. Participation in ESA programmes ............................................... 95 4.3.4. Participation in the joint EU/ESA programmes ............................. 96 Conclusions – Recommendations ................................................................. 97 Appendices Part II Appendix A Fact Sheet on Ukraine…………………………………………………………………… 99 Appendix B Space Activities and their Environment in Ukraine………………………102 Report 5, September 2007 4 EU 4+ Executive Summary The successive enlargements of the European specificities, reflected in their space Union (EU) have created new opportunities activities. A common approach coordinated and challenges. The Union’s expansion between the European Commission (EC) and towards Central and Eastern Europe ESA towards these four countries would be could be particularly beneficial to Europe simpler but
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