The Ukrainian Space Agency potentially lost about 80 percent of its revenue in 2014 after contracts cancellation by Russia, the International Monetary Fund (IMF) said in a report on Monday.

"Additional losses [of state companies] could stem from... contract cancellation by Russian clients in the space and military industry (potentially 80 percent of revenue for companies managed by the State Space Agency or UAH [Ukrainian Hryvnia] 2 billion per year)," the report stated.

In June 2015, Ukraine's President Petro Poroshenko halted all military sales to Russia. In February 2015, the Russian government announced the decision to cancel contracts for Ukraine's Zenit rockets used for satellite launches.

The relationship between Kiev and Moscow soured in 2014 following Crimea's reunification with Russia and beginning of a military conflict in Ukraine's eastern regions of Donetsk and Lugansk.

earlier report
Russian State Space Agencyto 'Phase Out' Importsof Ukrainian Rocket Parts

Deteriorating relations between Moscow and Kiev over the 2014 conflict in Ukraine's southeast have put a strain on their space cooperation. Russia has to rely on NASA mediation to procure rocket control systems from Ukraine.

"Our reliance on Ukrainian components is very limited, and I am positive that it will be phased out in the near future," the spokesperson told reporters.

Despite worsened relations, Russia and Ukraine launched a jointly-built Zenit carrier rocket in late 2015. It is produced by the Ukrainian Yuzhmash manufacturer with 70 percent of Russian-made components.

Source: Sputnik News