Strategy Page looks at the knock-on effects of the Russian government banning the export of rocket engines to the United States:
The U.S. government is being forced to use satellite launchers developed without government financing because the usual methods of obtaining these launchers is falling apart and currently is unable to supply enough rockets to get all American military satellites into orbit. The immediate cause of this problem is the recent (since earlier this year) Russian aggression against Ukraine. The U.S. responded to this aggression by placing sanctions on some Russian officials and firms. Russia responded to that by halting RD-180 shipments to the United States. That’s breach of contract and it will do enormous damage to Russian exports in the future because now many countries and firms realize that a contract with a Russian firm can be cancelled by the Russian government for any reason. This was always seen as a risk when doing business with Russia and many Western firms declined to do so or have pulled out of Russia in the last decade because of the growing unreliability of Russia as a business partner. The RD-180 affair got a lot of publicity, all of it bad with regard to future Russian exports of high-end industrial items. Europe, which gets about a third of its natural gas from Russia, is already looking for alternate sources and investors are fleeing Russia (and taking their money with them).
[…]
This is good news for the new private firms that are developing rockets for launching stuff into orbit. One such firm is SpaceX (Space Exploration Technologies Corporation) and is has been trying to break the current cartel controlling U.S. government satellite launch services. Since 2006 all this business has gone to a government-approved monopoly called the ULA (United Launch Alliance) which is composed of Lockheed Martin (Atlas 5 rocket) and Boeing (Delta 4). These two firms have dominated U.S. space launches for over half a century. Because of the RD-180 the Atlas 5 is more attractive (in terms of performance and price) than the Delta 4. Meanwhile SpaceX expects to have Atlas 5 competitor ready in a few years.
In 2012 SpaceX obtained its first contract to launch U.S. military cargo into space. SpaceX had earlier obtained a NASA contract which included 12 deliveries to the International Space Station (at $134 million each). What makes all this so noteworthy is that SpaceX developed its own launch rockets without any government help. SpaceX also developed the Dragon space vehicle, for delivering personnel and supplies to the International Space Station.
SpaceX has since proved that its rockets work and is pointing out that the SpaceX rockets can do the job cheaper that ULA. Currently ULA gets a billion dollar a year subsidy from the government that SpaceX would not require. SpaceX still has to get all the paperwork and approvals done so that they can handle classified missions. SpaceX does not see this as a problem, it’s simply going to take another year to satisfy all the bureaucrats and regulations.
