Vladimir Popovkin of the Roscosmos Federal Space Agency said Monday the reform would make the troubled industry more manageable.
The country's space industry has suffered a numbers of failures in its mission launch attempts in recent years, including the recent loss of two telecommunications satellites caused by a malfunction of the Proton M rocket launch vehicle.
Russia's space industry grew fractured in the 1990s when it lost most of its government funding, resulting in 130-plus enterprises developing vastly different ownership structures, RIA Novosti said.
A proposed list of industries to get separate holdings includes orbital spacecraft development, in-orbit operation, guidance systems, scientific research, testing and strategic rocketry, Deputy Prime Minister Dmitry Rogozin said Monday.
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