THE EUROPEAN Bank for Reconstruction and Development (EBRD) is providing a $60 million repayment guarantee to European communications-satellite operator Eutelsat, following its award of a contract to the Russian company NPO-PM to build and launch the Sesat spacecraft in 1998.
Under the terms of the guarantee, non-performance of the contract is linked to "certain risks in Russia", says Eutelsat. The Russian Government, recognising the importance of the work to the future of its aerospace industry, has agreed to provide a counter-guarantee to the EBRD in the event that a payment has to be made to Eutelsat.
Source: Flight International