By Robert Wall
PARIS--U.S. and European sanctions against Russia haven't been a
major headache for most Western companies yet, but they are sending
some executives scrambling for ways to avoid getting snarled up in
them.
The latest example: One of Europe's leading satellite makers is
replacing U.S. components from a Russia-bound spacecraft to avoid
running afoul of American sanctions against Moscow.
ThalesAleniaSpace, a Franco-Italian joint venture, is building a
commercial telecommunications satellite for Russia. The satellite,
the Yamal-601, is being purchased by Gazprom Space Systems to
provide communications links over a region spanning from Europe to
southeast Asia.
The U.S. and European states have announced a series of
sanctions against Russia, including the transfer of some so-called
dual-use items that could have commercial as well as military
usage. ThalesAleniaSpace wasn't certain its satellite would have
fallen under the sanctions restrictions, but since some of the
parts are American, "we prefer to be cautious," said Jean-Loïc
Galle, chief executive of the partnership.
"There have been some new rules concerning U.S. export
regulations toward Russia. We had to take this into account," Mr.
Galle said.
The partnership is owned in equal parts by France's Thales SA
and Italy's Finmeccanica SpA.
The company replaced U.S. components with European ones on the
Gazprom spacecraft without delaying delivery plans, Mr. Galle
said.
Export of sensitive equipment related to aerospace has been a
hot-button trans-Atlantic issue, as many Western companies rely on
Russian rockets for things like satellite launches. Russian rockets
currently provide the only means for astronauts to access the
International Space Station.
Inmarsat PLC expects to launch its next Boeing-built Global
Xpress satellite on a Russian-built Proton rocket by early next
year, once the commercial booster has been cleared to resume flying
after a May accident, said Inmarsat Chief Executive Rupert
Pearce.
The Pentagon is taking measures to wean itself of dependence on
Russian technology. The Atlas V rocket used to launch U.S. spy
satellites and sold by United Launch Alliance, a joint venture of
Lockheed Martin and Boeing, uses a Russian-built engine, the RD180.
Since tensions with Russia have escalated, the Pentagon has been
considering other options.
Write to Robert Wall at robert.wall@wsj.com