Eutelsat Severs Russian Satellite Capacity Agreements

Eutelsat terminates RSCC capacity deals with minimal financial impact. The move, driven by technical issues, does not alter the firm's core strategy of expanding its OneWeb LEO constellation.

The Franco-European satellite operator Eutelsat has terminated its capacity agreements with Russian state-owned company RSCC for the Express AT1 and Express AT2 satellites. The contracts will cease on March 22, 2026. Company officials emphasize the decision stems from technical developments rather than a shift in corporate strategy.

Minimal Financial Impact Forecast

Eutelsat expects a negligible effect on its financial performance. The revenue loss from ending these two contracts is estimated to be in the low single-digit millions of euros. Consequently, the company's EBITDA for the 2025/26 fiscal year is projected to remain virtually unchanged. The termination was triggered by the technical failure of the Express AT1 satellite at the 56° East orbital position and plans to reposition the Express AT2 satellite. A separate satellite, Express-AMU1, continues normal operations, providing video and broadband services to customers.

Strategic Focus Remains on Low Earth Orbit Expansion

Analysts view this contract adjustment as a minor operational footnote against the backdrop of Eutelsat's larger strategic ambitions. The company's primary agenda continues to be the aggressive development of its Low Earth Orbit (LEO) constellation via the OneWeb platform. This expansion includes procuring new satellites to ensure service continuity and future growth.

The move aligns with recent financial maneuvers to bolster this strategy. In February 2026, Eutelsat successfully placed a €1.5 billion bond, with proceeds earmarked for strengthening its balance sheet and financing the ongoing LEO network expansion. The conclusion of the RSCC agreements does not alter this core strategic direction.