Roscosmos, the agency responsible for cosmonautics program for Russia, is facing budget cuts amounting to $2.4 billion in the next three years, according to sources.

The funding shortages came as competitor SpaceX claims to be nearing the trial stage of a reusable Mars rocket in the next 10 years. The company is also reportedly conducting a hiring spree, recruiting people that could build rocket ships going to Mars and could bring NASA astronauts to their space missions.

Meanwhile, in a press conference on Thursday, June 7, President Vladimir Putin appeared to be confident that Russia will return as the leader in space exploration. He mentioned about the country's plan of exploring the deep space and launching more than 600 satellites in the next few years.

Budget Cut

Roscosmos had goals of launching eight to 10 unmanned missions per year under its Vostochny Cosmodrome mission. Under the project, Roscosmos was also supposed to launch its first missile with a crew to the International Space Station after 2023.

However, the federal budget allotted for the agency for the period of 2017 to 2025, which was to be initially given in 2019, could be 17 billion rubles less, or more than $200 million less than what was originally planned. The budget to be given in 2020 could have a deduction of as much as 52 billion rubles, or about $800 million. By 2021, the budget could be 75 billion rubles less, or about $1 billion less than what was previously promised by the government.

"The lack of funds has already become a reason of delays in the development of interplanetary projects, slowing down construction of the second stage of the Vostochny Cosmodrome and the development of new rocket and space equipment," the source revealed.

Reusable Rocket

Amid the looming budget cut, Russia has stated its plan of building a reusable rocket that will return to Earth like an airplane. Boris Satovsky, project manager, said the rocket is designed with its first stage separating at an altitude of 59 to 66 kilometers and returning to the launch area through a normal course landing.

The rocket, however, can only carry 600 kilograms of payload into orbit. This means it belongs in a lightweight category as compared to the rocket being developed by SpaceX and even Blue Origin.

Russia had been at a similar crossroad before. In the late 1980s and early 1990s, its reusable rocket program was canceled after the Russian government decided against funding the project.

Russia's Return As Leader In Space Exploration

Putin appeared to be optimistic that Russia would revert into its leading position in space discovery. The Russian president highlighted the country's milestones in space: the Soviet Union launched the world's first artificial satellite, and the first man in outer space, Yuri Gagarin, was Russian.

Putin mentioned about Russia's new program called Sfera, which involved launching more than 600 satellites in a few years' time. The president described it as a "breakthrough" and a possible "revolution" in communications.

Putin said that Russia will continue to explore deep space with its cosmodrome missions. Based on his answers during the press conference on Thursday, it seems that Roscosmos projects will be happening according to plans.

"By 2022, we plan to hold the trials of a super-heavy rocket and by 2022 these should be launches in an unmanned mode and by 2024 already manned space vehicles should be used," Putin outlined.

"It is not accidental that we have spent quite substantial funds and resources to create a new cosmodrome in the east of our country," he added.