Russian space rocket corporation Energia head Vitaly Lopota on Wednesday rejected as a "non-market" measure the idea of establishing an engine holding company in the domestic space industry. "This proposal would completely eliminate the competitive environment in the country," Lopota said.

In the meantime, a Russian Federal Property Management Agency official said the issue was being discussed at several levels.

"The central issue is how Russia can compete on the international market. Besides, no one can so far answer the question of what is better: a vertically or horizontally integrated company," said Sergei Barinov, deputy head of the Agency's infrastructural, defense and military industry management department.

Russian Space Agency Roscosmos head Vladimir Popovkin had previously said Russia planned to create a single holding company for booster rocket production to integrate the country's leading space vehicle producers Khrunichev and TsSKB Progress, and also an engine-building sub-holding company to include engine makers Energomash, the Khimavtomatiki design bureau, the Voronezh mechanical works, Proton PM and other firms.

Russian Prime Minister Dmitry Medvedev ordered the government in summer to work out a plan to improve Russia's space industry organizations, after a string of mishaps that he said have compromised Russia's image as a leading space power.

in the most recent failure on August 7 Russia's Proton carrier rocket launched from the Baikonur space center in Kazakhstan failed to deliver two satellites onto their designated orbit because of a suspected mishap in the engines of its Briz-M booster.

The satellites - Russia's Express MD2 and Indonesia's Telkom-3 - were lost as a result.

Source: RIA Novosti