[Satellite TODAY Insider 11-21-11] European satellite manufacturer Thales Alenia Space has entered into an agreement pact with its Russian peer ISS Reshetnev to begin sculpting the launch of a joint venture that will build commercial telecommunications satellites, the companies confirmed Nov. 18.

   The French-Russian joint venture aims to develop, produce and integrate new communications satellite platforms offering more than 12 kilowatts of power, as well as components and subassemblies for satellite platforms and payloads.

   In the past decade, Thales Alenia Space has worked both with and against Reshetnev. The two entities have co-developed telecommunications satellites for several satellite programs, with Thales Alenia Space producing electronics payloads for Reshetnev-designed platforms. Reshetnev also has bid against Thales Alenia Space when competing for telecommunications satellite bids outside of Russia.

   Thales Alenia Space’s competitor in Europe, Astrium Satellites, also has plans for the Russian market. The company recently partnered with Khrunichev Space Center of to build a large telecommunications satellite for the Russian Satellite Communications Co. (RSCC).

   Thales and Reshetnev said the upcoming joint venture would target Russia’s two largest satellite fleet operators RSCC and Gazprom Space Systems, which have recently unveiled billion-dollar plans to expand their fleets in response to Russia’s rapidly growing commercial and government markets. Earlier this year, RSCC teamed with FSS operator Eutelsat, while its rival operator SES signed with Gazprom.

   The two manufacturers also noted that the joint venture aim is to offset the high value of the euro against the U.S. dollar by bidding on competitions with a company whose costs are not in euros.