27 November 2024,   03:31
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Musk’s SpaceX says it can no longer pay for critical satellite services in Ukraine, asks Pentagon to pick up the tab

Since they first started arriving in Ukraine last spring, the Starlink satellite internet terminals made by Elon Musk’s SpaceX have been a vital source of communication for Ukraine’s military, allowing it to fight and stay connected even as cellular phone and internet networks have been destroyed in its war with Russia, writes CNN.

“So far roughly 20,000 Starlink satellite units have been donated to Ukraine, with Musk tweeting on Friday the “operation has cost SpaceX USD 80 million and will exceed USD 100 million by the end of the year”.

But those charitable contributions could be coming to an end, as SpaceX has warned the Pentagon that it may stop funding the service in Ukraine unless the US military kicks in tens of millions of dollars per month.

Documents obtained by CNN show that last month Musk’s SpaceX sent a letter to the Pentagon saying it can no longer continue to fund the Starlink service as it has. The letter also requested that the Pentagon take over funding for Ukraine’s government and military use of Starlink, which SpaceX claims would cost more than $120 million for the rest of the year and could cost close to $400 million for the next 12 months.

“We are not in a position to further donate terminals to Ukraine, or fund the existing terminals for an indefinite period of time,” SpaceX’s director of government sales wrote to the Pentagon in the September letter.

Among the SpaceX documents sent to the Pentagon and seen by CNN is a previously unreported direct request made to Musk in July by the Ukrainian military’s commanding general, General Valerii Zaluzhniy, for almost 8,000 more Starlink terminals”.

In a separate cover letter to the Pentagon, an outside consultant working for SpaceX wrote, “SpaceX faces terribly difficult decisions here. I do not think they have the financial ability to provide any additional terminals or service as requested by General Zaluzhniy”.

The documents, which have not been previously reported, provide a rare breakdown of SpaceX’s own internal numbers on Starlink, detailing the costs and payments associated with the thousands of terminals in Ukraine. They also shed new light on behind-the-scenes negotiations that have provided millions of dollars in communications hardware and services to Ukraine at little cost to Kyiv”, - writes the author.

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