Full Breakdown
Eutelsat Terminates Contracts for Russian Satellites Amid Operational Failures
3/14/2026, 10:02:12 PM
Overview of the Termination of Contracts
Eutelsat, a Paris-based satellite operator, has terminated its capacity leases on two Russian satellites, Express-AT1 and Express-AT2, following operational failures and ongoing sanctions related to Russia's invasion of Ukraine. The decision comes after Express-AT1 ceased operations on March 4, 2026, for reasons that remain unclear, while Express-AT2 is set to relocate from its position at 140 degrees East.
Impact of the Termination
The termination of these contracts is expected to have a low single-digit million euro impact on Eutelsat's revenues for the fiscal year 2025-2026, but the company anticipates virtually no effect on its earnings before interest, taxes, depreciation, and amortization (EBITDA). Eutelsat's GEO fleet now comprises 31 satellites, a reduction from 33, as the company continues to adapt to a declining demand for satellite television services.
Background on the Satellites
Express-AT1 and Express-AT2 were launched in 2014 and were part of a lease agreement with the Russian Satellite Communications Company (RSCC). The satellites were intended to complement Eutelsat's own satellites, Eutelsat 36C and 36D, located at 36 degrees East. The failure of Express-AT1 and the planned relocation of Express-AT2 have prompted Eutelsat to reassess its involvement with Russian satellite capacity.
Financial Context
Eutelsat's recent earnings report indicated a 12.3% decline in video revenues across its GEO fleet, totaling approximately 267 million euros ($306 million) for the six months ending December 31, 2025. This decline is attributed in part to additional sanctions affecting Russian channels. However, overall revenue rose slightly by 0.1% to around 592 million euros, driven by growth in its OneWeb low Earth orbit (LEO) broadband network, which now accounts for about 20% of Eutelsat's total revenue.
Official Statements on the Decision
Eutelsat officials have stated that the long-standing agreements with RSCC no longer align with the company's business objectives due to sanctions and the structural decline in satellite television demand. A spokesperson noted, “These were long-standing arrangements, but due to sanctions and underlying structural decline in video, they no longer support the same business case as when they were originally signed.”
Criticism and Opposition
Eutelsat has faced scrutiny regarding its relationships with Russian entities amid ongoing geopolitical tensions. The termination of these contracts may be seen as a necessary step to align with international sanctions, but it also reflects the broader challenges facing the satellite television industry.
Conclusion
The termination of the leases for Express-AT1 and Express-AT2 marks a significant shift for Eutelsat as it navigates the complexities of operating in a market affected by geopolitical factors and declining demand for traditional satellite services. The company’s strategic focus appears to be shifting towards its LEO broadband initiatives, which have shown substantial growth in recent years.
