"It has not been solved within the framework of completing the year 2000 or within the framework of meeting ISS commitments in 2001," Yuri Koptev said in response to journalists' questions during the opening of the 3rd International Aerospace Congress on Wednesday.

"Rosaviakosmos and appropriate departments are now coming to grips with the problem. Certain changes are in the offing and some serious decisions have been adopted, in particular by the Finance Ministry's leadership, but there is no money so far," Koptev said.

At the same time, even if new modules for the ISS Russian segment are not built and only the most essential actions are completed to guarantee the functioning of the station, the Russian side must carry out eight launches in 2001 by sending six cargo and two manned ships to the ISS, he said.

A reserve of spaceships already needs to be created for both 2001 and 2002. A spacecraft takes a year and a half to build and a rocket booster takes a year to make, Koptev said.

More than 20 ships are currently under construction on a sponsorship basis at the expense of financial sources found by the manufacturers themselves, he said.

"Today, there are no technical restrictions for the producers in terms of implementing the ISS project, nor are there insurmountable political issues," the Rosaviakosmos chief said.

"Relationships of complete understanding have emerged with foreign counterparts. The ball is now in our court - Russia must carry out the agreement signed by representatives of 16 countries, participants in the project, in January of last year.

A special clause in the document makes a reservation that each of the countries ensures the financing of its participation in the project. If Russia finds no money to fulfil its obligations, it will have to look for a civilized way out of the ISS construction project, but I am sure that the country's leadership will never go for this," he said

Koptev said he believes that when the 2001 budget draft goes to the State Duma the problem of ISS financing will certainly be raised and the country's leadership will have to re-examine it. The Rosaviakosmos chief said he hopes for a favorable decision.

Russia's RSC Energia and the U.S. Spacehab company signed a joint agreement on May 19, 2000 to design and operate the Enterprise, the press release says. No other feasible commercial projects for the ISS Russian segment are currently being considered, it said.

The Enterprise is not only expected to function in the Russian segment as the earlier planned docking and storing module, but will assist in various commercial projects concerning the transmission of video images from space and the propagation of information through Internet.

The Enterprise is being designed and manufactured by Energia in cooperation with Spacehab and is to be put into orbit by a Zenit booster rocket in early 2003. Founded in 1984, Spacehab provides commercial services for space studies. In its contracts with NASA, it supplies laboratory equipment and equipment for space shuttles.

Energia is the main developer of the ISS Russian segment and has also designed its main elements and integrated them with the station. It created the Russian service module Zvezda, docked it with the ISS and activated it as the key element of this station, the press release says.