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takyon writes:

The Russian space agency Roscosmos has been abolished following the recent failure of a Progress M-27M spacecraft and the $1.8 billion (92 billion rubles) of financial violations committed during 2014. Auditors found "violations included inefficient use of funds, misuse of appropriated funds, and violations in fiscal reporting methods." The agency's budget had already been cut by 35 percent in March. The Moscow Times reports:

Asked why Golikova had singled out Roscosmos if violations are rampant throughout the government, Pavel Luzin, a space industry analyst at Perm State University, said "the government needs to explain the current bad situation with the space industry and space program."

Despite numerous efforts to reform the space industry since a long streak of crashes and high-profile failures began in 2010, Russian rockets continue to explode and officials are at a loss as to how to fix the space industry's problems.

But while corruption in the space industry hinders effective reform, Luzin said the Audit Chamber's report does not necessarily mean that Roscosmos has stolen 92 billion rubles.

"Violations just mean disorder, because the Russian flow of documents is very intricate and it is impossible to keep all of them in order. Sure, some shady deals are possible, and moreover they take place, but it doesn't mean that all of the 92 billion rubles have been stolen. That's impossible," Luzin said.

The space agency will be replaced by a state corporation, also called Roscosmos. Deputy Prime Minister Dmitry Rogozin told a talk show that "It will take maybe another two to three years to intensively technically re-equip the rocket and space industry." He warned last week that Russia could lose its 40% share of the global commercial satellite launch market to firms such as SpaceX if reforms do not succeed.