To Invest, or Not to Invest: Skepticism and the US-Russia Relationship

A Momentus space vehicle, Fervoride, guiding a satellite to its destination in orbit.

Last week, the founder of Momentus Space, Mikhail Kokorich, abruptly resigned from his role as CEO. Kokorich’s involvement with Russian President Vladimir Putin and other Russian business institutions left regulators skeptical of the company—and ultimately suspended Momentus’s ability to go public. Because of Kokorich’s connections and his access to restricted technology, Momentus was unable to satisfy provisions on defense equipment and services for international trade. A public offering was expected in the coming weeks through Stable Road Acquisition Corp (SRAC) in a reverse-merger where they would be listed on the NASDAQ exchange. Kokorich’s resignation was intended to salvage the possibility of a public offering at a later date.

Momentus is still a young company, only being founded in 2017. But their “last mile delivery” technology is appealing to companies launching smaller satellites into orbit. The company’s services include helping transport satellites from rockets to their destinations in orbit. The public offering, which was said to value Momentus at roughly $1 billion, would be a very advantageous opportunity for the company to assert itself at the forefront of an emerging space market. They would become the first public company that specializes in space transport on the market. For an investor, that means uncharted territory with very little market history to study. However, the sentiment surrounding the public offering is not a first of its kind, and those interested in its future could benefit from looking deeper into the meaning behind Kokorich’s resignation.

Kokorich’s resignation shows that regulators are wary of the US-Russia relationship—but is that skepticism justified? And for investors, is there an actual reason to hesitate to invest in companies with Russian ties? Should non-American leadership impact the success of an American company? Since the 1990s, efforts have been made between the two nations to cooperate in space exploration and maintain a more collaborative dynamic. But when it comes to investing—when there is money on the line—does an element of distrust, hesitation, even heightened risk prevail? That exact element of unpredictability is fundamental to investing—but whatever the future of Momentus is for investors, that unpredictability must be something they are comfortable with.

Ross Kujdych is a Junior in Georgetown College studying Mathematics and Sociology. He is interested in the rapid innovations surrounding access to space, and how they impact our current lives on earth. Ross also looks forward to studying future investment opportunities that space technology and exploration offer.