MOSCOW — The Russian and American partners in International Launch Services expect an upsurge of business in 2001 following the U.S. government’s decision not to seek a new bilateral agreement restricting the number of American satellites that can be launched aboard Russian rockets.

"We, of course, welcome this decision," said Sergei Gorbunov, a spokesman for the Russian Aviation and Space Agency (Rosaviacosmos), which oversees Russia’s space industry. "Now we can look into the future with more confidence that our industry will secure more deals in the international market for launches which has seen demand exceed supply in some sectors."

The Proton rocket is marketed commercially by International Launch Services, a joint venture of Khrunichev, Lockheed Martin Corp. [LMT] of Bethesda, Maryland and Rocket Space Corporation Energia of Korolev, Russia.

Khrunichev has launched 14 Protons this year, including six for commercial customers. Elimination of the quantity ceiling "probably" will allow Khrunichev to secure more than six commercial launches per year in the future, Khrunichev spokesman Andrei Gerbyshev told Spacenews.com in a phone interview.

Gerbyshev said existing limitations, contained in the U.S.-Russian space launch trade accord slated to expire at the end of the year, have hindered the center’s efforts to secure launch deals for 2001. Only three commercial Proton launches are planned for next year, the official said.

Mark Albrecht, president of International Launch Services, said he expects the lifting of the quotas to provide an immediate boost to the company’s launch orders. International Launch Services of Reston, Virginia markets both the Atlas and Proton launch vehicles.

"We’re obviously gratified," Albrecht said. "All year we have been making the case that the original intent of the quota was to make sure the Russian launch vehicles entered the market consistent with best market practices. The conditions have been met and satisfied, and we have a healthy marketplace. The original intent of the quota has been met and it is time to eliminate it."

Albrecht expects International Launch Services’ 2001 manifest to be well balanced between the Atlas and Proton.

Russian officials remain wary, however, that the U.S. State Department and Congress may intervene to block some launches of U.S. satellites.

"The State Department may try again to link the launch issue to some allegations of proliferation and block some deals," Gorbunov said.