The decision, which came at the special meeting at the agency's Moscow headquarters was expected since RKK Energia, Mir's principal operator, assured the agency that any new Mir expeditions would be financed independent of government financing.

The news from Moscow came amid confirmation from the leaders of a U.S.-based campaign to save Mir that a new private company is being set up in a neutral European country to finance and operate the currently uninhabited space station.

"Now we can combine the Russian ability to build and operate the spacecraft with the Western financial resources and marketing power."

Rick N. Tumlinson, the head of a non-profit charitable organization Foundation for the International Non-governmental Development of Space, told space.com that the venture would be officially launched at the end of the month.

"The CEO of the new company has already been found and the process of hiring staff is underway," Tumlinson said. The company will start as a private enterprise, with the eventual goal to go public, he added.

The financial backing for the new venture comes from the Washington, D.C.-based Gold & Appel.

The company confirmed with space.com that it has already transferred $7 million to RKK Energia, to partially cover expenses for the upcoming mission to Mir. The company expects to invest $20 million by March to finance Mir operations.

RKK Energia earlier estimated that piloted operations on Mir cost around $250 million a year.

Sergei Gormov, RKK Energia spokesman, confirmed that initial investments to finance Mir have already been made by Gold & Appel and additional negotiations to commercialize the station are currently underway.

Walt Anderson, a fund adviser for Gold & Appel, told space.com that his company is currently in process of negotiating a possible deal with RKK Energia to lease or own Mir. "We are very optimistic and expect to sign a final agreement at the end of the month," Anderson said.

As an offshore venture firm, Gold & Appel previously invested in the number of private and public high-tech and communications companies, Anderson said. The company has also been one of the original members of the Space Frontier Foundation, which actively campaigned for the salvaging of Mir.

James Stuart, the executive director for Space Frontier Foundation told space.com that along with the company, a number of other private ventures expressed a genuine interest in financing Mir.

He named orbital satellite repairs, space tourism and pharmaceutical research among commercial applications of the space station.

RKK Energia had recently announced several possible deals with private investors to finance Mir, only to see them all to fall through.

Anderson and Tumlinson agree that negative media campaign around the station contributed to the failure of the earlier efforts to commercialize it. "Now we can combine the Russian ability to build and operate the spacecraft with the Western financial resources and marketing power," Tumlinson said.

If the latest plan works, it will be an unprecedented first: The conversion of a piloted space facility to commercial operations.

Washington D.C.-based Spacehab Corp. recently announced its plans to finance the construction of a habitable module for the International Space Station.

"Spacehab may very well have political problems with NASA to operate its module at the ISS, and if they do, we will be happy to cooperate with them on Mir plans instead," Anderson said.

The plans to reactivate Mir still have to be approved by the Russian government. Rosaviacosmos representatives said that government's go ahead for the new mission is expected on January 20.

According to the current schedule, a Soyuz spacecraft with the crew including Commander Sergei Zaletin and flight engineer Alexander Kaleri is scheduled to take off from Baikonur Cosmodrome on March 30.

Two Progress cargo ships will be needed to support the initial 45-day mission, though the mission can be extended as additional money is found, RKK Energia representatives said.