SpaceX faces opposition to Starlink expansion from Ukrainian group concerned about Musk ties to Russia
The Starlink logo is seen on a mobile device with an grahpic illustration of planet Earth in this illustration photo in Warsaw, Poland on 21 September, 2022.
STR | Nurphoto | Getty Images
SpaceX’s effort to put an additional 22,488 satellites into low-earth orbit is facing a formal objection from a Ukrainian-American nonprofit, which says it’s concerned about CEO Elon Musk’s “contacts with Russia and the alleged use of his Starlink system by Russian forces in Ukraine.”
In a petition to deny and motion for stay filed with the Federal Communications Commission on Wednesday, the Ukrainian Congress Committee of America (UCCA) also cited negative environmental impacts of SpaceX launches in Texas and Musk’s potential conflicts of interest due to his work with the incoming Trump administration.
SpaceX’s Starlink system has been linked to Ukraine since terminals arrived there shortly after Russian troops invaded the neighboring country in early 2022. The following year, the Pentagon agreed to purchase Starlink satellite internet terminals for use in Ukraine’s ongoing defense against Russia.
However, in September 2023, Americans of Ukrainian descent rebuked the SpaceX CEO after it emerged that he had thwarted a major attack on the Russian navy. Musk said at the time that he had told his engineers not to turn on SpaceX’s Starlink satellite network over Crimea in order to prevent a planned attack by Ukraine on the Black Sea fleet in 2022.
“There is a necessity to determine if Starlink has been used to help a foreign adversary,” UCCA President Michael Sawkiw, Jr., told CNBC, regarding the group’s decision to file a petition and motion to the FCC this week. “If yes, this is not in the national security interest of Ukrainian-Americans, or of the entire country.”
The UCCA isn’t the only group concerned about Musk’s relationship with the Kremlin.
The Wall Street Journal reported in October that Musk had engaged in a series of “secret conversations” with Russian President Vladimir Putin leading up to the 2024 presidential election. Members of Congress and NASA Administrator Bill Nelson have called for an investigation into those contacts.
A month before the Journal story, Newsweek and others reported that Russia had installed Starlink terminals in its Iranian-designed Shahed drones, used in their military offense in Ukraine. Starlink didn’t provide a comment for the story, but earlier in the year, in February, Musk said in a social media post that news reports suggesting Starlink was selling terminals to Russia were “categorically false,” and that “to the best of our knowledge, no Starlinks have been sold directly or indirectly to Russia.”
Sawkiw said his group advocates for causes of concern to an estimated 2 million Americans of Ukrainian descent living in the U.S. today, many of whom arrived after the war began in February 2022.
The Starlink satellites referred to in the petition would enable the company to deliver internet services to more destinations around the world as part of its Gen2 NGSO Satellite System.
Musk didn’t respond to a request for comment, nor did Tim Hughes, senior vice president for global business and government affairs.
Potential conflicts of interest
If Sawkiw’s group succeeds on legal merits, the FCC may have to pause approvals for SpaceX, leaving time for an environmental review, and for a plan to resolve any conflicts of interest arising from Musk’s new role with the forthcoming Department of Government Efficiency (DOGE).
DOGE is expected to function as a federal advisory committee that will have influence over regulations, government spending and personnel. The group could potentially recommend major changes at the FCC and influence the oversight of SpaceX and other Musk-led companies.
“Musk’s conflicts run the full gamut from financial to objectivity,” UCCA wrote in the petition. “His companies stand to financially benefit both from receiving government contracts and from actions taken by the federal government, including the FCC. Placing Musk at the head of DOGE is equivalent to allowing a fox to guard the henhouse.”
The motion asks the FCC to determine how Musk will comply with the Federal Advisory Committee Act, given his role with DOGE, before it authorizes any further SpaceX requests.
Regarding environmental concerns, UCCA’s lead regulatory counsel Arthur Belendiuk wrote in the filings to the FCC that the SpaceX launch facility in Boca Chica, Texas is “a biologically diverse and essential habitat area for many species, including wildlife protected under the Endangered Species Act.” Referencing prior incidents, he added that, “Rocket launches in this area create the real risk of fire and debris being ejected onto adjacent environmentally protected lands.”
After reports that vibrations and noise from SpaceX launches led to the destruction of nine nests of an endangered bird species in the area, Musk wrote in a post on X in July, “To make up for this heinous crime, I will refrain from having omelette for a week.”
Belendiuk wrote in the petition that instead of remedying the damage caused by SpaceX launches, Musk “responds to the legitimate concerns of local environmental groups with sarcasm and mockery.”
The UCCA had filed comments in April against SpaceX in a separate FCC proceeding pertaining to a request by the company to access additional spectrum for its Starlink network.
Republican FCC Commissioner Brendan Carr said at the time that the group’s comments were “procedurally improper and substantively meritless,” and that it effectively wanted “the government to break the law by weaponizing it” against Musk.
Now, President-elect Donald Trump has nominated Carr to lead the FCC in his second administration. Carr’s office didn’t respond to a request for comment.
Belendiuk told CNBC that his group’s “focus isn’t solely on Musk or SpaceX.”
The group took legal action to take Radio Sputnik, which broadcast Russian government propaganda, off the public airwaves in the U.S., Beledniuk said, and is “actively engaged in discussions with chipmakers whose sanctioned products have been found in Russian weapons systems.”
WATCH: It’s impossible for DOGE to cut government spending without touching the defense budget
Industrial and infrastructure stocks may soon share the spotlight with the artificial intelligence trade.
According to ETF Action’s Mike Atkins, there’s a bullish setup taking shape due to both policy and consumer trends. His prediction comes during a volatile month for Big Tech and AI stocks.
“You’re seeing kind of the old-school infrastructure, industrial products that have not done as well over the years,” the firm’s founding partner told CNBC’s “ETF Edge” this week. “But there’s a big drive… kind of away from globalization into this reshoring concept, and I think that has legs.”
Global X CEO Ryan O’Connor is also optimistic because the groups support the AI boom. His firm runs the Global X U.S. Infrastructure Development ETF (PAVE), which tracks companies involved in construction and industrial projects.
“Infrastructure is something that’s near and dear to our heart based off of PAVE, which is our largest ETF in the market,” said O’Connor in the same interview. “We think some of these reshoring efforts that you can get through some of these infrastructure places are an interesting one.”
The Global X’s infrastructure exchange-traded fund is up 16% so far this year, while the VanEck Semiconductor ETF (SMH), which includes AI bellwethers Nvidia, Taiwan Semiconductor and Broadcom, is up 42%, as of Friday’s close.
Both ETFs are lower so far this month — but Global X’s infrastructure ETF is performing better. Its top holdings, according to the firm’s website, are Howmet Aerospace, Quanta Services and Parker Hannifin.
Supporting the AI boom
He also sees electrification as a positive driver.
“All of the things that are going to be required for us to continue to support this AI boom, the electrification of the U.S. economy, is certainly one of them,” he said, noting the firm’s U.S. Electrification ETF (ZAP) gives investors exposure to them. The ETF is up almost 24% so far this year.
The Global X U.S. Electrification ETF is also performing a few percentage points better than the VanEck Semiconductor ETF for the month.
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