Russia has begun assembling the first Kazakh telecommunications satellite, local media reported Monday.

Alexander Medvedev, head of the Khrunichev State Research and Production Space Center, was reported by Khabar television as saying the work is being carried out in accordance with the schedule established by the two nations' governments.

The satellite, called KazSat, will be put into orbit by the end of the year, the TV report said.

Russia will place the satellite in a geostationary orbit, Medvedev said, at about 22,000 miles above Earth's equator. At this altitude the satellite's period of rotation – 24 hours – matches Earth's, so the satellite always appears to remain over the same spot on the ground.

The satellite is designed for TV signals and providing data on mineral resources and natural anomalies. The designers said KazSat could also help fight terrorism, the Khabar TV report said. The satellite's signals will cover Central Asia and a bigger part of Russia.

KazSat will save the government about $40 million a year, which Kazakhstan currently pays for leasing foreign satellites, the Khabar report said.