Chinese drone parts in Russian weapons are helping Russia expand its drone war in Ukraine, Bloomberg reports. Documents reviewed by Bloomberg show Russian firm Aero-HIT partnered with Chinese suppliers and engineers to mass-produce combat drones now used across the frontline.

Chinese engineering behind Russia’s drone buildup

In early 2023, Aero-HIT began working with engineers from Autel Robotics, China’s major manufacturers of drones and drone parts, to adapt the civilian Autel EVO Max 4T for military use, according to Bloomberg. The model proved effective in combat and resistant to jamming.

Aero-HIT claims it can produce up to 10,000 drones per month at its Khabarovsk facility. Its Veles FPV drone has been deployed in Kherson and elsewhere. A March 2024 order priced the units at $1,000 each.

Chinese drone parts in Russian weapons still flowing

Despite sanctions, Chinese drone parts in Russian weapons continue reaching Russia through intermediaries. Bloomberg identified firms like Renovatsio-Invest and Shenzhen Huasheng Industry—both under US sanctions—as key suppliers. Civilian companies in sectors like seafood and catering were used to obscure transactions.

Autel says it cut ties with Russia in February 2022. Yet, documents show resumed contact with its engineers by late 2024 and production plans ongoing into 2025.

The drone project born in Harbin and built in Khabarovsk

The partnership began in late 2022, Bloomberg says. Russian company Komax, linked to sanctioned senator and ex-KGB officer Konstantin Basyuk, led talks with China’s Harbin Comprehensive Bonded Zone. In May 2023, a Russian delegation visited Autel and the Harbin Institute of Technology.

After the visit, Aero-HIT was registered, production began soon after. In August 2024, the Defense Ministry requested 5,000 Veles drones.

Russian weapons supply failure confirmed by courts is at the center of an investigation by The Insider, which analyzed arbitration rulings involving nine defense contractors. The findings reveal that sanctions are not just symbolic—they are dismantling the Kremlin’s war machine from within.

Fake parts, failed deliveries, and smuggling schemes

In case after case, Russian manufacturers admitted they could not fulfill military contracts due to the unavailability of sanctioned components. A shipment of programmable chips from Azimut LLC to NTC Elins was rejected after the Chinese replacements failed to function with the Ministry of Defense’s software. In court, Elins declared the chips unusable, citing their incompatibility.

Zaslon JSC, tied to United Russia’s Andrei Turchak, claimed a batch of microchips delivered under contract showed signs of tampering. The company’s technical experts pointed to “numerous scratches” consistent with reballing – tampering the microchips for the reuse. The court agreed and dismissed the supplier’s claim.

Russian courts expose offshore arms trafficking routes

One lawsuit revealed that Northern Star LLC imported banned electronics via ARP Investment, a firm registered in the British Virgin Islands. The operation routed shipments from Chinese firms under European branding. The court documents directly confirmed that Northern Star was supplying these goods for Russia’s Ministry of Defense.

The choice of the BVI—a British Overseas Territory—made the scheme unusually risky. UK authorities have access to its corporate registry, which means the real beneficiaries of such supply chains can be easily identified.

Drone development stalls as local components fail

NaukaSoft was tasked with delivering a power supply for SES-7000-NS drones. The supplier couldn’t manufacture key connectors—once a Soviet strength—leading to court-ordered penalties. Without access to lighter imported equivalents, the company failed to meet even basic technical specifications.

Shipbuilding delayed by failed sonar delivery

The Amur Shipbuilding Plant sued the Priboy Plant after it failed to deliver the Zarya-2 sonar system. The system, essential to the corvettes Grozny and Bravy, relied on components banned under EU sanctions. Priboy admitted its suppliers could not fulfill the order, and its efforts to use “domestic” replacements failed when the Russian-made parts were found to contain foreign chips themselves.

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Western manufacturers halt shipments after spotting deception

One legal dispute showed how a British manufacturer canceled delivery of specialized maritime communication modules after detecting at least ten conflicting orders—all designed to hide the Russian military end user.

“Since the end user of the product was the plaintiff,” the ruling states, the supplier “was unable to provide the documentation requested by the manufacturer.”

The module was for NII Elektropribor, which builds navigation and gyroscopy systems for military vessels.

Banking shutdowns block import routes in Central Asia and Türkiye

Technolink LLC’s attempts to import lab equipment were thwarted when banks in Kyrgyzstan and Türkiye closed accounts linked to suspect shipments. Courts revealed how one of the supplier’s Kyrgyz partners had its account shut down even before a contract was signed. In Türkiye, DenizBank closed accounts entirely.

Uzbek banks rejected payments based on customs commodity codes, while Kyrgyz authorities demanded import licenses. The courts ruled that these shutdowns were predictable under current sanctions conditions and rejected claims of force majeure.

Swiss sanctions freeze space systems deliveries

In another case, Russian Space Systems was left without frequency generators after Swiss company AnaPico AG halted deliveries. AnaPico’s Russian partner admitted in court it could no longer fulfill contracts after Swiss authorities intervened. Russian courts terminated the contract.

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Domestic replacements fall short—even when available

The Russian National Guard refused to accept an anti-drone system after the Ford Transit chassis was replaced with a GAZelle, citing contract violations. The supplier blamed foreign automakers’ exit from Russia. The court ruled that the supplier had no alternative and upheld the replacement.

Courts confirm systemic failure in Russian weapons supply

Across every case, Russian arbitration courts exposed a common thread: the country’s military industry cannot operate without sanctioned foreign tech. None of the failures involved personal sanctions—only export controls on dual-use, non-consumer goods.

The Insider’s investigation concludes that Russia’s efforts to smuggle, substitute, or manufacture its way around sanctions fail. The courts have documented the consequences: stalled ships, grounded drones, rejected deliveries, and a defense sector in crisis.

“The conclusion is clearly supported by Russian court rulings: sanctions are having a material impact on the work of Russia’s military-industrial complex,” The Insider’s investigation wrote.

Czech counterintelligence will investigate domestic companies allegedly involved in exporting machinery to Russia for weapons manufacturing. The Czech Security Information Service (BIS) says it will act once official information is provided, according to iRozhlas.

On 21 June, Zelenskyy told reporters that Russia continues receiving machine tools from foreign companies, including eight based in the Czech Republic. He said these tools are used for weapons manufacturing. Though he withheld specific names, Zelenskyy stated he knows the companies involved and urged sanctions against them.

BIS awaits official list, doubts direct Czech exports

BIS spokesperson Ladislav Šticha told iRozhlas that Czech authorities have yet to receive any official list of the companies Zelenskyy mentioned.

“It is therefore very difficult to comment on which companies and goods are involved,” Šticha stated.

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According to him, hundreds of companies are attempting to export to Russia. Šticha added that many of the now-embargoed items were exported before Russia’s full-scale invasion of Ukraine in 2022, when such trade was still legal.

BIS believes it is “almost certain” none of the cases involve direct exports from the Czech Republic to Russia, as such transfers require a license and could not legally cross borders otherwise.

Third-country reexports suspected

Šticha suggested that it could be goods delivered legally before 2022 or re-exported via other countries. In some cases, companies may have sold products to “safe” nations, including EU members, not realizing they would be reexported to Russia.

“Firms often argue they were unaware of subsequent resales, and it’s very difficult to prove otherwise,” Šticha noted.

Recently, Ukrainska Pravda reported that the Czech company Leseft International s.r.o., located in Ostrava, may have been involved in delivering components used in Russian rockets. Šticha declined to comment directly but confirmed:

“This company is not unknown to us.”

Sanctions evasion

According to Šticha, BIS handles dozens of cases annually where companies attempt to bypass sanctions by routing embargoed items through complex export networks. The agency cooperates with other state institutions and foreign partners to intercept such attempts.

Šticha stressed that the number of state experts is too small compared to the volume of companies attempting to skirt sanctions.

Last week, Czech Foreign Minister Jan Lipavský stated that based on Ukrainian-provided information, Czech authorities have found no indicators confirming the transfer of dual-use items to Russia.