Russia and Iran still importing Shahed drone components from China despite sanctions - WSJ
Russian Shahed drone shot down in Ukraine (Photo: Ukrainian Air Force)
Iran and Russia have increased purchases of drone components from China despite U.S. and EU sanctions, The Wall Street Journal, citing former U.S. Treasury officials and industry analysts, reported on May 5.
Conflict Armament Research, a U.K.-based organization that investigates illegal arms trafficking, has documented a “discernible increase” in the use of components produced by Chinese manufacturers in Shahed-type drones. Ukrainian military officials have also reported a large number of Chinese components in Russian drones.
Chinese customs data suggested that domestic companies are shipping hundreds of containers filled with dual-use goods – items that can be used to produce weapons – to Russia and Iran. The cargo on packing lists range from engines to computer chips, fiber-optic cables, and gyroscopes.
Chinese exporters earlier intentionally mislabeled some shipments to skirt U.S. and European sanctions, but in many instances they no longer bother, according to WSJ sources.
Chinese exports for fiber-optic cables spiked in the fall of 2024, shortly after Russia successfully used fiber-optic drones to counter Ukrainian defense forces in Kursk, according to the report. These exports rose even more sharply in April 2025 after Ukrainian forces knocked out Russia’s main domestic supplier of fiber-optic cables in Saransk.
Official customs data showed that Moscow also increased its import of Chinese lithium-ion batteries for UAVs.
Similar spikes in battery and fiber-optic cable exports to Iran appeared in July and August last year, immediately after Iran’s 12-day war with Israel, the WSJ wrote.
China has long served as a hub for shipping American and European-made components that could then be diverted to drone factories in Iran and Russia.
A U.S. Treasury Department investigation found that virtually all American and European components were diverted through authorized distributors to retailers in mainland China or Hong Kong, which would then ship the parts to Iran or Russia.
Payment was typically made via shell companies that are easy to set up in Hong Kong and help obscure the ultimate destinations of these components.
The Chinese turned a blind eye to that flow even as its role has been repeatedly exposed in public reporting and sanctions designations,” said Miad Maleki, a former U.S. Treasury official who oversaw sanctions programs.
“They either don’t care or have chosen not to interfere.”
Much of the recent trade in dual-use goods to Iran and Russia is driven by small Chinese companies that see an opportunity to capitalize on war-driven demand. These firms rarely deal in dollars and therefore have little to fear from U.S. sanctions, the WSJ wrote.
One such company, Victory Technology, launched a website in late January, when the U.S. started building up military assets in the Middle East to confront Iran. They are openly selling UAV engines, claiming the goods are intended for domestic civilian use.
The U.S. can’t fully stop the trade so its aim is to raise costs for Iran and Russia as much as possible, as of current and former U.S. officials. Forcing them to rely on lower-quality Chinese parts is part of that effort, the WSJ article stated.
Will you support Ukraine’s free press?
Dear reader, as all news organizations, we must balance the pressures of delivering timely, accurate, and relevant stories with requirements to fund our business operations.
As a Ukrainian-based media, we also have another responsibility – to amplify Ukraine’s voice to the world during the crucial moment of its existence as a political nation.
It’s the support of our readers that lets us continue doing our job. We keep our essential reporting free because we believe in our ultimate purpose: an independent, democratic Ukraine.
If you’re willing to support Ukraine, consider subscribing to our Patreon starting from 5$ per month. We are immensely grateful.
Please help us continue fighting Russian propaganda.
Truth can be hard to tell from fiction these days. Every viewpoint has its audience of backers and supporters, no matter how absurd.
If conscious disinformation is reinforced by state propaganda apparatus and budget, its outcomes may become deadly.
There is no solution to this, other than independent, honest, and accurate reporting.
We remain committed to empowering the Ukrainian voice to push against the muck. If you’re willing to stand up for the truth – consider supporting us on Patreon starting from 5$ per month. Thank you very much.
Will you help tell Ukraine’s story to the world?
Twenty years ago, most people hadn’t even heard of Ukraine. Today, the country is on everyone’s lips and everyone’s headlines. War pushed us on the front page. But there are many other things we do that we are proud of – from music and culture to technology.
We need your help to tell the world Ukrainian story of resilience, joy, and survival. If you’re willing to back our effort, consider supporting us on Patreon starting from 5$ per month. We are immensely grateful.
Follow us on Twitter, Facebook and Google News
