The U.S. Treasury Department has imposed sanctions on three Chinese companies and one individual involved in developing drones that Russia is using to strike critical infrastructure in Ukraine.
This is the first time the U.S. has directly targeted Chinese firms for their role in supplying unmanned aerial vehicles (UAVs) to Russia.
According to a press release by the U.S. Treasury’s Office of Foreign Assets Control, the sanctions focus on entities involved in Russia’s long-range Harpy attack UAV program, which is already being deployed in Ukraine. These drones are developed by Chinese specialists and manufactured in China before being sent to Russia.
The Role of Chinese and Russian Companies
The Chinese companies involved in the Harpy drone production include Xiamen Limbach Aircraft Engine Co., which manufactures the engines for the UAVs, and Redlepus Vector Industry Shenzhen Co Ltd, which has been supplying Russia with essential drone components like engines and electrical parts since early 2024.
On the Russian side, Izhevsk Electromechanical Plant “Kupol”, a subsidiary of Russia’s state-owned Almaz-Antey defense conglomerate, coordinates the production of these drones.
Russian businessman Artem Mykhailovych Yamshchikov, who heads the company Vector, is also sanctioned for acting as a middleman, facilitating the purchase of UAV components from China on behalf of Russian defense firms.
This is the first instance of U.S. sanctions specifically targeting Chinese companies directly involved in manufacturing drones for Russia.
The U.S. previously sanctioned Chinese firms providing resources for Russia’s military but had not focused on those supplying complete weapons systems like UAVs.
Bradley T. Smith, acting U.S. Treasury Deputy Secretary for Terrorism and Financial Intelligence, emphasized that Russia relies on foreign expertise and advanced technology to sustain its war efforts.
“We will continue to disrupt the networks that allow Russia to obtain and use these modern weapons,” Smith stated.
Consequences of the Sanctions
Under the sanctions, any property or assets related to the sanctioned entities in the U.S. or owned by U.S. persons are now blocked.
Transactions involving these companies by U.S. citizens or within the U.S. are prohibited.
Furthermore, foreign financial institutions that facilitate significant transactions with Russia’s military-industrial base are also at risk of being sanctioned.
The sanctions come amidst reports that China has been discreetly aiding Russia’s war machine.
Reuters reported in September 2024 that Chinese companies were involved in the production of the Harpy-3 UAV, a long-range drone developed for Russia. While China’s Ministry of Foreign Affairs claimed ignorance of such a project, U.S. and European intelligence sources have confirmed these activities.
