US Sanctions Chinese Entities Over Drone Development for Russia

The United States sanctioned two Chinese companies on Thursday over their role in Russia’s secret drone project in China.
It’s the first time the United States has sanctioned Chinese entities responsible for the development and manufacture of full weapons systems in partnership with Russian firms.
Also sanctioned were Russian national Artem Mikhailovich Yamshchikov and his company, Limited Liability Company Trading House Vector, for Yamshchikov‘s role in the project, the Treasury said in a press release.
It said that any asset they have in the United States or that is controlled by U.S. persons would be frozen and reported to the Treasury’s Office of Foreign Assets Control, and U.S. persons are banned from providing or receiving funds, goods, or services to or from the sanctioned entities and individuals.
Any entities the sanctioned entities own 50 percent or more of are also subject to the measures.
The Garpiya series drones have been deployed by Russia in Ukraine, destroying critical infrastructure and causing mass casualties, the Treasury said.
Production of the drones in Chinese factories was coordinated by Joint Stock Company Izhevsk Electromechanical Plant Kupol, a subsidiary of Russian state-owned weapons company JSC Aerospace Defense Concern Almaz-Antey. Both were previously sanctioned by the United States.
According to documents seen by Reuters, the model can travel about 1,200 miles with a maximum payload of 110 pounds. Kupol had told the Russian defense ministry that it could mass-produce drones in China and use them in Russia’s so-called special military operation in Ukraine.
At the time, the White House expressed concern over the report but noted that there was no evidence to suggest the Chinese regime’s awareness or direct involvement in providing lethal weapons to Russia—an act that would make Beijing a target of international sanctions.
Chinese manufacturers have long been accused of selling parts, many of which are dual-use goods, to Russia’s military.
In a statement, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith said, “Russia increasingly relies on the expertise of foreign professionals and the import of sophisticated technologies to sustain its weapons program and advance its military campaign against Ukraine.”
Smith said the Treasury will “continue to disrupt the networks that enable Russia’s acquisition and use of these advanced weapons.”
Beijing has repeatedly denied that China or Chinese companies have supplied Russia with weapons for use in Ukraine, saying the country remains neutral.
The ministry also said that there was no international restriction on China’s trade with Russia, responding to a Reuters report that Kupol had started producing the Garpiya-A1 long-range military drone in Russia using Chinese engines and parts.