Russia procures drones from China, disguising shipments as refrigerators.
In a bid to evade Western sanctions, Chinese manufacturers are covertly supplying critical engines to Russia’s state-owned drone manufacturer, IEMZ Kupol. These engines, specifically the L550E model, are being exported under the guise of "industrial refrigeration units" and are destined for military drones such as the Garpiya-A1, according to a report by Reuters.
The scheme, which has allowed IEMZ Kupol to significantly increase drone production for use in Ukraine, involves several steps. The L550E engines are manufactured by Xiamen Limbach Aviation Engine Co., a company that was sanctioned by the U.S. and EU. Beijing Xichao International Technology and Trade has stepped in as a new intermediary to facilitate the shipments.
Transportation records, invoices, and internal letters reveal that these drone engines are deliberately described as “industrial refrigeration units” in shipping documents. This labeling is intended to circumvent export controls and avoid scrutiny from both Chinese and Western authorities. Components are transported via commercial airlines such as Sichuan Airlines and China Southern Airlines, routed through Russian intermediaries before reaching IEMZ Kupol’s facilities in Izhevsk.
Front companies and intermediaries in both China and Russia are used to obscure the true nature and destination of the shipments, making it difficult to trace the military end-use. This clandestine supply chain has reportedly allowed IEMZ Kupol to sign a major contract with the Russian Defence Ministry for 6,000 Garpiya-A1 drones this year.
This smuggling operation is part of a broader pattern of Chinese companies supporting Russian military capabilities despite official denials of direct arms transfers. Ukrainian and Western intelligence have documented the movement of other dual-use components—such as flight control systems, optical equipment, and communication modules—from China to Russian defense entities, often using similar obfuscation tactics.
According to the report, this supply has already resulted in over 1,500 drones being delivered by April, more than double the production target for 2024. It is estimated that Russia is using around 500 such drones monthly. The production of over 6,000 "Harpy" drones this year is a significant increase compared to the 2,000 produced in 2024.
The Chinese government is not suspected of being suspicious of the export of goods labeled as 'cooling equipment' to Russia. This covert supply chain has created a means for the Russian military to bypass Western sanctions and maintain, even expand, its drone warfare capabilities in Ukraine. The use of false labeling and front companies in a globalized supply chain presents challenges in enforcing sanctions, especially when dual-use goods and opaque intermediaries are involved.
Technology plays a crucial role in this covert operation, as Chinese manufacturers are supplying critical engines for Russia's state-owned drone manufacturer, IEMZ Kupol, under the guise of industrial refrigeration units. Moreover, these engines, specifically the L550E model, are allegedly being used in military drones like the Garpiya-A1, suggesting technology is essential for evading Western sanctions and enhancing Russia's drone warfare capabilities.
