Evidence shows that Chinese-manufactured aircraft engines are being covertly transported to a state-owned drone manufacturer in Russia under the guise of “industrial cooling equipment,” in order to evade Western sanctions and assist the Russian military in expanding drone attacks on Ukraine.
According to exclusive reports from Reuters citing multiple documents and three European security officials, these disguised engine exports have significantly boosted the production capacity of the Russian arms manufacturer IEMZ Kupol, specifically for their “Garpiya-A1” long-range attack drones.
Internal documents from Kupol reveal that the company has signed contracts with the Russian Ministry of Defense to produce over 6,000 drones in 2025, a substantial increase from the 2,000 produced in 2024. As of April this year, over 1,500 drones have been delivered.
These drones are widely used to target military and civilian infrastructure within Ukraine, causing casualties and damage. Ukrainian military statistics indicate that the Russian military deploys approximately 500 Garpiya drones per month in the Ukrainian conflict.
The design of these drones bears resemblance to Iran’s Shahed suicide drones. European officials and Ukrainian intelligence sources point out that key technologies such as engines, control systems, and navigation devices heavily rely on Chinese manufacturing.
In May of this year, Ukrainian intelligence revealed that as of early 2025, 80% of the crucial electronic components in Russian drones originated from China.
Back in September 2024, Reuters had exposed that Kupol was using Chinese technology, including the L550E engine produced by Xiamen Limbach Aviation Engine Co., in manufacturing the Garpiya drones.
In response, the United States imposed sanctions in October of the same year on several implicated companies, including Xiamen Limbach and other Sino-Russian collaborative firms. The EU established a new sanction framework in the same month, paving the way for further sanctions.
To circumvent the sanctions, the Chinese supply chain swiftly shifted. Based on newly obtained invoices, internal communications from Kupol, and transport documents, after the sanctions were imposed, a Chinese company named Beijing Xichao International Technology and Trade began supplying the L550E engines to Russian parties.
These engines were initially shipped to a Russian shell company SMP-138, then transferred to another Russian entity LIBSS, before eventually reaching Kupol. According to internal documents, these engines were falsely labeled as “cooling devices” on transport documents to evade formal Chinese export controls and customs inspections.
Transport records indicate that since October 2024, major Chinese airlines including Sichuan Airlines and China Southern Airlines have been continuously air-freighting these components from Beijing to Moscow, and then transferring them to Izhevsk, Russia, the manufacturing base of Kupol.
This incident comes at a time of heightened European concerns regarding Chinese involvement in trade with Russia. The EU has yet to comment on the matter, but has imposed sanctions on Kupol since December 2022, and the United States blacklisted them in December 2023.
Ursula von der Leyen, President of the European Commission, is expected to meet with Chinese President Xi Jinping and Premier Li Keqiang on Thursday, July 25, to discuss the issue of Chinese companies supporting the Russian military-industrial complex.
According to a European official, the EU has not demanded China to sever economic ties with Russia, but will urge Beijing to enhance customs and financial reviews to prevent sensitive “dual-use products” from flowing into the Russian military industrial complex.
EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, expressed concerns to Chinese Foreign Minister Wang Yi on July 2, stating that Chinese companies’ continued cooperation with the Russian military industry poses a threat to European security.