China has introduced new restrictions on the export of dual-use goods to Russia starting on September 1, a notable shift given China’s role as a key supplier of such items since 2022. By bypassing international sanctions and prioritizing its own domestic interests, Russia has maintained access to Chinese technologies to replace Western products for a third consecutive year. Among these are small aviation engines, particularly the DLE30 engines produced by MILE NAO XIANG TECHNOLOGY CO. LTD, which are used in the production of Russian UAVs.
More on this story: China: Supplying Components for Russian Drones in the War Against Ukraine
Since at least August 2023, China has been supplying these DLE30 engines to Russia. On the Russian side, companies like Uniservice, SMT-iLogic, and Unicom have been handling procurement, while intermediaries from China include CHIP SPACE ELECTRONICS CO. LTD, LUCHENGTECH CO. LTD, and M. AND S. TRADING.
Although the DLE30 engines are not explicitly labeled in import documents, the technical descriptions align precisely with their specifications, raising questions about how sanctions are being circumvented. Notably, Uniservice and SMT-iLogic are under U.S. and EU sanctions, while Unicom has avoided sanctions entirely. All Chinese intermediaries, however, are sanctioned by the U.S.
Similarly, DLE55 engines have been supplied since spring 2023 through Russian firms SNK Trade and ObltransTerminal, with the help of Chinese intermediaries like Keno Pharma Ltd and Zhejiang Air Sea Transport Inc. In some cases, the product descriptions openly identified the engine model. None of these companies are under sanctions, despite the dual-use nature of the goods.
Deliveries of DLE60 engines in 2023 and 2024 were facilitated by Chinese firms such as Sun Hu and Shenzhen Bewin International Logistics Co. Ltd, with Russian recipients including Skvala, Altrabeta, Saturn EK, and Vest. Notably, Skvala received a shipment of DLE60 engines in January 2024, while another Chinese firm openly listed the engine model in its documentation. While Altrabeta and Saturn EK are under sanctions, most other involved companies are not.
In January 2023, the first batch of DLE120 engines was shipped to Russia, with Chinese intermediary DEQING INDUSTRIAL SANYA CO. LTD facilitating the delivery to Russian firm Transkomplekt. Additional DLE120 engines were supplied by HMK Trading Company Ltd to Russian company SITEM, which is under U.S. sanctions.
These examples highlight the persistent and stable commercial links between Russian and Chinese companies in the supply chain of engines for UAVs.
Chinese firms:
-CHIP SPACE ELECTRONICS CO. LTD;
-LUCHENGTECH СО LTD;
-M. AND S. TRADING;
-SHENZHEN BEWIN INTERNATIONAL LOGISTICS CO. LTD ON ORDER ALLPARTS TRADING CO LIMITED;
-MANZHOULI SIBO TRADE CO. LTD;
-KENO PHARMA LTD;
-ZHEJIANG AIR SEA TRANSPORT INC;
-DEQING INDUSTRIAL САНИЯ CO. LTD;
-HMK TRADING COMPANY LTD. MILE NAO XIANG TECHNOLOGY CO. LTD, CHIP SPACE ELECTRONICS CO. LTD, LUCHENGTECH CO. LTD, and others play critical roles in these transactions.
Evidence indicates that Russia has been using DLE-series engines in its UAVs, with the DLE60 powering the Geran-3 drone and the DLE120 used in the Italmas and Supercam S350 models. Russia has relied heavily on UAVs for targeting and striking civilian infrastructure, contributing to significant civilian casualties in Ukraine. It is estimated that Russia has launched tens of thousands of UAVs since the start of the conflict in 2022.
Chinese companies involved in these deliveries appear to be exclusively focused on supplying Russia, which suggests that these exports were made with the knowledge, if not the endorsement, of Chinese authorities. Despite Western sanctions, China has taken no visible steps to curtail these shipments.
Russia has extensively deployed UAVs to target and strike civilian infrastructure in Ukraine, resulting in the deaths of numerous civilians. Since the conflict began in 2022, the number of UAVs launched by Russia has reached into the tens of thousands.
It is important to note that all the Chinese companies mentioned earlier have supplied goods exclusively to Russia, indicating that these entities were likely established for this specific purpose. Given China’s centralized control over exports, it is highly improbable that such shipments of equipment, which fall under Western sanctions, could occur without the knowledge and approval of Chinese authorities. However, China has made no discernible effort to halt these deliveries.
