Key facts
- Most companies involved in Russian Molniya drone production are not subject to Western sanctions, research shows.
- Component suppliers for Russian drones also largely remain unsanctioned.
- Russian drone manufacturers rebrand or establish new companies to bypass sanctions, according to Molfar analysts.
- IZHBS LLC, a producer of Supercam drones, plans a tenfold increase in production.
- Ukrainian intelligence agency GUR identified 21 Russian drone makers, with over half unsanctioned.
- GUR also provided data on 31 companies producing universal planning and correction modules (UMPK) for Russian strikes.
A significant portion of Russian companies involved in the development and production of drones used in the conflict with Ukraine remain unsanctioned, according to research from Ukrainian entities. The Centre for Defence Strategies found that the majority of firms producing Molniya drones and their component suppliers are not yet subject to Western sanctions. Similarly, the Molfar Intelligence Institute reported that Russia is able to maintain uninterrupted drone production by exploiting loopholes in sanctions regimes. These loopholes include countries imposing restrictions only on company names without specific identifiers like tax identification numbers, allowing manufacturers to rebrand or establish new entities to circumvent sanctions.
Russian media reported in 2024 that IZHBS LLC, identified as a producer of Supercam drones, intended to increase its production tenfold. Rostec, a shareholder in the Unmanned Systems group, announced in July 2024 the construction of a new production facility spanning over 30,000 square meters. The Ukrainian intelligence agency GUR has also identified 21 Russian drone makers, stating that more than half are still not sanctioned by any country in the coalition, which allows Russia to obtain technology, components, and financing without hindrance. GUR previously released data on 31 companies involved in producing universal planning and correction modules (UMPK), which Russia uses extensively for strikes on Ukraine.