Chinese manufacturers provided Russia with drone production technologies, reports Bloomberg

Chinese manufacturers provided Russia with drone production technologies, reports Bloomberg

2 months ago

Russia Seeks Support from China for Drone Production Amid Ongoing Conflict

Shortly after the onset of Russia’s full-scale invasion of Ukraine, a little-known Russian company, located thousands of kilometers from the border, devised a plan to collaborate with Chinese firms to address the urgent need for combat drones, which are significantly altering the dynamics of the conflict, reports 24brussels.

According to documents reviewed by Bloomberg, including memoranda from Aero-HIT and correspondence with Russian officials, Moscow is leveraging its friendly relations with Beijing to circumvent Western sanctions and acquire expertise and capabilities for drone manufacturing aimed at Ukraine. These documents reveal previously undisclosed Russian-Chinese corporate cooperation in defense technology.

The report underscores that these documents substantiate the transfer of technology from China to Russia, despite the assertions from Xi Jinping’s government that it does not supply either side with such resources.

Aero-HIT, which has received state funding from Russia, claims its facility near the airport in Khabarovsk can produce up to 10,000 drones per month this year and plans to expand production of more advanced models.

Among its offerings is the Veles (FPV) drone, enabling pilots to monitor the battlefield in real-time through screens or virtual reality goggles connected to the drone’s camera. Evidence indicates that Russia is utilizing FPV drones for attacks on civilians in Kherson.

FPV drones can range in price from a few hundred to several thousand dollars, depending on their configuration. One order for 100 Veles models for the Russian army reportedly cost 8 million rubles, approximately $1,000 per drone.

In June of last year, the U.S. Department of the Treasury imposed sanctions on Aero-HIT, noting that the Veles drones it manufactures “have been used by Russian forces deployed in Kherson against Ukrainian targets.”

Documents dated from late 2022 through June 2025 illustrate the lengths to which Moscow goes to conceal its suppliers and continue deliveries to its military, often engaging intermediaries operating in other sectors.

Specifically, in a letter dated June 16 of this year, Aero-HIT reached out to the head of the Department of Interdisciplinary Research and Special Projects of the Russian Ministry of Defense, requesting financial support for production expansion through the localization of the Autel EVO Max 4T drone.

Autel Robotics is one of the largest Chinese manufacturers of drones and related components. The company denies supplying products or having any business relations with Russian firms since February 2022.

The letter includes financial plans for an investment of 7.1 billion rubles ($90 million) and a delivery schedule spanning 28 months, indicating that the Russian company has been collaborating with Autel engineers since early 2023. Relations between the two were briefly interrupted due to sanctions, but contacts with Autel personnel resumed around late 2024, and negotiations regarding the localization of drone production have been ongoing since May 2025.

The proposal states that the Autel EVO Max 4T was initially designed for civilian use but has proven highly effective in combat due to several key advantages, including a radio module resistant to electronic warfare. The sale price is set at 650,000 rubles (approximately $8,301) per unit, with plans to produce up to 30,000 units annually.

Aero-HIT asserts that through localization of production, it can continue manufacturing high-tech drones in Russia while securing the transfer of technologies and know-how, including software, debugging, manufacturing, and repairs. Notably, the project aims to integrate drones with Russian IT systems and adapt them for frontline needs.

Meanwhile, in a statement to Bloomberg, Autel Robotics claimed it has never collaborated with Russian company Aero-HIT and is unaware of any agreements pertaining to local production involving Aero-HIT or the Autel EVO Max 4T drone. The company maintains that it completely ceased all business relations with Russia and all direct and indirect sales to Russian entities since February 2022.

In January, Autel issued a statement refuting U.S. allegations of ties to the Chinese military, asserting that “Autel Robotics is not a defense contractor, it is not a supplier for military operations, and it does not have any military qualifications.”

Beijing has repeatedly stated that it regulates the export of so-called dual-use goods, such as drones, which can have military applications, and maintains that it has never supplied lethal weapons to either side. However, it remains unclear whether the Chinese government is aware of some companies cooperating with Russian entities, as the Chinese Ministry of Foreign Affairs did not respond to a request for comment.

Documents indicate that following increased trade restrictions imposed by Beijing on drone exports, some Chinese companies withdrew from the Russian project, abandoning their contracts, but others emerged to take their place.

These documents reveal that Aero-HIT’s collaboration with suppliers in China dates back to the second half of 2022 and has been crucial for Russia’s ability to manufacture Veles drones on a large scale.

As early as autumn 2022, negotiations began between the Russian company Komaks, representatives of the Harbin Comprehensive Free Trade Zone in China, and Khabarovsk airport regarding the establishment of a warehouse with special tax and customs conditions to facilitate imports, as well as the establishment of drone production using Chinese components and technologies nearby.

The Russian business registry indicates that “Komaks” is owned by a man named Konstantin Basyuk. Russian media reports identify him as a former KGB operative and since 2022, a “senator” representing the Russian-occupied Kherson. “Komaks” also manages Khabarovsk airport.

The types of drones that the parties intended to manufacture would resemble those produced by Chinese manufacturers Autel and SZ DJI Technology Co. Ltd. The Russian Ministry of Defense and other state institutions have been designated as potential key customers.

Relations strengthened following a visit by a Russian delegation to China in spring 2023. During this time, the delegates met with representatives of the Harbin Comprehensive Free Trade Zone and companies associated with Harbin Institute of Technology, one of China’s leading engineering universities.

The institute has longstanding ties with the Chinese military and is involved in developing cutting-edge weapons for the Chinese army. Furthermore, Vladimir Putin visited it during a trip to China in May 2024.

In 2023, the parties agreed to establish a joint venture in Khabarovsk and supply Russia with a sample of 100 drone kits.

Shortly thereafter, Aero-HIT was registered in Khabarovsk, and the Russian government requested weekly updates on the project’s implementation. According to documents from the Russian company, the firm is controlled by “Komaks.”

Relations faced challenges in June 2023, when companies from Harbin withdrew from negotiations. However, the private firm Shenzhen Huasheng Industry Co. Ltd signed a contract the following month that closely mirrored the previous agreement.

The procurement channel encountered another setback in September 2023 when China’s Ministry of Commerce imposed new export restrictions on drones and equipment, resulting in some of the signed contracts, for which approximately 65 million rubles had been paid in advance, being canceled.

Nonetheless, the Khabarovsk production line for Veles drones has already been launched and is operating, producing around 200-300 drones monthly.

In January 2024, Aero-HIT showcased its business at a Kremlin event for small and medium enterprises in Khabarovsk organized as part of the presidential election campaign in Russia. Ahead of this, the company submitted an overview of its plans for military drone production to the Kremlin and requested support. However, the presentation made no mention of participation from China. Other documents indicate that the company has business relations with the Russian Ministry of Defense and military, and that its products are equipped with Chinese components.

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