US Sanctions Chinese Firms Supplying Iranian Drones to Russia

The U.S. Department of the Treasury has sanctioned several entities, including Oje Parvaz Mado Nafar Company and Xiamen Limbach Aircraft Engine, for their roles in a global supply chain that enables the proliferation of Iranian Shahed one-way attack drones. These drones have been deployed extensively by Russia in Ukraine, including a July 2026 attack on Kyiv that killed approximately 30 people.

Ukrainian officials identified the turbojet engines used in the Kyiv attacks as products of Telefly Telecommunications Equipment, a company based in Shenzhen, China. U.S. investigations found that while newer drone versions increasingly use Chinese technology, earlier models relied on American and European components. Chips from Texas Instruments and STMicroelectronics were diverted to Iran and Russia through Chinese shell companies and intermediaries.

Iran has expanded the reach of this technology by selling it to Syria, Ethiopia, and Venezuela. Additionally, Russia's Africa Corps has utilized these systems in Mali. The supply network involves Oje Parvaz Mado Nafar Company, a Revolutionary Guard-linked firm that developed Iranian engines and sold more than 13,000 drones to Russia.