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Chinese drone companies targeted by latest US sanctions

This article was originally published by Radio Free Europe/Radio Liberty and is reprinted with permission.

The United States on October 17 imposed sanctions on two Chinese companies and an affiliated Russian company involved in making and shipping drones that Russia has used in its full-scale war in Ukraine.

The two Chinese companies designated by the U.S. Treasury Department are Xiamen Limbach Aircraft Engine Company and the Redlepus Vector Industry Shenzhen.

Xiamen Limbach Aircraft Engine Company makes an engine that powers Russia’s Garpiya series long-range unmanned aerial vehicles, the U.S. Treasury Department said. Redlepus Vector Industry Shenzhen is involved in shipping the attack drones, the department said in a statement.

A Russian national and a Russian company affiliated with the two Chinese companies also were designated in the sanctions announced on October 17. They are Artem Yamshchikov, general director and beneficial owner of TSK Vektor, which serves as an intermediary between a previously designated Russian company and the China-based suppliers for Russia’s Garpiya project.

Yamshikov also directs and owns Limited Liability Company Trading House Vector, the Russian affiliate that was designated for sanctions in the October 17 announcement.

The Treasury Department said the new sanctions are the first U.S. sanctions imposed on Chinese entities that produce complete weapons systems in partnership with Russian firms. Previously imposed sanctions on Chinese entities have targeted those that provided components critical to Russia’s military-industrial base.

“Russia increasingly relies on the expertise of foreign professionals and the import of sophisticated technologies to sustain its weapons program and advance its military campaign against Ukraine,” said Acting Undersecretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “We will continue to disrupt the networks that enable Russia’s acquisition and use of these advanced weapons.”

The Garpiya has been deployed by Russia in its brutal war against Ukraine, destroying critical infrastructure and causing mass casualties, the Treasury Department said.

The drone was designed and developed by China-based experts and is produced at factories within China in collaboration with Russian defense firms before they are transferred to Russia for use against Ukraine, according to the department.

The sanctions freeze any assets held by the individuals and companies in U.S. jurisdiction and bar U.S. persons from conducting business with them.

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