Monday, July 3, 2023

Special report: Russia buying civilian drones from China for war effort

Moscow relying on 'dual use' equipment and third-party exporters


The DJI Mavic 3 Cine Drone shown here could be used in Ukraine to gather intelligence on the battlefield, according to a Japanese expert. (Source photos by Getty Images and AP)

Nikkei staff writers and JACOB FROMER, Contributing writer

July 1, 2023 17:59 JST

 

Russia has for months been importing drones from Chinese companies explicitly for use in its invasion of Ukraine, despite denials from Beijing that such equipment is being deployed in the war, a Nikkei Asia investigation has found.

Between December 2022 and April 2023, Russian companies imported at least 37 Chinese unmanned aerial vehicles worth around $103,000 that were designated in customs clearance records as being "for use in the special military operation," the Russian government's name for the Ukraine war. 

Since the beginning of the invasion 16 months ago, Beijing has repeatedly denied providing weapons to Moscow for use in the invasion. And while previous reporting has shown that Russia stepped up its imports of Chinese drones after the war began, Beijing has denied that China is exporting drones to the battlefields of Ukraine.

"China calls on all relevant parties to work together to strengthen controls, prevent all types of drones from being used on battlefields in conflict areas, and jointly promote international peace and regional stability," a spokesperson for China's Ministry of Commerce said in April.

But Nikkei's reporting shows that for months, Russian companies have been quietly filling out customs paperwork for the import of drones, including machines manufactured by U.S.-sanctioned DJI, China's biggest drone maker, marking them for use in the war. It is unclear whether the Chinese companies or government is aware of Russia's customs records regarding the drones.

Nikkei obtained the Russian customs records from multiple sources, including Indian companies Exim Trade Data and Export Genius, and analyzed shipments from China to Russia.

The label "for use in the special military operation" began appearing in customs records late last year, after Russian President Vladimir Putin ordered his government to increase the supply of goods needed for the war.

In November, the Federal Customs Service of Russia said on its official website that the agency would expedite and simplify the release of "dual-use goods and civilian products intended to support the combat and daily activities of Russian military units."

Drones "should be a must-have for combat units, platoons, companies and battalions," Putin told defense officials in December, according to a Kremlin transcript. Military analysts say Russia has been using drones to surveil and attack Ukraine.

Nikkei found that Russian companies also paid Chinese counterparts more than $1.2 million for 22 devices that detect and jam drones, and another $36,077 for 10 "rugged" portable personal computers. All were designated in customs records for use in the war.

In one case, on Feb. 1, Russian information technology company Status Compliances imported three drones, with takeoff weights of between 25 kg and 150 kg, from Shenzhen Kexin Smart Development, an electronic devices manufacturer in Shenzhen, for $28,292. They were made by Shenzhen Jarch Electromechanical Technology, according to Exim Trade Data.

The drones were described in the records as civilian models, but an additional note in the customs forms says they were being imported for the "special military operation carried out by the armed forces of the Russian Federation."

"Large drones weighing over 25 kg could be used for reconnaissance, and if modified, could be used for attack," said professor Tomoyuki Furutani of Keio University, an expert on unmanned aircraft. "They could be made into a self-destruct type, loaded with firepower to attack." He added that smaller drones like DJI's MAVIC 3 could be used to gather intelligence rather than attack.

Customs records show that in January and March, 34 drones manufactured by DJI, worth $75,100, were shipped to Russia, each with a takeoff weight of between 250 grams and 7 kg. Twenty-four were listed as DJI's Mavic 3 model.

In a statement to Nikkei, DJI said the company could not verify the customs records involving DJI this year and denied that the listed companies were DJI dealers. The company said that DJI, as well as its subsidiaries, had "voluntarily stopped all shipments to and operations in Russia and Ukraine" on April 26 last year, but added that the company "cannot control how our products are being used once they leave our management."

"We have taken all steps under our control to emphasize that our products should not be used in combat, to cause harm, or be modified into weapons," the company said.

When asked about the drones that the Russia customs data showed it had imported, Status Compliances initially told Nikkei that it was not aware of any such purchases. When Nikkei showed the company detailed transaction information, the company denied that it had taken place.

Status Compliances says on its website that it develops information security systems for companies.

The manufacturer listed in the customs records, Shenzhen Jarch Electromechanical Technology, says on its website that it makes electrical slip rings, a device used in the transmission of electricity or electrical signals, but does not mention drones. When asked for comment by a Nikkei reporter, Shenzhen Jarch Electromechanical Technology denied that it exports drones to Russia.

Shenzhen Kexin Smart Development, the Chinese seller listed in the customs records, did not respond to multiple inquiries.

Two Hong Kong-based companies, APIO Group and Shenwei Technology HK, were also listed as selling drones and drone suppressors, respectively, to Russia for the war, but neither of the two companies appears to have a physical presence in the city.

Their registered offices use addresses of company formation agents, which can offer one address for thousands of companies to use for registration simultaneously -- common practice in Hong Kong, where it is easy and inexpensive for businesses to incorporate.

APIO Group and Shenwei Technology did not respond to Nikkei's request for comment.

Damien Spleeters, deputy director at Operations at Conflict Armament Research, a U.K.-based investigative organization, said Russia has been relying on civilian goods and components in their weapon systems since before the February 2022 invasion.

"It should not be a surprise that they continue to do so, since they lack the domestic capability to effectively produce these goods and components themselves," he said.

Nikkei also requested interviews with the Russian government and the Chinese Embassy in Japan about the drones, but received no response.

From March 2022 to May 2023, China exported at least 30,000 drones to Russia, worth over $32 million, according to China's official customs data.

Russia's import records, however, did not mention the phrase "special military operation" until December 2022.

Multiple lawyers and other experts familiar with Russian customs practices speculated that importers may be declaring that the drones are being used for the war in order to speed them through the customs process.

Experts tracking the war say that Russia has been plagued by logistical problems and supply shortages since the beginning of the invasion. Russian President Vladimir Putin has spoken publicly about the need for more materiel.

On Oct. 25, Putin met with the head of Russia's Federal Customs Service, Vladimir Bulavin, who told Putin that the customs agency would "provide every possible assistance to our armed forces and defense industry companies," according to a transcript from the Kremlin.

The first mention of the "special military operation" in Russian customs records came on Dec. 21 -- a $296,550 shipment of five "passive scanners" that detect drones, and a $92,115 shipment of three jammers that block communications between a drone and its remote controller.

U.S. Secretary of State Antony Blinken said during his visit to Beijing last month that the U.S. has "ongoing concerns" that Chinese companies may be providing technology that Russia can use in its aggression against Ukraine and said he had urged his Chinese counterparts to be vigilant. He added, however, that he had seen no evidence that Beijing is providing lethal assistance to Moscow.

"If they [China] don't intend to be a part of Russia's war, they shouldn't sell the drones," said Kazuto Suzuki, a University of Tokyo professor who previously served on the Panel of Experts for the U.N. Security Council's Iran Sanctions Committee.

"The fact that they are putting them out there knowing Russia's intentions, from an ethical standpoint, is an act of not wanting to stop the war, and facilitating it," Suzuki said.

https://asia.nikkei.com/Politics/Ukraine-war/Special-report-Russia-buying-civilian-drones-from-China-for-war-effort


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