The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on three entities and one individual involved in the production of Russia’s Garpiya series long-range attack unmanned aerial vehicles (UAVs). These drones, which have been used in Russia’s ongoing conflict with Ukraine, are designed by experts based in the People’s Republic of China (PRC) and manufactured at factories in China before being transferred to Russia.
These sanctions mark the first time the United States has targeted PRC entities directly involved in developing complete weapons systems in collaboration with Russian firms. “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,” stated Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence.
The sanctions were enacted under Executive Order 14024, which addresses harmful foreign activities by Russia. Among those designated is Joint Stock Company Izhevsk Electromechanical Plant Kupol (AO IEMZ Kupol), a subsidiary of Russian state-owned company JSC Aerospace Defense Concern Almaz-Antey. The company coordinates UAV production in China, working with Xiamen Limbach Aircraft Engine Co., Ltd. (Limbach) and Redlepus Vector Industry Shenzhen Co Ltd (Redlepus).
Russian national Artem Mikhailovich Yamshchikov, General Director and beneficial owner of TSK Vektor OOO, was also sanctioned. He is involved in procuring sensitive UAV components for AO IEMZ Kupol’s Garpiya project.
All property and interests belonging to these individuals and entities within U.S. jurisdiction are now blocked. U.S. persons are prohibited from engaging in transactions involving these parties unless authorized by OFAC. Additionally, non-U.S. persons are warned against causing U.S. persons to violate these sanctions.
Foreign financial institutions that facilitate significant transactions involving Russia’s military-industrial base risk being sanctioned as well.
The goal of these sanctions is not punitive but aims to encourage positive behavioral changes from those affected.
