Investigation: Russia Increases Number of Front Companies to Import Components for Shahed

Investigation: Russia Increases Number of Front Companies to Import Components for Shahed
Shahed loitering munitions assembly shop in Russia, 2024. Photo credits: SolovievLive

The Russians have increased the number of front companies used to import foreign components for the production of Shahed kamikaze drones.

This is detailed in an investigation by Under the Radar.

The authors of the investigation focused particularly on Silver LLC, which is identified as one of the key intermediaries in the supply chain for the production of Russian drones.

This entity helps procure equipment and electronics for companies involved in the production of Shahed drones.

According to the investigation, the company acts as an intermediary between Russian defense entities and foreign suppliers.

Through a network of companies in third countries, the entity procured electronics, industrial equipment, sensors, navigation components, and other dual-use goods. The majority of these purchases go through China, Turkey, and Central Asian countries.

China is the most significant partner here, as, according to documents, several Chinese companies, such as Harbin Bin-Au Technology Development, Shucheng Wanli Trading, and Skyfom Import and Export Trading, export goods to Silver LLC.

This allows the Russians to circumvent sanctions, and identifying such front companies is becoming increasingly difficult for the international community due to the complex network of contractors.

As investigators note, similar mechanisms have previously been documented in the activities of Drake LLC and Alabuga Development. It is also essential that both civilian and dual-use components are used for the drones.

Silver LLC company registry. Source: Rusprofile/Under the Radar.

Timur Shagivaliev, CEO of the Alabuga Development Special Economic Zone, plays a key role in the development of drone production at Alabuga. He is the one publicly overseeing projects to localize the production of Shahed drones and develop the infrastructure for mass drone production in Russia.

Ildar Shagautdinov and Rustem Nuriev also appear in documents and logistics diagrams. They are linked to coordinating shipments and managing a network of intermediaries. According to journalists, they were involved in procuring equipment through third countries and organizing logistics routes to circumvent U.S. and EU sanctions.

Earlier, Militarnyi reported that Chinese components had become the most numerous among foreign electronics in Russian Shahed-type strike UAVs, displacing American parts: their share rose to 65%.

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