Manufacturer of Russian Orion UAVs on Verge of Bankruptcy

The Russian joint-stock company Kronstadt, one of the key manufacturers of military drones, including the Orion, is on the brink of bankruptcy.

This was reported by The Moscow Times, citing CNews.

This situation is attributed to losses and debts resulting from international sanctions and expensive loans.

In late March, SKB Elektronnogo Priborostroeniya LLC filed a lawsuit to declare the company bankrupt due to its failure to comply with a court order to collect a debt.

As of the end of 2025, the losses of the company’s owner — DK Kronstadt LLC — amounted to 4.6 billion rubles.

Over the past year, 154 lawsuits have been filed against the drone manufacturer for a total amount of 2.6 billion rubles.

All claims relate to improper fulfillment of obligations under supply contracts. Among the plaintiffs are a number of enterprises in the Russian defense industry, including Akvamash, Electromashinostroitelny Zavod, and the Arsenal semiconductor device plant.

Similar claims against the company began pouring in last summer. By August 2025, 40 lawsuits had been filed against Kronstadt for a total of 626.3 million rubles.

Prior to this, in August 2023, the Russian drone manufacturer had already been targeted for bankruptcy by the company Turboget Micro.

The manufacturer itself attributes its losses to provisions for financial investments and high interest rates on loans, which are linked to the imposition of international sanctions due to Russia’s war against Ukraine. Additionally, market experts attribute the pre-bankruptcy situation to the loss of a strategic investor in 2022.

In addition to drone production, Kronstadt JSC specializes in the development of navigation software and hardware, ground control stations, and integrated solutions for unmanned aviation and the Russian defense industry.

In May 2025, Ukrainian drones struck the Orion drone production facility in Dubna, near Moscow. According to the Defence Intelligence of Ukraine, this is also where the new Russian S8000 Banderol cruise missile is manufactured.

Currently, Kronstadt JSC is subject to sanctions imposed by Australia, the United States, the European Union, the United Kingdom, Japan, Ukraine, Switzerland, and New Zealand.