The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is targeting three entities and one individual for their involvement in the development and production of Russia’s Garpiya series long-range attack unmanned aerial vehicle (UAV).

The U.S. Department of the Treasury reported on this.

The Garpiya has been deployed by Russia in its brutal war against Ukraine, destroying critical infrastructure.

Designed and developed by the People’s Republic of China (PRC)-based experts, the Garpiya is produced at the PRC-based factories in collaboration with the Russian defense firms before transferring the drones to Russia.

Although the United States has previously imposed sanctions on the Chinese companies that provide critical resources for the Russian military-industrial base. These are the first US sanctions imposed on the Chinese companies that directly develop and produce UAVs for Russia.

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

Sanctions

U.S.-designated Joint Stock Company Izhevsk Electromechanical Plant Kupol (AO IEMZ Kupol), a subsidiary of U.S.-designated Russian state-owned weapons company JSC Aerospace Defense Concern Almaz-Antey (Almaz-Antey), coordinates the production of the Garpiya series UAVs at the factories in China before transferring the weapons to Russia.

Russian national Artem Mikhailovich Yamshchikov is the SEO and beneficial owner of TSK Vektor, which assists with procurement on behalf of AO IEMZ Kupol and Almaz-Antey in the development and production effort of one-way attack UAVs. Yamshikov has directed the procurement activities on behalf of TSK Vektor, including the procurement of sensitive UAV components for the Garpiya series one-way attack UAV program. Yamshikov also directs and owns Russia-based Limited Liability Company Trading House Vector (TD Vector).

Xiamen Limbach Aircraft Engine Co., Ltd. (Limbach), based in the PRC, produces the L550E engine for implementation into the Garpiya. Redlepus Vector Industry Shenzhen Co Ltd (Redlepus), which also operates out of the PRC, has worked in collaboration with the U.S.-designated Russian defense firm TSK Vektor OOO (TSK Vektor), which serves as an intermediary between AO IEMZ Kupol and the PRC-based suppliers for the Russia’s Garpiya project. In addition, TSK Vektor has imported numerous shipments from Redlepus into Russia since the beginning of 2024, including electronic and mechanical components with the UAV applications such as aircraft engines, parts of automatic data processing machines, and electrical components. Redlepus was previously involved in an effort with AO IEMZ Kupol and TSK Vektor to establish a joint drone research and production center.

The new sanctions apply to Redlepus, Xiamen, Vector and Artem Mikhailovich Yamshchikov.

As a result of today’s action, all property and interests in property of the persons above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt.

In addition, the foreign financial institutions that conduct or facilitate significant transactions or provide any service involving the Russia’s military-industrial base run the risk of being sanctioned by OFAC.

As previously reported, information about the Chinese production of the Garpiya-3 UAV appeared at the end of September 2024.

Reuters reported on this with reference to two sources from a European intelligence agency and documents reviewed by journalists.

The China’s foreign ministry told Reuters it had been unaware of such a project, adding that the country had strict controls on the drone export.