this post was submitted on 08 Jul 2025
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Archived version

TLDR:

  • Aero-HIT, a Russian company, partnered with Chinese firms to build drones for the Russian military, according to documents reviewed by Bloomberg.
  • The documents show Aero-HIT has been working with Autel engineers since early 2023 to localize production of the Autel EVO Max 4T drone, which was originally designed for civilian use but has proven effective in combat.
  • Aero-HIT claims its production plant in Khabarovsk will have the capacity to produce as many as 10,000 drones per month this year, and the company has grown rapidly into one of Russia's main drone suppliers for military operations in Ukraine.

Soon after President Vladimir Putin launched his full-scale war on Ukraine, a little-known Russian company thousands of miles away hatched a plan to partner with Chinese firms and solve one of the most urgent challenges faced by the invading army — the need for combat drones that were radically reshaping the battlefield.

Documents reviewed by Bloomberg — including memos from the company, Aero-HIT, as well as correspondence with Russian government officials — offer unprecedented insight into how Moscow capitalized on its friendly ties with Beijing to skirt Western sanctions and acquire the know-how and capability to build drones to attack Ukraine. They lay out in detail a previously unreported case study of Russian-Chinese corporate collaboration on defense technology.

Taken together, the documents show how sensitive technologies can move from China to Russia even if President Xi Jinping's government says it's not supplying either side.

Aero-HIT, which has received Russian state funding, claims its production plant close to the airport in the far eastern city of Khabarovsk will have the capacity to turn out as many as 10,000 drones per month this year and it’s planning to expand production further into more advanced models. It has grown rapidly into one of Russia’s main drone suppliers for military operations in Kherson, the partly occupied region of Ukraine that Putin insists must be handed over fully to Moscow’s control as part of any deal to end the war. Its products include the Veles, a First-Person View (FPV) drone that allows pilots to monitor the battlefield in real time via a screen or virtual-reality goggles linked to the quadcopter’s camera. FPV drones have become a crucial weapon for both sides in the war, and multiple reports suggest Russia has deployed them to deliberately target and hunt down civilians in Kherson city that Ukraine successfully retook in late 2022.

...

Last June, the US Treasury sanctioned Aero-HIT, stating that the Veles drones it makes “have been used by Russian forces based in Kherson against Ukrainian targets.” ...

The documents, which date from late 2022 through to June 2025, show the extent to which Moscow goes to mask its suppliers and deliver equipment to its military, often by using intermediaries that operate in other sectors like airline catering, agricultural supplies and seafood transportation services. In a letter dated June 16 this year, Aero-HIT wrote to the head of the department of interdisciplinary research and special projects at Moscow’s Ministry of Defense requesting financial support to expand its output by localizing the production of the Autel EVO Max 4T drone. Autel Robotics is one of China’s major manufacturers of drones and drone parts. It denies supplying or having any business relationships with Russian firms as of February 2022.

The letter, which contains financial plans for what would be a 7.1 billion ruble ($90 million) investment and a schedule of proposed deliverables over 28 months, states that the Russian company has been cooperating with Autel engineers since early 2023. The relationship between the two firms was briefly interrupted due to sanctions, but contacts with Autel personnel were re-established around the end of 2024 and the parties have been negotiating localizing production for the drone since May 2025, the letter states.

The proposal says the Autel EVO Max 4T was originally designed for civilian use but has proven highly effective in combat due to several key advantages such as a radio module resistant to electronic warfare. The sale price would be 650,000 rubles apiece, VAT included, and the plan foresees making as many as 30,000 units per year, according to details outlined in the proposal.

By localizing production of that model, Aero-HIT says it would be able to bolster high-tech drone manufacturing in Russia and gain the transfer of technologies and know-how, including firmware, debugging, production, and repair. Crucially, the project would integrate the drones with domestic IT systems and adapt them to frontline needs.

...

The origins of Aero-HIT and its relationship with suppliers in China date back to the second half of 2022 — and have been crucial to Russia’s ability to manufacture Veles drones at scale, the documents show. In the fall of 2022, discussions began between a Russian company called Komax, representatives of the Harbin Comprehensive Bonded Zone in China, and Khabarovsk Airport — which lies around 20 miles from the Chinese border — to build a warehouse with special tax and customs arrangements to facilitate imports, as well as establish the production of drones using Chinese parts and technologies nearby. Russia’s business registry shows Komax is owned by an individual named Konstantin Basyuk. He is a former KGB operative, according to Russian media reports, and since 2022 a senator for Russian-occupied Kherson. Basyuk was sanctioned by the European Union in 2023. Komax also manages Khabarovsk airport.

...

The relationship stepped up when, between April 28 and May 3, 2023, a Russian delegation traveled to China to meet with representatives of the Harbin Comprehensive Bonded Zone and companies linked to the Harbin Institute of Technology (HIT), one of China’s top engineering universities and particularly prestigious in the fields of astronautics and defense-related technologies.

...

The parties agreed to set up a joint venture in Khabarovsk and that a sample of 100 drone kits would be delivered to Russia. During the same trip, the Russian delegation also visited the headquarters of Autel Robotics and a drone factory in Shenzhen, according to a Russian memo.

Later that month, on May 22, Russian and Chinese representatives of the joint venture met with Putin’s special envoy for the Far East, Yury Trutnev, on the sidelines of the China-Russia Business Forum in Shanghai. Trutnev recognized the project as a priority and promised to help it receive permits from Russia’s customs service to allow for tax-free imports, another memo indicates. A readout on the website of the Russian government confirms that Trutnev met with Chinese executives “to discuss the development of cooperation between Russia and China in the Russian Far East.”

...

In January 2024, Aero-HIT presented its business at a Kremlin event for small and medium enterprises in Khabarovsk organized as part of Russia’s presidential election campaign that was taking place at the time. Ahead of the event, the company sent the Kremlin an overview of its plans to produce drones for military purposes under the name Veles and pitched for support. The pitch made no mention of Chinese involvement and it is not known whether that support was received. However, other documents indicate that the company has business ties with the Russian Defense Ministry and military — and its product, packed with Chinese components, was making its way onto the battlefield to be deployed against Ukraine.

Document suggests that it is likely that ... Aero-HIT was procuring Autel parts and components from China via intermediaries. One such company named in one of the documents is Renovatsio-Invest, a firm sanctioned by the US in June 2024 for procuring Chinese-manufactured drones on behalf of Aero-HIT. ... Bloomberg is unable to confirm whether the drones were delivered to the 76th Guards Air Assault Division in Pskov, but Veles drones — easy to produce at scale as long as Chinese components remain available — continue to rain down on Ukraine’s cities each day.

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[–] [email protected] 3 points 21 hours ago

Great. Now what? Nobodies gonna put sanctions on China over this, although it gives Russia basically unlimited supply. China already stated they don't want Russia to lose, so they're not gonna stop by themselves.