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Russian startup sells 1,000 UAVs while evading Western sanctions

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Russia boasts: FPV drone operator has killed 300+ fighters
Photo by Sergey Lantyukhov

Located in the Republic of Bashkortostan in southeastern Russia, IRT shows how Russian companies are adapting to an economy driven by war due to the Ukraine invasion. Even though they make drones for the military, IRT has not yet faced Western sanctions. These drones, originally for farms and energy companies, are now promoted as tools for surveillance and attacks, showing a clear change in marketing. 

IRT’s products include “kamikaze” drones, which are cheap, disposable units with explosives to hit targets accurately. They also offer advanced drones that can fly for up to 20 hours and cover more than 1,600 kilometers, taking high-quality images. Initially meant for inspecting energy pipelines, these high-tech drones are now used in combat.

Russia tests ground FPV destroying 'Dragon's Teeth' obstacles
Photo credit: Izvestia

The conflict in Ukraine has led Russia to find new ways to avoid Western sanctions. These sanctions aim to block Russian companies from getting vital components. However, Russia is using alternative supply channels, especially through China, and setting up “front” companies in countries like the United Arab Emirates, Turkey, and some Central Asian nations.

Interestingly, the IRT website doesn’t mention the military uses of their drones. Instead, they highlight their drones as mainly for civilian use. However, the company’s presence at many military exhibitions hints at a dual marketing strategy.

While IRT has not answered questions about its role in the defense industry, experts believe their technology can be used for both civilian and military purposes. Although first built for civilian use, these drones have clear military applications.

Ukraine produces 50,000 FPV drones per month, Russia 300,000
Photo credit: Hero of Ukraine

Robert Shaw, the director at the California Center for Arms and Sanctions Research, points out that IRT’s “kamikaze” models are good examples of this dual-use technology, clearly intended for military use.

Founded in September 2021, IRT is a leader in the Russian drone market. The company focuses on young engineering talent and employs about 20 people. Although private, IRT has received many government grants and contracts, including some from Bashkortostan. Their close relationship with the authorities has led to new programs to boost UAV production, such as new research centers and factories.

As the conflict in Ukraine intensifies and international ties fray, companies like IRT are continuing to play a crucial role in supplying technology to Russia’s military efforts, even as global authorities strive to curtail the influx of critical components to the nation.

Ukraine produces 50,000 FPV drones per month, Russia 300,000
Photo credit: Pinterest

Although IRT’s long-term plans remain uncertain, the company may soon face a dilemma: whether to persist in developing military drones or revert to its original civilian-focused applications.

Should the war come to an end, the market landscape will inevitably shift, potentially reducing demand for military drones. In such a scenario, IRT may seek to rebrand and concentrate on sectors like agriculture, energy, and infrastructure control while keeping their technology adaptable for various conditions. 

An alternative scenario could see the company leveraging its acquired expertise and government subsidies to emerge as a leading figure in Russia’s drone technology sector, irrespective of ongoing military conflicts. Additionally, Russia’s long-term economic strategy might continue to emphasize defense technology, maintaining the militarization of the drone sector.

Russia made a Drone Rapid Response Unit training 150 FPV operators
Photo credit: Yandex

IRT’s local competitors within Russia, who also operate in the drone industry, are likely striving to capitalize on similar government subsidies and contracts amid the sector’s militarization. These companies might attempt to outpace IRT by creating more advanced models or offering lower prices to secure contracts from the Russian government and military. However, IRT’s accomplishments could intensify domestic competition and attract further investment into this sector.

On the international stage, IRT’s competitors, particularly those in Western nations, are probably observing with concern as the company seems to evade sanctions and sustain production. These rivals may lobby their governments to tighten export controls on technology to restrict IRT’s access to essential components. Concurrently, Western firms engaged in developing both military and civilian drones might enhance their products and services to stay competitive in the global market.

Since the outbreak of war in Ukraine in 2022, the manufacturing of kamikaze drones and FPV [First-Person View] drones has surged significantly. These drones have become pivotal in modern military operations, with both Russia and Ukraine employing them for reconnaissance, attacks, and the destruction of enemy infrastructure.

Watch: 20 Russian workshops produce thousands of FPV drones per day
Video screenshot

With the onset of the conflict, Russia has ramped up mass production of kamikaze drones, relying on both domestic manufacturers and external partners like Iran. The Shahed-136 drone, notorious for its targeted strikes on Ukrainian infrastructure, is being produced in large numbers. Russia is also advancing its own models, such as the Lancet, designed specifically for striking military equipment and installations.

Russian President Vladimir Putin has unveiled an ambitious strategy aimed at advancing the development and production of unmanned aircraft. The plan is comprehensive, seeking to establish 48 research and production centers across Russia by 2030, with the goal of enhancing the country’s capabilities in this field. 

“The design, testing, and mass production of unmanned aircraft will be concentrated in specialized research and production centers. Our goal is to set up 48 such centers in various regions by 2030,” Putin stated at a Military-Industrial Commission meeting dedicated to UAV development.

Watch: 20 Russian workshops produce thousands of FPV drones per day
Video Screenshot

Since the conflict in Ukraine escalated in 2022, the production of military unmanned aerial vehicles (UAVs) in Russia has accelerated significantly. In 2023 alone, Russia delivered approximately 140,000 drones to its military. Projections for 2024 are even more ambitious, targeting the production of 1.4 million units. Apart from aircraft, there is a strong emphasis on developing UAVs equipped with artificial intelligence and other advanced technologies.

BULGARIAN MILITARY

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