Spare parts for Russian drones were bought for cryptocurrency, bypassing sanctions

The Kalashnikov Concern, with the help of intermediaries, purchased spare parts from China for the production of drones. The cryptocurrency Tether, a “stablecoin” pegged to the dollar, was used for payment. The Wall Street Journal reports this.

The publication writes that smuggler Andrei Zverev received a request from a Kalashnikov subsidiary to purchase parts for drones that the Russian army is using in the war in Ukraine. At the end of 2022, Zverev handed over an order worth millions of dollars to an electronics distributor in Hong Kong and paid for it with cryptocurrency.

“Kalashnikov asked me to find some opportunities for buying parts in China and supplying them,” Zverev said in an interview with The Wall Street Journal. He also noted that he had established connections with Chinese factories and organized routes for the supply of spare parts, which, among other things, helped companies avoid paying Russian customs duties. The electronics purchased by Zverev were loaded onto heavy-duty trucks in Shenzhen or Guangzhou and then shipped to Russia via Kyrgyzstan and Kazakhstan.

According to Zverev, goods were not declared at the borders to minimize the paper trail, and customs officers rarely checked such cargo. “Nobody knows what you’re carrying in the truck,” Zverev noted.

He also provided the publication with a document that listed 248 types of parts needed by the Kalashnikov subsidiary. Among them were STM32 microcontrollers, which are produced by a Swiss company. The Ukrainian military found them in Russian Zala Aero and Lancet drones. For this order, according to The Wall Street Journal, Zverev transferred about $10 million.

Participants in the Russian crypto market estimate the monthly volume of all “shadow trading” at approximately $10 billion. This figure was announced last August by former official and founder of the Garantex crypto exchange Sergei Mendeleev. At the same time, he announced the launch of the payment company Exved. According to Mendeleev, it should help importers pay foreign suppliers via Tether within a few hours.

At the end of 2023, US President Joe Biden signed a decree that allows the introduction of sanctions against foreign banks for assisting in transactions with Russian companies. Since then, Russia has faced difficulties in obtaining payment for oil.

To receive the main news faster, subscribe to our telegram and Twitter .