Western intelligence analysts, through forensic supply chain tracking, have confirmed to Reuters that Russian defense firm IEMZ Kupol has successfully bypassed EU and U.S. sanctions through a network of mysterious front companies established to funnel dual-use drone components from China into Russia. 

According to the report, Chinese-made drone engines, such as the L550E, a four-stroke, air-cooled, horizontally opposed piston engine originally produced by Xiamen Limbach Aviation, were falsely labeled as "industrial refrigeration units" to evade Western sanctions and shipped via the Chinese firm Beijing Xichao International Technology to IEMZ Kupol.

The shipments enabled IEMZ Kupol to increase production of its long-range precision strike drone, known as the "Garpiya-A1." 

Reuters cited an internal IEMZ Kupol memo that showed it signed a series production contract with the Russian Defence Ministry for 6,000 Garpiya-A1s this year. 

More color from the report:

In September, Reuters reported that Kupol was producing the Garpiya using Chinese technology, including L550E engines made by Xiamen Limbach Aviation Engine Co. A month after the Reuters' report, the European Union and the U.S. sanctioned several companies involved in producing the drones, including Xiamen.

In the wake of the sanctions, a new Chinese firm called Beijing Xichao International Technology and Trade has started supplying the L550E engines to Kupol, according to invoices, a Kupol internal letter and transportation documents reviewed by Reuters.

The increase in production of Garpiya as well as the new intermediaries supplying parts for the drones are reported by Reuters for the first time.

Last week, Russian state media broadcast for the first time a new massive drone production facility in Yelabuga, Tatarstan, where Iranian-designed Shahed-136 drones, rebranded by Russia as the Geran-2, are being manufactured.

A separate report from Bloomberg earlier this month mapped out Russian firm Aero-HIT's supply chain that extends deep into China. 

The reason Western corporate media is focused on these stories is likely due to an urgent push to pressure Western leaders to impose even more sanctions on Russia, and potentially rein in China, in an effort to disrupt the Russia-China drone supply chain that continues to fuel Moscow's war effort in Ukraine.

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And this:

Front companies from India have also been funneling US AI chips to Russia... 

So the solution is more sanctions on Russia? How's that strategy working out, Washington?