Omar Al-Ghusbi
Iran and Russia are deepening their political and military relationship through intermediary companies that facilitate their defense collaborations and flout global sanctions regimes. This report examines the case of Iran’s role in developing Russian unmanned aerial vehicle (UAV or drone) production capability, which Russia is using to wage its war in Ukraine. Leaked records indicate that the Iranian company Sahara Thunder led an extensive collaboration with the Russian company Alabuga JSC to provide the latter with the technology and know-how to produce a variant of the S-136 UAV, which Russia has since used widely in military operations against Ukraine.
This collaboration has spanned multiple years and persisted in the face of global censure and sanctions against both countries. Key aspects of the partnership include the following:
Close Ties to the State: Both Sahara Thunder and Alabuga JSC are economic actors with long-term ties to the state. Sahara Thunder is deeply embedded in state defense networks. It is a prime example of Iran’s use of middlemen to carry out its activities while the Russian state is leveraging Alabuga JSC for defense industrial use.
UAE Intermediaries: Sahara Thunder and Alabuga JSC used a UAE-based company to carry out aspects of their partnership, which allowed the two companies to minimize evidence of direct contact in the UAE’s low-barrier business environment.
Mixed Payment Systems: Alabuga JSC paid for equipment and services through wire transfers via the UAE and gold shipments. The two payment methods offer different advantages, and the combination of the two offers agility in circumventing sanctions.
Relationship Development: The outcome of this collaboration has outlived the UAV project. Reciprocal visits by both parties served not only to expand UAV localization but also focused on other defense industrial domains, indicating a growing Russian-Iranian military partnership.
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