Iranian, Russian Defense Companies Collaborating on Drone Production

Latest Developments

• Increased Russian Drone Production With Iranian Help: Iran is assisting Russia extensively with its domestic production of drones, according to a new report by a Washington, DC-based research institute. Leaked records indicate that an Iranian company, Sahara Thunder, provided a Russian company, JSC Alabuga, with the technology and expertise to manufacture the Geran-2, a Russian-produced variant of Iran’s Shahed-136 UAV, which has increasingly been deployed against military, economic, and civilian targets in Ukraine. Sahara Thunder is “subordinate” to Iran’s Ministry of Defense and Armed Forces Logistics and plays “an instrumental role in the Iranian military’s sale of UAVs,” according to an April 25, 2024, Treasury Department sanctions announcement.
• UAE Companies Playing Intermediary Role: The report also found that both Sahara Thunder and Alabuga JSC utilized intermediary companies in the United Arab Emirates to facilitate their collaboration. Both companies exploited the UAE’s Free Zone Establishments — special business jurisdictions that “allow full foreign ownership, [and] tax exemption” — streamlining the transfer of assets and funds and minimizing direct contact between the two parties. Both conducted transactions using gold ingots to avoid reliance on the U.S. dollar and limit their digital footprints.
• Recent Use of Drones Against Ukraine: Russian attacks on Ukraine involving an average of 100 Shahed-style drones per night have become increasingly common in 2025. On the night of May 25-26, Moscow launched one of its largest drone and missile attacks of the war against Ukrainian cities, reportedly firing 355 Shahed-style drones, according to Ukrainian officials. The Defense Intelligence Agency’s recent Worldwide Threat Assessment found that Iran is seeking to “leverage” its provision of drones to Russia for advanced military technology and that Russia is “expanding its sharing of space, nuclear, and missile applicable technology, expertise, and materials” to Iran, as well as to North Korea and China.

FDD Expert Response

“Ali Khamenei, Iran’s Islamist dictator, is helping Vladimir Putin, Russia’s neo-imperialist dictator, slaughter Ukrainians. In exchange, Putin is supporting Khamenei’s hegemonic ambitions in the Middle East, including his genocidal threat to Israel. Both are aligned with Xi Jinping, leader of the most powerful communist party in history, along with Kim Jong Un, the dynastic dictator of North Korea. The United States and other free nations need to recognize and respond to the fact that a Cold War — involving dangerously expanding military alliances — is being waged by this Axis of Aggressors.” — Clifford D. May, Founder and President

“The Islamic Republic of Iran is materially supporting and augmenting Putin’s ability to use drones to kill civilian men, women, and children in Ukraine. The regime in Tehran is not just the leading threat in the Middle East but also a leading accomplice in Putin’s unprovoked war of aggression in Ukraine. To help Ukraine and counter Putin’s invasion, Americans and Europeans must unite around a much more aggressive and multifaceted policy toward Tehran.” — Bradley Bowman, Senior Director of FDD’s Center on Military and Political Power

FDD Background and Analysis

“‘Accelerated Cooperation’ Between U.S. Adversaries: New Report Warns,” by Lydia LaFavor, Ryan Brobst, and Bradley Bowman

“Iranian Parliament Approves 20-Year Strategic Pact With Russia As Nuclear Negotiations With U.S. Flounder,” FDD Flash Brief

“Putin ‘has to be dealt with differently,’” by Clifford D. May