‘Cooling units’ or drone engines: Is China secretly fueling Russia’s drone war in Ukraine? All you need to know

China has reportedly been helping Russia sidestep Western sanctions by sending drone engines disguised as “industrial refrigeration units,” according to European security officials and documents reviewed by Reuters. These L550E engines, made by Chinese firm Xiamen Limbach Aviation Engine Co, were allegedly sent to Russian state-owned weapons maker IEMZ Kupol. The components were later used in the mass production of Garpiya-A1 attack drones, a long-range weapon deployed frequently in Ukraine.

Massive surge in Russian drone production

A leaked Kupol document shows the company signed a deal with the Russian defence ministry to produce over 6,000 Garpiya drones in 2025, up from 2,000 the previous year. By April, more than 1,500 had already been delivered.

Ukrainian military intelligence told Reuters that Russia is now using about 500 Garpiya drones per month. The drones are reportedly based on Iranian Shahed drones but incorporate Chinese engines and guidance systems.

How the shipments were allegedly disguised

Documents seen by Reuters show that after the U.S. and EU sanctioned Xiamen, a new supplier, Beijing Xichao International Technology and Trade, took over. The engines were then shipped to a Russian front company, SMP-138, and passed on to LIBSS, which supplied them to Kupol.

A contract between LIBSS and Kupol explicitly stated the engines would be described as “cooling units” to avoid scrutiny. The engines travelled from Beijing to Moscow and then to Izhevsk, where Kupol is based.

China denies knowing anything

China’s foreign ministry said it was unaware of the engine shipments and insisted it regulates dual-use exports in line with international rules. “China has always opposed unilateral sanctions that lack basis in international law and are not authorised by the U.N. Security Council,” the ministry said in a statement to Reuters.

EU calls on China to act

European Commission President Ursula von der Leyen urged Beijing to use its influence over Putin to support peace talks. “China has an influence on Russia, like the European Union has an influence on Ukraine,” she said after meeting Chinese President Xi Jinping. “It is our expectation that China uses this influence to make sure that Russia is coming seriously to the negotiation table.”

Peace talks make little progress

Ukraine and Russia held a third round of talks in Istanbul this week. The meeting ended quickly and failed to secure a ceasefire. Russia offered temporary truces for humanitarian reasons but rejected a broader ceasefire. Kyiv has proposed a direct meeting between Presidents Zelensky and Putin by the end of August. So far, the Kremlin has not agreed.

Trump threatens new tariffs on Russia and its partners

US President Donald Trump warned on July 14 that Russia would face “severe” secondary tariffs if it doesn’t agree to end the war within 50 days.

He added that any country continuing to buy Russian oil, such as China, could face 100% tariffs on exports to the U.S. This would raise prices for American consumers and increase pressure on Chinesebusinesses.