The widespread use of Iranian-made Shahed drones by Russian forces in Ukraine highlights evolving trends in global weapons proliferation, driven in part by complex international supply chains and the role of Chinese manufacturers. These drones, which cost roughly $20,000 each, represent a significant shift in military technology production, enabling countries like Iran to develop sophisticated weapons systems despite international sanctions and embargoes.

The Shahed drone’s design incorporates concepts initially developed by the United States and West Germany, with prior related models also produced by Israel. Iran’s development of the Shahed series stemmed from efforts to rebuild its air force after the 1979 revolution and to circumvent U.S. restrictions on acquiring Western military equipment. Iranian engineers integrated a German-designed turbojet engine, the L550E, into the drones, which was reportedly obtained through intermediaries using false documentation to bypass export controls.

A Chinese company, Xiamen Limbach Aircraft Engine, later acquired the German engine manufacturer Limbach Flugmotoren, facilitating continued supply of engines to Iran and Russia. Xiamen Limbach was sanctioned by the U.S. Treasury Department for its role in providing engines to Russia’s drone program. Iran has also developed domestic engine variants based on these German designs, relying heavily on components sourced through China’s industrial network.

U.S. and Ukrainian officials have detailed how the Shahed production depends on parts from Western countries, including microcontrollers from the American firm Texas Instruments and electronic components from Swiss manufacturer STMicroelectronics. However, these Western-made components were often shipped to Iran and Russia through a web of shell companies based in China and Hong Kong, obscuring their origin and circumventing sanctions. Both Texas Instruments and STMicroelectronics have publicly condemned the unauthorized use of their products in Iranian and Russian military equipment.

The drones have been used extensively in various conflicts, including attacks on a U.S. naval base in Bahrain and ongoing nightly strikes by Russian forces in Ukraine. Ukrainian authorities report that newer versions of the Shahed drone have incorporated enhanced navigation technologies, increasingly derived from Chinese-made components, allowing for greater precision and range. Some drones have also been observed carrying mock anti-aircraft missiles, likely intended to deter interception by manned aircraft.

The Russian military has deployed Shahed drones, referred to as "Geran," in combination with ballistic missile strikes to overwhelm defenses, particularly during attacks on Kyiv. Although ballistic missiles deliver more destructive power, Shaheds are cheaper and can be launched in larger numbers, straining Ukraine’s interception capabilities. Ukrainian forces indicate that advanced turbojet-powered Shaheds pose a distinct challenge, as they can evade standard interceptor drones, necessitating the use of manned fighter jets or scarce interceptor missiles for their destruction.

The turbojet engines for these advanced drones are believed to be manufactured by Telefly Telecommunications Equipment, a company based in Shenzhen, China. Known primarily for computer hardware and communications products, Telefly also produces micro turbojet engines marketed for drone use. Following scrutiny over the company’s reported involvement in supplying engines found in Russian drones, the English-language portion of its website removed references to the turbojet products, although information remains accessible in other languages.

Experts suggest that Iran’s initial focus was obtaining Western components, but the increasing capabilities of Chinese manufacturing and supply networks have allowed Iran to increasingly source and produce critical parts domestically or through Chinese intermediaries. This development illustrates how shifts in global supply chains and manufacturing capabilities are enabling middle powers to proliferate advanced military technologies despite international efforts to restrict them.