May 20, 2025

Drones for War, Not for Pizza Delivery


Drones for War, Not for Pizza Delivery
A typical FPV-drone video feed with an on-screen display readout showing navigation data. Patrick McKay, Wikimedia Commons

Russia is experiencing a boom in drone manufacturing. According to independent outlet The Insider, investments in unmanned aerial vehicle (UAV) production for Russia's War on Ukraine match the funding allocated to nuclear energy over the next six years. Many drone manufacturers operate under the guise of civilian projects and rely heavily on components imported from China.

In 2023, the head of the Urban Aeromobility Management Center (TSUGAM) in Moscow promised that drones would soon deliver parcels and groceries, monitor construction progress, and inspect communication towers. Deputy general director of TSUGAM Andrei Anikin claimed that agreements had been signed with VkusVill, X5 Group, Pochta Rossii, and the multinational pizza chain Dodo Pizza.

While drone-based pizza delivery has not materialized, TSUGAM has become one of Russia's fastest-growing young companies. Its growth stems largely from acquiring shares in drone manufacturers supplying the Russian military. TSUGAM has opened a production facility and testing ground in the Russian-occupied Luhansk Oblast and launched a training program in the annexed Ukrainian city of Sevastopol.

TSUGAM is not alone. Since 2023, Russia has registered a record 407 companies involved in aircraft manufacturing. Many are connected to drone production, according to The Insider. At least 140 companies now produce drones. Another 60 companies supply parts, resell drones, or train operators.

Combined, these drone-related firms earned over R136 billion ($1.7 billion) in revenue in 2024. Investment in them totaled R243 billion ($3 billion) over 2023 and 2024 — nearly matching the investments in Russia’s entire nuclear energy sector for the next six years. Similar long-term sums are also being allocated by the state for waste recycling, water treatment plant construction, and environmental cleanup.

Many companies obscure their military connections by presenting themselves as civilian drone producers. For example, Supercam highlights its UAVs' use in agriculture, oil and gas, energy, and environmental monitoring industries. But while these drones are used by the Ministry of Emergency Situations and forest and environmental agencies, they are also deployed in military operations.

Meanwhile, the Russian government has struggled to meet its civilian drone procurement goals. In 2024, a state order for just 3,000 civilian drones was unfulfilled as of April 2025. By comparison, in the summer of 2024, Russian Defense Minister Andrei Belousov claimed that up to 4,000 drones were arriving at the front each day. In addition to manufacturers prioritizing military contracts, Kommersant reported that bureaucratic hurdles prevent firms from receiving state funding. 

According to The Insider, Russian military drone production remains critically dependent on Chinese imports. While overall electronic imports to Russia have declined, supplies for drone companies are rising. Imported items include engines, controllers, batteries, 3D printers, casting molds, and machining equipment. Engines alone account for 38% of import costs among drone firms tracked by The Insider, followed by controllers (25%) and batteries (20%).

Western sanctions have limited impact on this sector. Only China has the leverage to disrupt it, The Insider reports. A Chinese ban on exporting electric motors — rarely used in Russia outside of drone manufacturing — could halt production entirely. While Russia could attempt to localize production, it is unlikely to achieve mass manufacturing of key components in less than a year. 

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