Russia and Iran struck drone production deal to bypass sanctions - report | Iran International
Russia and Iran struck drone production deal to bypass sanctions - report
A resident walks next to buildings and cars heavily damaged by a Russian missile strike, amid Russia's attack on Ukraine, in Odesa, Ukraine November 25, 2024.
Russia and Iran have coordinated a multi-billion-dollar project to produce Iranian-designed drones inside Russia for use in the war in Ukraine, according to report published Thursday by the Washington-based research organization C4ADS.
Leaked records reviewed by C4ADS showed that the Iranian company Sahara Thunder collaborated with the Russian firm Alabuga JSC to transfer the technology and expertise needed to produce a variant of the S-136 drone, which Russia used in military operations against Ukraine.
“This collaboration spanned multiple years and persisted in the face of global censure and sanctions against both countries,” the report said.
C4ADS said Sahara Thunder was “deeply embedded in state defense networks” and operated as “a prime example of Iran’s use of middlemen to carry out its activities,” while Russia leveraged Alabuga JSC for defense industrial use. Both firms had long-standing ties to their respective governments, the report said.
The investigation found that the companies used a UAE-based intermediary to conduct parts of their partnership, allowing them to “minimize evidence of direct contact in the UAE’s low-barrier business environment.”
Alabuga JSC made payments through wire transfers via the UAE and gold shipments. “The combination of the two offered agility in circumventing sanctions,” the report said.
C4ADS said the cooperation expanded beyond the drone project. “Reciprocal visits by both parties served not only to expand UAV localization but also focused on other defense industrial domains,” it said.
Iranian authorities have arrested several individuals accused of filming ongoing truckers’ strike activity in the south of the country and sending the footage to foreign-based media, Iranian media reported.
According to a statement from the Islamic Revolutionary Guard Corps (IRGC) in Khuzestan province, the suspects were identified and detained following intelligence operations.
The suspects are accused of trying to create “media pressure” against the state by sharing videos of strike scenes with what officials described as “hostile networks.”
“These individuals, with the goal of fueling media pressure against the Islamic Republic, had recorded and sent multiple videos of truckers’ gatherings and strikes to anti-Iranian networks,” the statement said.
The arrests come as a nationwide truckers’ strike enters its second week, disrupting freight transport across Iran. The protest, launched over fuel quotas and working conditions, has affected major transport hubs and drawn increased attention from security forces.
The IRGC said the detainees have been handed over to judicial authorities for further proceedings.
US President Donald Trump said on Thursday that a new nuclear agreement with Iran was close despite persistent public disagreement over enrichment, though media reports citing sources close to the talks suggested various novel ways out of the impasse.
“We are very close to a solution,” Trump said on Wednesday. “If we can make a deal, I’d save a lot of lives," adding that Iran appears willing to engage seriously and that they had constructive discussions.
The talks mediated by Oman have entered crunch time with no date and location yet announced for a sixth round.
The United States and Iran are nearing a broad agreement on the future of Tehran’s nuclear program, CNN reported on Wednesday, with talks progressing in recent weeks toward a framework that could be finalized at a future meeting.
Washington and Tehran are considering a potential multinational consortium—possibly including regional partners and the International Atomic Energy Agency—to produce nuclear fuel for Iran’s civilian reactors and may include US investment, CNN reported citing source familiar with the talks.
A White House official, speaking to Fox News, said nothing had yet been agreed on Iran’s nuclear energy program.
Iran denies enrichment freeze proposal
Tehran says its nuclear program is purely peaceful but Western countries and its Mideast adversary Israel doubt its intentions.
Iran says it is keen to reach a nuclear deal but has maintained a right to domestic enrichment despite US demands to shutter it.
Iran on Thursday denied a Reuters report citing two Iranian officials saying they were mulling a proposal to halt uranium enrichment for a year and ship part of its highly enriched stockpile abroad or convert it into fuel plates for civilian nuclear purposes.
“The continuation of enrichment in Iran is a non-negotiable principle,” Foreign Ministry spokesman Esmaeil Baghaei said Wednesday.
The suggestion mulled by Iranian officials, according to the sources cited by Reuters, envisions the disbursement of funds frozen by Washington and the recognition of Tehran's right to enrich uranium for civilian use in return for the pause.
Meant as a political deal that could pave the way for a broader accord, the proposal not yet been floated in the talks, Reuters cited the Iranian sources as saying.
Austria on alleged Iranian nuclear arms ambitions
Austria’s domestic intelligence agency released a report this week saying Iran's program to develop nuclear arms is far advanced, in wording which appeared to outstrip that of its Western counterparts.
"Nuclear weapons are intended to make the regime untouchable and to expand and consolidate its dominance in the Near and Middle East and beyond," the Austrian Federal Office for the Protection of the Constitution said in its annual report.
"The Iranian program for the development of nuclear weapons is far advanced."
The United States has publicly assessed that Iran has not yet decided to build a nuclear weapon but maintains that its nuclear program is aimed at becoming a nuclear threshold state to deter foreign attack.
The Austrian report further alleged that Tehran aims to develop long-range ballistic missiles capable of delivering nuclear warheads, without citing any evidence.
"An arsenal of ballistic missiles is ready to carry nuclear warheads over long distances."
Iran open to US inspectors
In an apparent policy shift, the head of Iran’s Atomic Energy Organization said Tehran may reconsider its longstanding ban on US nuclear inspectors if current talks with Washington lead to a successful agreement.
Mohammad Eslami said American inspectors affiliated with the International Atomic Energy Agency (IAEA) could be allowed into Iranian sites under a future deal, despite current restrictions on personnel from adversary states.
“It is normal that inspectors from hostile countries are not allowed, but if a nuclear deal is reached, we might allow American inspectors,” Eslami said.
Later on Wednesday, IAEA chief Rafael Grossi said any deal between Tehran and Washington that would impose fresh nuclear curbs on Iran should include very robust inspections by the UN nuclear watchdog.
"My impression is that if you have that type of agreement, a solid, very robust inspection by the IAEA ... should be a prerequisite," he said.
"I'm sure it will be, because it would imply a very, very serious commitment on the part of Iran, which must be verified."
US officials have repeatedly said that any new nuclear deal with Iran to replace a lapsed 2015 accord between Tehran and six world powers must include a commitment to halt enrichment, viewed as a potential pathway to developing nuclear bombs.
Iran's stockpile of 60% enriched uranium had increased to 275 kg, enough to theoretically make about half a dozen weapons if Iran further enriches the uranium.
Trump has previously warned that if no agreement is reached, military options remain on the table. “We can blow up a lab,” he said, referring to a hypothetical enforcement scenario under a possible inspection regime, “but nobody’s going to be in the lab.”
Trump, speaking to reporters, also confirmed that he warned Israeli Prime Minister Benjamin Netanyahu not to interfere with ongoing US-Iran negotiations.
The comments followed a New York Times report citing Israeli officials saying the Jewish State was preparing for a potential strike on Iranian nuclear sites even if Tehran and Washington clinch a deal.
Widespread power outages are crippling daily life across Iran, according to voice messages sent to Iran International by residents in cities including Tehran, Shiraz, Ahvaz and others.
Some of the accounts describe isolation in sweltering apartments, lack of essential services and increasing anger over government inaction.
In Ahvaz, where daytime temperatures top 45°C, one man said midday cuts had left families without air conditioning.
A resident of Pardis near Tehran reported being stranded in a high-rise: “On the 14th floor, we’re cut off from the world for two hours a day—no power, no water, no communication.”
In Shahreza in Isfahan province, a woman filmed a gas station rendered defunct by power cuts.
Iran faces a shortfall of nearly 20,000 megawatts, a crisis fueled by extreme heat, dwindling hydropower, and years of underinvestment.
Messages show burned-out appliances, food spoilage, and even fire damage. “This fire started because of power flickers,” said one man, gesturing to a scorched storefront. “This is one of the blessings of the Islamic Republic.”
Some residents complained about bathing children with bottled water and elderly citizens stuck in buildings without functioning elevators or water pumps.
“No bread, no water, no electricity, no internet, no clean air,” one voice said. “This already is hell.”
The outages have hit mobile networks and small businesses alike, with dead batteries at relay stations shutting down service and shopkeepers counting losses. “The fuse blew. Everything spoiled. I paid a heavy price,” said a Gelato shop owner.
Despite vast oil and gas reserves, Iran’s government has failed to upgrade infrastructure or build renewables.
Authorities continue to cite illegal cryptocurrency mining as a strain. Energy Minister Abbas Aliabadi said such operations now consume over 1,000 megawatts—about 5% of the shortfall.
But the broader collapse in services continues. In high-rise buildings, electricity cuts disable water pumps, leaving residents without running water. “We haven’t showered in two days,” said a woman in one video. “We use bottled water for the toilet. At least open the public baths.”
Three Indian nationals who traveled to Iran earlier this month are missing, India’s embassy in Tehran said on Wednesday, adding that urgent rescue efforts are underway.
“Family members of 3 Indian citizens have informed the Embassy of India that their relatives are missing after having travelled to Iran,” the embassy said in a statement.
“The Embassy has strongly taken up this matter with the Iranian authorities, and requested that the missing Indians should be urgently traced and their safety should be ensured.”
The missing men — Hushanpreet Singh, Jaspal Singh, and Amritpal Singh — are all from the northern Indian state of Punjab and reportedly lost contact with their families shortly after landing in Tehran on May 1.
According to Indian media, they had planned to travel to Australia via Dubai and Iran, reportedly with the help of an agent based in Hoshiarpur who is now also missing.
Relatives said the men were kidnapped and that a ransom was demanded.
The embassy said it is in regular contact with the families. There was no immediate comment from Iranian authorities.
Iran may reconsider its longstanding ban on US nuclear inspectors if ongoing negotiations with Washington result in a successful agreement, the head of Iran’s Atomic Energy Organization said on Wednesday.
Nuclear chief Mohammad Eslami told reporters in Tehran that inspectors from the United States — currently excluded due to what Tehran views as hostile policies — could be allowed access to Iranian nuclear sites under the auspices of the UN nuclear watchdog, the International Atomic Energy Agency (IAEA), if a deal is finalized.
“It is normal that inspectors from hostile countries are not allowed, but if a nuclear deal is reached, we might allow American inspectors working for the International Atomic Energy Agency to visit our nuclear sites,” Eslami said.
The remarks come as Iran and the United States are expected to enter a sixth round of talks aimed at reviving diplomacy over Tehran’s nuclear program. US President Donald Trump, who withdrew from the 2015 nuclear agreement during his first term, said earlier this month that he expects “good news” from the negotiations.
Enrichment still a red line
Eslami said that uranium enrichment remains a red line for Tehran, speaking of its significance to the country’s nuclear infrastructure.
“Enrichment is the foundation and pillar of the country's nuclear industry,” he said, comparing Western proposals to allowing a country access to a power grid while denying it the ability to generate electricity.
Daily electricity consumption in Iran can vary, with peaks reaching over 72,000 megawatt (MW), exceeding the actual power generation capacity of 60,000 MW during the summer. The capacity of Bushehr nuclear power plant, Iran’s biggest, is currently 1,000MW.
Western powers, led by Washington, have demanded Iran halt uranium enrichment over fears it could lead to nuclear weapons development. Tehran says its program is purely civilian and that it has no plans to build a nuclear bomb.
Iran’s nuclear chief also expressed hopes for what he called greater professionalism from the IAEA and urged the agency to resist outside political pressures, particularly from what he described as “Zionist influence.”
IAEA deputy director allowed to visit sites
He said IAEA Deputy Director General Massimo Aparo is currently in Tehran to inspect two remaining sites as part of an earlier agreement signed in March 2023.
“We hope the agency will act professionally and reduce the influence of the Zionist current,” Eslami said, adding that Iran is fully transparent and operates under full IAEA oversight.
No official proposal on consortium
Addressing reports of a potential nuclear fuel enrichment consortium involving Persian Gulf states, Eslami said Iran has not yet received an official proposal on the matter.
“Our position is legal and based on our rights. Enrichment is the essence of our nuclear industry. We are committed not to pursue nuclear weapons,” he said.
Eslami also dismissed recent allegations from opposition groups and Israeli intelligence about secret nuclear activities, calling them recycled accusations aimed at undermining Iran’s nuclear program.
“Such claims have always been made, but they are baseless. Whenever inspections occur, the truth emerges,” he said.
Oversight of Iran's nuclear facilities has been increasingly challenging for the IAEA. In 2022, Iran removed IAEA cameras and in September 2023, Iran banned a third of the IAEA's inspectors.
