Chainalysis analysts say Russia is using cryptocurrency to buy Shahed drones

Russia and Iran are increasingly using cryptocurrencies to purchase inexpensive commercial drones and their components for military purposes. This is reported by Benzinga with reference to a study by Chainalysis.

According to the material, sanctioned entities associated with the defense sector of Iran and its allies use digital assets to purchase components subject to export restrictions. Iran’s Shahed drone program relies heavily on parts obtained through procurement networks in third countries.

The authors recall that a similar pattern was evident at the beginning of Russia’s full-scale invasion of Ukraine in 2022. At that time, pro-Russian organizations reportedly raised more than $ 8.3 million in cryptocurrencies on various blockchains to buy drones through e-commerce platforms.

The publication also draws attention to the military-technological cooperation between Moscow and Tehran. Russia has reportedly transferred battle-tested drone technology to Iran and used Iranian licensing to scale up production. Iran, in turn, has used drones with integrated Russian data in regional strikes.

The article emphasizes that cryptocurrency has long been a way for Iran to circumvent Western sanctions. In particular, a January report stated that the Iranian Ministry of Defense’s export center Mindex was ready to discuss military contracts with payment in digital currencies.