Czech and European news outlets reported that the current crisis unfolding between Ukraine and Russia is forcing a company that produces Unmanned Aerial Vehicles (UAVs) to halt their branch in the latter country. The company in question is the Czechia based Primoco UAV, which has business manufacturing drones. With Czechia being a NATO and EU member, as the crisis began, the company has faced several challenges in Russia and decided to shut down its operations at the end of January. As of now, Primoco UAV is still in business but not in Russia. After the halt, their Russian subsidiary AO Primoco BPLA was sold to Russian buyers.
The chief executive of Primoco UAV, Ladislav Semetkovský, indicated that “the only reason for this decision is the sanctions regime against the Russian Federation and the impossibility of obtaining the export license [the company] needed to operate its drones”. Indeed, the political conditions in Russia are highly unfavourable for businesses that are based in the EU. This is in line with the plan of EU officials: lack of licenses to operate abroad provoked a total loss for the Russian Federation of almost €11 million because of lost contracts.
There are reasons why this Czech company is so heavily hit by sanctions. This month tensions between Russia and Ukraine have been increasing amid NATO’s refusal to guarantee that Ukraine will never join the alliance and the joint military exercises between Russia and Belarus, making analysts worry about a possible war. In addition, while the western countries have been sending military aid to Ukraine, the Russian Federation recognised the self-proclaimed republics of Donetsk and Luhansk in Donbas. Consequently, the President of the Russian Federation, Vladimir Putin, sent military help to the separatists and gained the approval of the Parliament over the utilisation of the Russian Army abroad.
In solidarity with Ukraine, Czechia is then forbidding military companies, including the drone producing Primoco UAV, to provide Russia with technology to help them in operations against Ukraine. Together with its EU and NATO allies, Czechia promoted the sanctions that are now hitting Russia. It is hard to tell when and if Primoco UAV will reopen its Russian branch. It will depend on how the current crisis settles. However, this uncertainty should provide a good measure of how drastic these sanctions are. Primoco UAV was selling their drones solely to the private sector, not the military. In addition, the company was specialised in medium-sized drones, with a maximum weight of 150 kg and an endurance of 15 hours with a maximum speed of 150 km/h
Written by Eugenio Montalti
Bibliography:
Adamowski, J. (2022, February 22). Czech drone maker withdraws from Russia amid sanctions concerns. The New York Times. https://www.defensenews.com/global/europe/2022/02/22/czech-drone-maker-withdraws-from-russia-amid-sanctions-concerns/
