How Russia and China Are Enabling Iran and Evading Western Economic Restrictions

Atlantic Council
Atlantic CouncilApr 3, 2026

Why It Matters

Disrupting the China‑Russia‑Iran supply network is essential to prevent Iran from bolstering its missile and drone capabilities, which could destabilize the Gulf region and strain U.S. security interests.

Key Takeaways

  • China supplies Iran drones, missiles, and components outside Western systems.
  • Russia and China’s evasion network shields Iran from U.S. sanctions.
  • U.S. must pressure China at summit to curb export loopholes.
  • Targeting transshipment hubs can disrupt Iran’s procurement supply chain.
  • Failure to act will expand Iran’s drone and missile capabilities.

Summary

The video examines how Russia and China are quietly enabling Iran’s war effort by circumventing Western economic sanctions.

Research from the Economic Statecraft Initiative shows that China supplies Iran with drones, anti‑ship cruise missiles, surface‑to‑air missiles and related components through supply chains that operate outside the U.S.-controlled financial system. These weapons have already been used against U.S. assets in the Gulf and on Russia’s battlefield in Ukraine, illustrating the tangible impact of the evasion network.

The presenter urges the incoming U.S. administration to raise the issue with President Xi at the next summit, tighten export‑control scrutiny, and target recurring trans‑shipment hubs that facilitate Iranian procurement. “Without firing a single shot, China and Russia are shaping the outcome of the war in Iran,” he warns.

If Washington does not disrupt these channels, Iran will continue to rebuild and expand its drone and missile arsenals, raising the risk of escalation in the Middle East and complicating U.S. strategic calculations across multiple theaters.

Original Description

While on the surface, it may appear that Russia and China are staying out of the US-Israeli war with Iran, new research from the Atlantic Council's Economic Statecraft Initiative shows the two countries, part of the "Axis of evasion", are actually enabling Iran through supply chains that exist outside the Western economic system. Emily Ezratty breaks it all down.
Emily is the co-author of the piece "From drones to rocket fuel, China and Russia are helping Iran through supply chains." For more, read the full article: https://www.atlanticcouncil.org/dispatches/from-drones-to-rocket-fuel-china-and-russia-are-helping-iran-through-supply-chains/

Comments

Want to join the conversation?

Loading comments...