Daily Management Review

FT: Chinese sanctions hit US supplier of UAVs to Ukraine


11/01/2024


Skydio, a US drone producer, is encountering a supply chain dilemma due to sanctions implemented by China, as per the report from the Financial Times (FT). The company's drones are employed by allies of the United States such as Israel and the United Kingdom. Skydio also conducts deliveries in Ukraine.



Dronetto
Dronetto
The Financial Times notes that Skydio is the biggest drone maker in the US. The company is in the process of rapidly searching for other suppliers, such as battery makers, to the extent that the company has sought assistance from President Joe Biden's administration.

Skydio stated that Ukraine asked for thousands of its drones to be supplied. The company provides Ukraine with X10 surveillance drones, among other items. On October 30th, Skydio informed customers that there would be restrictions on the quantity of batteries provided for the drones. There are no expected deliveries until spring arrives.

China imposed sanctions on Skydio and two other US companies on 11 October for providing weapons to Taiwan. The US corporation's management was also put on the blacklist. Simultaneously, the US Congress is reviewing the possibility of imposing sanctions on DJI, a Chinese manufacturer of UAVs.

source: ft.com