Russia has launched 28,000 Shahed drones during the war – and they’re not as cheap as you’d think

Leaked documents show how Iran made a fortune selling the drones to Russia, especially in the earlier stages of the war.

Another night, another Russian attack

During the night between Wednesday and Thursday, Russia has once again send drones into Ukraine.

Too many hits

According to Ukraine’s Air Force, 41 Shahed-drones as well as a number of decoys were spottet.

24 of them were downed, but seven of them hit Ukrainian territory. The rest disappeared from radars.

28,000 Shaheds during the war

Speaking at the Dutch Parliament in The Hague, Ukrainian President Volodomyr Zelenskyy said earlier this week, that Russia has launched more than 28,000 Shahed drones since the beginning of the war in February of 2022.

Cheap – but definitely not free

So the question is, how much does this kind of terror bombing actually cost Russia?

Let’s look at what we know.

Initial Production Costs in Iran

The Shahed-136 drone, developed by Iran, was initially estimated to cost between $20,000 and $50,000 per unit for domestic production, according to Iran International.

Russia’s Bulk Purchase Agreement

In 2022, Russia entered into a significant agreement with Iran to procure 6,000 Shahed-136 drones.

The negotiated price for this bulk purchase was approximately $193,000 per drone, totaling around $1.75 billion, leaked documents showed in 2024.

Higher Costs for Smaller Orders

According to Military View, the cost per drone was higher for smaller orders.

For instance, an order of 2,000 drones was priced at $290,000 each.

Payment in Gold Bullion

To circumvent international sanctions and banking restrictions, Russia paid Iran in gold bullion for the drones.

According to The Telegraph, reports indicate that Russia transferred nearly four tons of gold to Iran as part of the payment for the Shahed-136 drones.

Establishment of Russian Production Facilities

As part of the agreement, Iran assisted Russia in setting up domestic production facilities for the Shahed-136 drones.

The Alabuga Special Economic Zone in Tatarstan became a central hub for this production, aiming to produce 6,000 drones by the summer of 2025.

Reduced Costs Through Localization

By localizing production, Russia managed to reduce the per-unit cost of the drones.

Estimates suggest that domestically produced Shahed-136 drones, known in Russia as Geran-2, cost between $48,000 and $80,000 each.

Technology Transfer and Licensing Fees

The overall cost of the drones included not just the physical units but also technology transfer, licensing fees, and the establishment of production infrastructure.

These additional components contributed to the total contract value of $1.75 billion.

Use of Western Components

Investigations have revealed that the Shahed-136 drones incorporate components from Western manufacturers, including electronics and engines.

This reliance on foreign parts has implications for both cost and supply chain vulnerabilities.

So how much has Russia spend on Shaheds?

Considering the initial $1.75 billion deal and ongoing domestic production costs, Russia’s total expenditure on Shahed-136 drones is estimated to exceed $2 billion.

This figure encompasses both procurement and production expenses.