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Russian Builders Cash In as Ukrainian Drone Attacks Drive Demand for Protective Structures, Investigation Finds

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Russian Builders Cash In as Ukrainian Drone Attacks Drive Demand for Protective Structures, Investigation Finds
Illustrative photo of a labourer at a housing construction site of Granelle, a Moscow-based developer, in southwest Moscow on March 12, 2021. (Source: Getty Images)

In 2024, Ukrainian drones carried out a record 7,339 strikes across more than 30 Russian regions, prompting a surge in demand for anti-drone defense solutions. This spike in attacks has fueled the rapid growth of a new industry in Russia: the construction of protective structures designed to shield buildings and critical infrastructure from drone strikes, according to Russian media Verstka.

The companies stepping into this field were previously involved in manufacturing items like soccer goal nets, scaffolding, and steel decking. In just the past year, the combined revenue of these construction firms has risen by over 1 billion rubles (approximately $11 million USD).

The surge in drone attacks has not only benefited companies supplying anti-drone defense but also workers directly involved in constructing these defenses. Their wages have increased, as foreign migrants are now prohibited from taking these jobs, Verstka reports.

Russian companies suggest constructing a metal frame around a building and covering it with special netting. The cost of such protection can reach millions of rubles. For example, covering a small boiler room or shop with netting (3.5 meters high, 300 square meters) could cost up to 9 million rubles (about $97,000 USD), according to one company consulted by Verstka. This price includes design, installation, materials, and the metal frame.

Example of implementing engineering passive UAV protection at the RN-VOLGOGRAD facility in Volgograd. (Source: Verstka)
Example of implementing engineering passive UAV protection at the RN-VOLGOGRAD facility in Volgograd. (Source: Verstka)

"Foreign nationals are prohibited from working in this sector in Russia. As a result, Russian workers can earn up to 300,000 rubles ($3,200 USD) per month on these projects," said a source from one of the anti-drone defense firms.

According to the reports, not only sensor and radar manufacturers, but also construction companies, scaffold producers, and metal structure makers are now pivoting to the anti-drone defense market.

Verstka found at least 12 companies that have shifted their focus from construction and repair supplies to developing and building anti-drone shelters. These companies showcase their work on their websites, displaying buildings and tanks protected by metal mesh.

"This is a huge source of profit," says an insider at one such firm. "The employees working on this project certainly receive more bonuses. Some have even bought new cars.”

Upon examining the legal histories of these firms, Verstka found that in some cases, the same owners operate multiple anti-drone defense companies. For example, Nikolai Kondratyev, a Tajikistani native, owns three such firms: Metalenergoholding Group, NPK "Oboronmetkhim," and Provolkoff. These companies saw their profits grow by 30% in 2023, collectively earning over 32 million rubles (about $340,000 USD).

Based on company data, the cost of designing protective structures typically starts at 500,000 rubles ($5,300 USD). Equipment like metal frames and mesh starts at 2.5 million rubles ($26,500 USD). The final price includes delivery and installation. According to Verstka's source, protecting a small tank would cost between 15 and 20 million rubles ($160,000 to $210,000 USD), while protection for several tanks could reach 50 million rubles ($530,000 USD) or more.

Clients who order these protective constructions are absorbing the rising costs. Often, they only learn about the increased budget at the last minute, once the rest of the expenses have already been agreed upon.

Earlier, the Main Directorate of Intelligence of Ukraine’s Ministry of Defense reported that one-third of facilities supplying fuel to the Russian military have been damaged or rendered inoperable due to special operations carried out by Ukrainian forces.

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