A military UAV engine, millionaire, inventor convicted in Germany and sanctions – they are all in the same court case.
On August 21, Moscow Arbitration Court decided on the dispute between Russian Russo-Baltic LLC (Cyr. “Руссо-Балт” TIN 7838001855) and German company Raikhlin aircraft Engine Developments. In 2020 and 2021 these companies signed three contracts according to which Raikhlin aircraft Engine Developments would supply 25 RED A03 engines and 34 MT Propeller Systems to Russia for Russo-Baltic .
Under terms of the contracts Russo-Baltic made advance payment totaling 4.695.975,73 euros.
In 2, 2011 the Federal Office for Economic Affairs and Export Control (BAFA), Germany banned export of propellers to Russia so company terminated their contract and Raikhlin aircraft Engine Developments partially returned money to them – 8,24,930,935,000 euro in euros.
After that, on March 3, 2022, after Russia’s invasion of Ukraine and the imposition of sanctions by the EU against Russia, Raikhlin aircraft Engine Developments notified Russo-Baltic of the termination of all business relations. In addition, the German company informed about its inability to return 3.871 million euros paid as advance payment for engines.
Russo-Baltic appealed to Moscow’s Arbitration Court, which ruled to recover 3.8 million euros of debt plus 445 thousand euros in penalties from Raikhlin aircraft Engine Developments. The dispute over sanctions between the companies is interesting, as it is partly documented in court materials and partly appears to be classified or only reported in some media.
Firstly, the RED A03 engine was developed by Russian engineer Vladimir Raikhlin. In 2023, the German media Flugrevue reported that Raikhlin had been sentenced in Germany to five years in prison for illegal export of engines from Russia.
Raikhlin aircraft Engine Developments, according to court materials, is owned by the German company Red Engineering Holdings Limited, which owns 64.85% shares. The majority shareholder of Red Engineering Holdings is Finam Company Limited, and it in turn belongs to FINAM Holding, the ultimate owner of which is Victor Remsha, a Russian citizen.
Forbes estimated Victor Remsha’s net worth at $950 million in 2019. The businessman has made investments not only in financial companies but also in dozens of IT companies including social networks and dating services.
In 2021, media reported on Victor Remsha’s departure from the capital of Finam, a financial group he founded. However, he likely retained his influence over the German aircraft engine manufacturer at the time. Materials from the Moscow Arbitration Court cited data from a report by the US Federal Bureau of Investigations Customs Criminal Division dated November 18, 2022, stating that ” Raikhlin aircraft Engine Developments GmbH is owned by Remsha’s brothers.”
Disputes over RED A03 engines may also be significant due to the aircraft they power. In 2017, Business Online reported the first flight of an Altair military drone (weighing five tons), equipped with two RED engines.
In 2019, the Russian Ministry of Defense published a video of the flight of this UAV in a version called Altius-U.
On July 8, 2025, an Altius UAV crashed in the Russian city of Kazan, the Business Online newspaper reported.
Reference:
The Altius-U has a range of capabilities, including reconnaissance using optical, radar, and radio equipment, as well as the ability to stay in the air for over a day. Its weight is approximately 6 tons, and it uses a satellite control channel to extend its range of application. This makes it one of the most advanced unmanned aircraft systems in Russia. Data from the Ministry of Defense of the Russian Federation.
