US sanctions global network supporting Iran’s military drone programme
The US Treasury sanctioned five entities and one individual across Iran, Hong Kong, Taiwan, and China for allegedly procuring technology to support Iran’s military drone manufacturing, targeting a network it said has helped circumvent export controls to advance Tehran’s unmanned aerial vehicle capabilities.
The Office of Foreign Assets Control designated the companies for supporting the OFAC-designated Iran Aircraft Manufacturing Industrial Company, or HESA, a state-owned subsidiary of Iran’s Ministry of Defence that manufactures military aircraft and drones used by the Islamic Revolutionary Guard Corps.
The designated entities are Iran-based Control Afzar Tabriz Co Ltd and its CEO Javad Alizadeh Hoshyar, Hong Kong-based Clifton Trading Limited, Taiwan-based companies Mecatron Machinery Co Ltd and Joemars Machinery and Electric Industrial Co Ltd, as well as the latter’s China-based Changzhou Joemars Industrial Automation Co Ltd.
The network allegedly procured computer numerical control machines, used in high-end aerospace and defence manufacturing, for HESA and used intermediaries to ship equipment to Iran and circumvent sanctions.
OFAC’s action was taken under Executive Order 13382, which targets proliferators of weapons of mass destruction and their delivery systems.
‘Iran continues to pursue the development of asymmetric weapons capabilities, including unmanned aerial vehicles, to carry out attacks on the United States, our servicemembers and our partners and allies in the region,’ said Under Secretary for Terrorism and Financial Intelligence John Hurley.
The sanctions freeze all US-based assets of the designated entities and prohibit American individuals and companies from conducting business with them. Foreign financial institutions that knowingly facilitate significant transactions with the designated parties risk secondary sanctions.
The enforcement action supports National Security Presidential Memorandum 2, which directs that Iran be denied asymmetric and conventional weapons capabilities and that the IRGC be disrupted and degraded.
Iran’s military drones have been reportedly used by proxy forces across the Middle East and supplied to Russia for use in its war against Ukraine, making the technology a key component of Tehran’s regional influence operations.
HESA, established in 1976 and located in Isfahan province, was originally built by US company Textron to produce Bell helicopters, a collaboration that ended after the 1979 Iranian Revolution and subsequent sanctions on Tehran. Washington imposed sanctions on HESA in 2008 for its role in manufacturing military aircraft and drones for the Iranian military.
Control Afzar, Mecatron, Joemars Machinery and its subsidiary did not immediately respond to an email for comment, and it was not possible to reach the other entities named by the Treasury Department. The foreign ministry in Tehran also did not immediately respond to a request for comment.
