US Treasury Sanctions Networks Supporting Iran's Drone and Missile Programs

The US Department of the Treasury, through its Office of Foreign Assets Control (OFAC), has imposed sanctions on 14 individuals and entities in Iran, Turkey, and the United Arab Emirates for their involvement in procuring or transferring weapons and their components for the Iranian regime. These measures are part of an "economic grief" campaign targeting Iran's efforts to rebuild its military production capabilities, particularly amid its increasing reliance on "Shahed" drones.

Treasury Secretary Scott Bessent affirmed that these actions are intended to hold the Iranian regime accountable for its exploitation of global energy markets and its indiscriminate targeting of civilians. He stated that the department will continue to track funds and target any entities supporting the "recklessness" of the Iranian regime.

This action is a continuation of the implementation of the second National Security Presidential Memorandum, which aims to curtail Iran's ballistic missile program, counter its development of asymmetric and conventional weapons capabilities, and prevent it from acquiring nuclear weapons. These sanctions also represent the fifth round of US Treasury designations related to nuclear non-proliferation, in support of reimposing UN sanctions on Iran.

The sanctions target three individuals for supporting Iran's "Pishgham Electronic Safa" company, which purchased drone engines found in "Shahed-136" drones. Also sanctioned is a currency exchanger who managed payments for materials used in missile and drone programs, an associate who directed shipments of materials to Dubai, and an agent who facilitated the receipt and delivery of materials.

The department also took action against a Turkish company that supported an Iranian firm supplying the Iranian Ministry of Defense with raw materials for ballistic missile propellant. Another company facilitated the purchase of raw materials for missile production. Sanctions also included officials from two Iranian companies linked to these operations.

Additionally, several individuals were designated for their connections to "Mahan Air" or its affiliated companies, which are involved in the procurement and transport of unmanned aerial vehicle systems and weapons to and from Iran. Entities in multiple countries have supported its flights. Two B777 aircraft owned and operated by the company were also identified.

These measures result in the freezing of all property and interests in property of the designated individuals and entities, as well as any entities owned 50% or more by them. US persons are prohibited from engaging in any transactions involving the property of these individuals. Foreign financial institutions involved in transactions with the designated parties may also face secondary sanctions.