US sanctions international suppliers supporting Iran's Shahed drone manufacturer
The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) imposed new sanctions on a global procurement network accused of supporting Iran's growing military drone program, according to a statement on July 31.
The measures target five companies and one individual based in Iran, China, Hong Kong, and Taiwan, allegedly involved in sourcing sensitive technology for the Iranian Aviation Manufacturing Company (HESA), a state-owned defense firm linked to Iran's Ministry of Defense and Armed Forces Logistics (MODAFL).
Iran has been a key ally to Moscow and provided the country with ballistic missiles and thousands of Shahed kamikaze drones — developed and manufactured by HESA — for its war against Ukraine. Russia has also launched production of its own Shahed equivalents called Gerans.
"Iran continues to pursue the development of asymmetric weapons capabilities, including unmanned aerial vehicles, to carry out attacks on the U.S., our service members, and our partners and allies in the region," said Under Secretary of the Treasury for Terrorism and Financial Intelligence John Hurley.
Iran’s Control Afzar Tabriz Co. Ltd., which allegedly procured CNC machine tools for HESA, is among those sanctioned. Hong Kong-based Clifton Trading Limited, accused of acting as an intermediary to conceal Control Afzar’s role, is also targeted.
The list includes Taiwanese firms Mecatron Machinery Co. Ltd. and Joemars Machinery and Electric Industrial Co. Ltd., which reportedly supplied the equipment, along with China-based Changzhou Joemars Industrial Automation Co. Ltd., a subsidiary of Joemars Machinery.
The U.S. also sanctioned Javad Alizadeh Hoshyar, CEO of Control Afzar Tabriz Co. Ltd., who allegedly coordinated all procurement activities.
As a result of the sanctions, all assets of the designated individuals and entities under U.S. jurisdiction are frozen. U.S. persons and companies are barred from engaging in transactions with them without authorization from OFAC.
Entities that are 50% or more owned by sanctioned individuals are also automatically subject to the restrictions. Foreign financial institutions that conduct business with the designated parties risk secondary sanctions, including limits on access to U.S. correspondent or payable-through accounts.
Russia has been regularly deploying Shahed-type drones for nighttime attacks on Ukrainian cities and infrastructure, overwhelming Ukrainian air defenses with massive swarms.
Ukraine's intelligence has warned that the Russian defense industry seeks to ramp up the production of the strike drones, aiming to deliver 500 unmanned aircraft per month for Russia's war effort.
