U.S. Announces Sanctions Aimed At Iranian Network Used To Purchase Drone Parts

The U.S. Treasury Department announced the new sanctions on March 21. (file photo)

The United States has imposed new sanctions on Iranian firms and individuals accused of procuring equipment used to make drones.

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) coordinated with the FBI to designate four entities and three people in Iran and Turkey for allegedly buying equipment to be used for Iran’s drone and weapons programs.

“Iran’s well-documented proliferation of [drones] and conventional weapons to its proxies continues to undermine both regional security and global stability,” Brian Nelson, undersecretary for terrorism and financial intelligence, said in a news release issued on March 21.

“The United States will continue to expose foreign procurement networks in any jurisdiction that supports Iran’s military industrial complex," he said.

Among those blacklisted in the new round of sanctions are the Iran-based Defense Technology and Science Research Center (DTSRC), its procurement firm Farazan Industrial Engineering, and two other firms along with the companies’ purchasing agents.

The Treasury Department said this procurement network operates on behalf of Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL), which oversees several firms involved in drone and ballistic missile development.

U.S. defense officials say Iran is supplying Russia with drones, which have been used on civilians and civilian infrastructure in Ukraine as the Kremlin presses its invasion.

The action follows OFAC’s designations on March 9 of a network based in China in connection with Iran’s drone procurement efforts, as well as several previous OFAC actions targeting Iran’s UAV manufacturers and their executives since September 2022.

The individuals named are Amanallah Paidar, who has served as a commercial manager and procurement agent for the DTSRC; Murat Bukey, a procurement agent who has supported Paidar and his DTSRC-related procurement; and Asghar Mahmoudi, who has facilitated the supply of items, including marine electronics, to Paidar and the DTSRC, according to the OFAC.

Bukey attempted to provide European-origin engines with drone and surface-to-air missile applications to Paidar and Farazan Industrial Engineering, OFAC said, adding that he separately sold more than 100 European-origin drone engines and related accessories worth more than $1 million to companies that likely shipped the items to Iran.

The sanctions freeze any property held in U.S. jurisdiction by the three individuals and the entities. In addition, people in the United States who engage in transactions with those designated may themselves be exposed to sanctions, the Treasury Department said.

With reporting by AP