US imposes sanctions against Arab, Chinese firms linked to Iran arms supply network

The US government on Tuesday imposed a series of sanctions against a network of companies and individuals from Iran, United Arab Emirates, and China accused of supplying components for military drones and missiles manufactured by the Iranian regime.

The measures were announced by the Office of Foreign Assets Control (OFAC) of the Treasury Department, in coordination with the Department of Justice, according to the official statement.

According to the document, this network would have acquired engines, electronic parts and other materials for the Iranian state-owned company Qods Aviation Industries, which produces drones for military use. This network also allegedly facilitated procurement for other entities in the Iranian military-industrial complex, including Iran Aircraft Manufacturing Industrial Company (HESA) and Shahid Bakeri Industrial Group (SBIG).

The action marks the second round of sanctions against Iranian arms proliferators since Trump issued the Presidential National Security Memorandum last February 4, ordering a maximum pressure campaign on Iran.

Among those sanctioned is the Iranian company Rah Roshd, accused of buying motors and electronic components for the Mohajer-6 military drone model, and of selling materials for hundreds of thousands of dollars to the other two military companies.

Simultaneously, the Justice Department also announced criminal charges against Hossein Akbari, 63, and Reza Amidi, 62, both Iranian nationals, and the Iranian Rah Roshd Company (Rah Roshd) in the Eastern District of New York.

The defendants allegedly conspired to provide material support to the IRGC, a designated foreign terrorist organization, and participated in a scheme to acquire US technology for Iranian attack drones. Akbari and Amidi remain at large.

The investigation also revealed that Infracom Communication Networks FZE (Infracom), a company based in Arab Emirates, acted as an intermediary in the purchase of motors and in the relationship with Zibo Shenbo Company, a Chinese component manufacturer that authorized Rah Roshd as its official distributor in Iran. Zibo Shenbo shipped thousands of motors that, according to the US government, ended up in the hands of the Iranian missile program.

Others sanctioned include Abbas Yousefnejad, who works for Rah Roshd and was responsible for purchasing electronic parts such as cables and motors, and three Emirati companies that facilitated international payments between the various players in the network - Diamond Castle, Future Trends and Phenomena International.

With these sanctions, all property and assets of those involved that are in the United States or held by US citizens are frozen. In addition, any company in which these individuals hold at least a 50% interest is also blocked.

The Treasury warned that any person or company carrying out transactions with those sanctioned, even outside the United States, could face legal measures. In addition, exports or transfers of US goods to these individuals are strictly prohibited.

Qods Aviation had already been sanctioned in 2013 for supporting Iran's Ministry of Defense and for its relationship with the Iranian Revolutionary Guard, an elite military corps that the US considers a terrorist organization. The other Iranian military sector companies involved were also sanctioned in previous years.