US Sanctions 5 Foreign Entities for Allegedly Aiding Iranian Military Drone Program

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The Treasury said the action was taken pursuant to Trumpโ€™s Feb. 4 national security memorandum.

The Treasury Department sanctioned five entities and one individual based in Iran, China, Taiwan, and Hong Kong on July 31 for allegedly aiding Iranโ€™s state-owned military aircraft and drone company to procure technology.

The departmentโ€™s Office of Foreign Assets Control (OFAC) said its sanctions target Javad Alizadeh Hoshyar and five foreign entities linked to the Iran Aircraft Manufacturing Industrial Company (HESA).

HESA, a U.S.-sanctioned Iranian military aircraft manufacturer, operates as a subsidiary of Iranโ€™s Ministry of Defense and Armed Forces Logistics. It produces the Ababil drone series, which is used by Iranโ€™s Islamic Revolutionary Guard Corps (IRGC), a terrorist organization.

The sanctioned entities include Iran-based Control Afzar Tabriz Co Ltd., which Hoshyar allegedly used to procure computer numerical control machines and related equipment for HESA. Those machines are used to create components for commercial and military aircraft, according to OFAC.

OFAC also sanctioned Clifton Trading Limited, a Hong Kong-based company that allegedly acted as an alternative consignee and intermediary in Control Afzarโ€™s procurement of those machines for HESA.

Other sanctioned entities include Mecatron Machinery Co Ltd. and Joemars Machinery and Electric Industrial Co Ltd.โ€”both are Taiwan-based companies accused of aiding Control Afzar circumvent U.S. sanctions to ship machines to Iranโ€”as well as Changzou Joemars Industrial Automation Co Ltd., a subsidiary of Joemars, located in China.

John Hurley, the Treasuryโ€™s under secretary for terrorism and financial intelligence, said the sanctions are part of the departmentโ€™s efforts to disrupt Iranโ€™s ability to undermine regional stability.

โ€œIran 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,โ€ Hurley said in a statement.

The sanctions will freeze all assets of the designated companies and the individual, within U.S. jurisdiction, and prohibit U.S. persons from conducting any transactions with them unless permitted by OFAC.

OFAC stated that the action was taken pursuant to President Donald Trumpโ€™s Feb. 4 national security memorandum aimed at imposing a โ€œmaximum pressureโ€ campaign to deny Iran all paths to a nuclear weapon.

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