US Dept of Treasury’s OFAC Acts Against Six Entities Engaged in Procuring UAV Components for Iranian Firms

Tel Aviv: The Iranian UAV industry is booming with Russia as its major client. The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has decided to act against six entities based in Hong Kong and the People’s Republic of China (PRC), engaged in the procurement of unmanned aerial vehicle (UAV) components on behalf of OFAC-designated Iranian firm Pishtazan Kavosh Gostar Boshra (PKGB) and its subsidiary Narin Sepehr Mobin Isatis (NSMI).

According to the official release, these entities operate as front companies and facilitate the purchase and shipment of key components for the benefit of PKGB and NSMI, which serve as key suppliers for Iran’s UAV and ballistic missile programs. OFAC previously designated a network of Hong Kong-based companies procuring sensitive Western-origin materials and technology for Iran’s UAV and missile programs on behalf of PKGB in February 2024.

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“Today’s action, which supports President Trump’s maximum pressure campaign on Iran, targets efforts by PKGB to reconstitute its procurement network and continue the procurement of critical parts from foreign suppliers post-designation,” said an official statement of the US treasury.

“Iran continues to try to find new ways to procure the key components it needs to bolster its UAV weapons program through new front companies and third-country suppliers,” said Secretary of the Treasury Scott Bessent.

“Treasury remains committed to disrupting the schemes that enable Iran to send its deadly weapons abroad to its terrorist proxies and other destabilising actors.”

Today’s action was taken pursuant to Executive Order (E.O.) 13382, which targets proliferators of weapons of mass destruction (WMD) and their means of delivery. This action builds on August 28, 2019 and February 2, 2024 actions targeting PKGB’s covert procurement network benefitting Iran’s UAV and ballistic missile production, the statement said.

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According to Israeli sources, the Iranian UAV industry was developed using imported parts that were bought in various nations by a number of “Straw” companies. This to bypass the international sanctions.

According to the Israeli experts, unlike the heavy industry required to produce armoured platforms and ballistic missiles, UAVs frequently rely on civilian components that can be obtained even online. As a result, the Iranian UAV industry expanded quickly. Israeli sources also said that some of the Iranian UAVs have been manufactured based on reverse engineering of American and Israeli UAVs that have been shot down in Iranian airspace.

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Moreover, the Iranian UAV industry is spreading to other countries. In May, 2017, the Iranian press reported on the inauguration ceremony of a UAV factory that was established In Tajikistan. Israeli defence sources said that this plant is currently producing older models of the Iranian “Ababail” UAV.

On May 28, 2022, Iran unveiled an underground UAV base, at an undisclosed location. Among various types of drones and munitions, a new, small, air launched cruise missile was also observed. The new cruise missile is carried by an Iranian copy of the US “predator” UAV.

Israel is constantly monitoring Iran’s efforts to set up factories making weapons in various nations in order to get around international sanctions. The US receives this data on an ongoing basis.

Some of the weapon systems used by the Houthis in Yemen are being assembled in the country. This local operation began with simple items like land mines, but in recent months the scope of local assembly and some production have been increased. According to a report in the Tehran Times, the Iranian production site in Tajikistan is now producing the Ababail -2 UAV. Iran’s cooperation with Tajikistan can serve as a model for West Asia if they abandon their subordination to the US and live in a “fearless world”, as per the report.

-The writer is an Israel-based freelance journalist. The views expressed are of the writer and do not necessarily reflect the views of Raksha Anirveda

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