The United States has imposed sanctions on entities in Iran, Hong Kong, Turkey, and the United Arab Emirates that the U.S. Treasury Department says comprise a network for the procurement of parts for Iran's drone program.
The network has facilitated shipments and financial transactions in support of a critical component used in Iran's Shahed drones, which Iran has been supplying to Russia for use against Ukraine, the Treasury Department's Office of Foreign Assets Control (OFAC) said on September 27.
The critical component is known as a servomotor and is used in Iran’s Shahed-series unmanned aerial vehicles (UAVs). The OFAC said the sanctions took aim at the procurement of servomotors by the Islamic Revolutionary Guards Corps' (IRGC) aerospace organization.
The OFAC said one of the servomotors procured by the network was recovered in the remnants of a Russian-operated Shahed-136 that was recently shot down in Ukraine.
"Iranian-made UAVs continue to be a key tool for Russia in its attacks in Ukraine, including those that terrorize Ukrainian citizens and attack its critical infrastructure," Undersecretary of the Treasury Brian Nelson said in a news release.
Two of the five entities designated for sanctions are Iran-based Pishgam Electronic Safeh Company (PESC) and Hongkong Himark Electron Model Limited. The other three are based in Turkey and the U.A.E., the OFAC said.
PESC has procured thousands of servomotors with one-way attack UAV applications worth hundreds of thousands of dollars for the IRGC, the OFAC said. The company's CEO, Iran-based Hamid Reza Janghorbani, was also designated for sanctions along with Hongkong Himark official Fan Yang, who is based in China.
The OFAC said Fan had represented Hong Kong-based Hongkong Himark in fulfilling servomotor orders worth more than $1 million for PESC. In addition to selling servomotors to PESC, Fan attempted to hide that an Iranian company was behind the shipments by falsifying invoices, the OFAC said.
Hongkong Himark is being designated for having provided or attempted to provide financial, technological, or other support for PESC. The firms based in Turkey and the U.A.E. have been designated for facilitating financial transactions, shipping, and material and technical support for PESC’s servomotor procurement from Hongkong Himark.
The sanctions build on designations announced in November 2022 by the OFAC aimed at Iran's Shahed Aviation Industries Research Center. The Iranian firm is subordinate to the IRGC's aerospace organization and designs and manufactures the Shahed-136, the Treasury Department said.
The sanctions freeze any assets the individuals hold in U.S. jurisdiction and block people in the United States from having any dealings with the entities and individuals named.