U.S. Imposes Sanctions On Network Of Suppliers For Iran's Drone Program

The U.S. Treasury Department says the entities sanctioned support the manufacture of Iranian drones. (file photo)

The United States has imposed sanctions on a network of companies and suppliers -- mostly based in China -- that the Treasury Department says support Iranian drone manufacturing.

The fresh sanctions announced on April 19 are aimed at increasing pressure on Tehran to stop supplying drones to Russia, which has used them throughout its war in Ukraine, including for attacks on critical infrastructure supplying electricity and water to Ukrainian citizens.

The U.S. Treasury Department said in a statement that the additional sanctions target one individual -- Iranian national Mehdi Khoshghadam, who is managing director of Pardazan System Namad Arman (PASNA) -- and six entities. PASNA itself has already been designated for sanctions by the department’s Office of Foreign Assets Control (OFAC).

As the head of PASNA, Khoshghadam is “responsible for the company’s sanctions evasion efforts,” the Treasury said, adding that he has “sought a variety of electronic components from foreign suppliers primarily based in the People’s Republic of China (PRC).”

OFAC said it added to its list of designated entities four Chinese suppliers -- Jotrin Electronics, Arttronix International, Vohom Technology, and Yinke Electronics. The latter three are based in Hong Kong.

The front companies in Iran added to the sanctions list are named as Amv AJ Nilgoun Bushehr and PASNA International. OFAC said Khoshghadam has had dealings with all four Chinese suppliers and has used AMV AJ to procure electronic goods for PASNA, including electrical components and connectors, while PASNA International is a Malaysia-based front company that has procured encoder boards, copiers, transmitters, remote controls, optical components, and various crystals.

"The network sanctioned today has procured goods and technology for the Iranian government and its defense industry and [drone] program," said Brian Nelson, undersecretary for terrorism and financial intelligence.

"Treasury will continue to enforce its sanctions against Iran’s military procurement efforts that contribute to regional insecurity and global instability," Nelson said in the statement.

The sanctions freeze any assets that Khoshghadam and the entities hold in U.S. jurisdictions and bar U.S. companies and individuals from any dealings with them.

With reporting by Reuters