April 1, 2025
In a continued effort to counter Iran’s military expansion and support for armed groups, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), in coordination with the Department of Justice, has imposed sanctions on a network of entities and individuals involved in procuring components for Iran’s unmanned aerial vehicle (UAV) program. The targeted network, comprising six entities and two individuals based in Iran, the United Arab Emirates (UAE), and China, has played a key role in supplying Qods Aviation Industries (QAI), a primary manufacturer of Iranian UAVs.
This marks the second round of sanctions against Iranian military suppliers since President Biden issued National Security Presidential Memorandum 2 on February 4, 2025, as part of a broader strategy of maximum pressure on Tehran.
A Network of Military Procurement
The sanctioned network has provided crucial components not only to QAI but also to other key Iranian defense firms, including Iran Aircraft Manufacturing Industrial Company (HESA) and Shahid Bakeri Industrial Group (SBIG), both of which are integral to Iran’s defense and missile programs.
“Iran’s proliferation of UAVs and missiles—both to its terrorist proxies in the region and to Russia for its use against Ukraine—continues to threaten civilians, U.S. personnel, and our allies and partners,” said Secretary of the Treasury Scott Bessent. “Treasury will continue to disrupt Iran’s military-industrial complex and its proliferation of UAVs, missiles, and conventional weapons that often end up in the hands of destabilizing actors, including terrorist proxies.”
Legal Action Against Key Figures
Alongside the sanctions, the Department of Justice has announced criminal charges against Iranian nationals Hossein Akbari and Reza Amidi, as well as the Iran-based company Rah Roshd Company, in the Eastern District of New York. The charges include conspiring to provide material support to the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization, and illegally procuring U.S. technology for Iran’s drone program. Both Akbari and Amidi remain at large.
“The Justice Department will continue to put maximum pressure on the Iranian regime,” stated Sue J. Bai, head of the Justice Department’s National Security Division. “We will relentlessly dismantle illicit supply chains funneling American technology into the hands of Iran’s military and terrorist organizations and pursue those complicit in operations that threaten our country.”
The Role of Rah Roshd and Its International Partners
Rah Roshd International Trade Exchanges Development, a key player in this procurement network, has supplied QAI with servo motors and other crucial UAV components. The firm has also facilitated transactions for HESA and SBIG, solidifying its role in Iran’s military-industrial complex.
Several foreign companies and individuals have been implicated:
- UAE-based Infracom Communication Networks FZE: Facilitated the procurement of motors for Rah Roshd.
- China-based Zibo Shenbo Machinelectronics Co Ltd: Supplied tens of thousands of motors to Rah Roshd for use in SBIG’s ballistic missile program.
- UAE-based Diamond Castle Electronics Trading LLC and Future Trends Goods Wholesalers LLC: Acted as financial intermediaries for Rah Roshd’s international transactions.
- UAE-based Phenomena International General Trading LLC: Assisted Infracom in procuring electronic components.
Sanctions and Their Implications
The sanctions imposed under Executive Order 13382 block all U.S.-based property and assets belonging to the designated individuals and entities. U.S. persons are prohibited from engaging in any transactions with these designated actors. Additionally, foreign individuals or businesses that facilitate dealings with these entities risk exposure to secondary sanctions.
The U.S. government has reiterated that violations of these sanctions could result in severe civil or criminal penalties. The Department of Commerce’s Bureau of Industry and Security may impose additional restrictions on exports, reexports, or transfers of U.S.-controlled technology linked to the sanctioned entities.
Broader Strategic Implications
This latest round of sanctions underscores Washington’s intensified efforts to disrupt Iran’s military supply chains. The Biden administration’s approach reflects growing concerns over Tehran’s continued weapons proliferation, particularly as Iranian drones and missiles have been deployed by Russia in its war against Ukraine and by Iranian-backed groups in the Middle East.
As tensions continue to rise, these sanctions signal a firm stance against Iran’s military ambitions, while also serving as a warning to international entities engaged in illicit arms trade. The U.S. remains committed to countering threats posed by Iran’s military-industrial network and ensuring that American technology does not contribute to destabilizing global security.
