The US Commerce Department added several entities to its Entity List, restricting their ability to import US goods and technology. Suspicions have arisen that these entities are offering technical assistance to the Iranian regime’s drone program. Among them are:
- Shenzhen Jiasibo Technology Co. (China): This company is accused of being part of a network procuring drone components for an Iranian aircraft company. These components are believed to be used in Iran’s Shahed-series drones, which have been involved in attacks on oil tankers and used by Russia in Ukraine.
- Two UAE-based entities (Khalaj Trading LLC and Mahdi Khalaj Amirhosseini): These are suspected of violating US sanctions on Iran by attempting to export US goods to Iran.
The US action highlights concerns about Iran’s drone program and its use by other actors. The restrictions aim to limit Iran’s ability to develop and acquire drone technology. Previously, the EU and US have imposed the following sanctions on Iran’s drone program:
EU Sanctions
In July 2023, the EU established a new framework for restrictive measures in view of Iran’s military support of Russia’s war of aggression against Ukraine. This new regime prohibits the export from the European Union to Iran of components used in the construction and production of unmanned aerial vehicles (UAVs). It also provides for travel restrictions and asset freeze measures that could be imposed against persons responsible for, supporting or involved in Iran’s UAV program.
On December 11, 2023, the EU Council imposed sanctions against 6 persons and 5 entities involved in Iran’s development and production of UAVs used in Russia’s war against Ukraine. This was the first set of listings under the new EU framework targeting Iran’s military support to Russia.
US Sanctions
On February 2, 2024, the United States sanctioned a network that supplied materials and technology for Iran’s ballistic missile and drone programs. The Treasury Department designated four front companies based in Hong Kong and one based in Iran that were operating as covert procurement entities for Iran’s military organizations, including the Islamic Revolutionary Guard Corps (IRGC).
The US sanctions aimed to disrupt the illicit procurement networks supplying Iran’s drone and missile programs, which have been used to target US personnel and assets in the region, as well as contribute to Russia’s war against Ukraine
