February 26, 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced new sanctions targeting six entities based in Hong Kong and the People’s Republic of China (PRC) for their involvement in procuring unmanned aerial vehicle (UAV) components for Iran. These entities have been linked to Pishtazan Kavosh Gostar Boshra (PKGB) and its subsidiary Narin Sepehr Mobin Isatis (NSMI), both of which play a crucial role in supplying Iran’s UAV and ballistic missile programs.
Crackdown on Iranian Procurement Networks
The targeted entities operate as front companies that facilitate the purchase and shipment of critical UAV components for PKGB and NSMI. OFAC had previously sanctioned a network of Hong Kong-based companies in February 2024 for similar activities. Today’s designations are part of an ongoing effort to disrupt Iran’s ability to reconstitute its procurement network post-designation and continue sourcing key military-grade materials from foreign suppliers.
“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,” stated 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 destabilizing actors.”
Background on PKGB and Its Affiliates
PKGB was first designated under Executive Order (E.O.) 13382 on August 28, 2019, for its ownership and control by Hamed Dehghan, who was also designated for facilitating military-grade electronic component procurement for Rastafann Engineering Company, a firm linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). NSMI, a PKGB subsidiary, was designated on February 2, 2024, for acting on behalf of PKGB.
Hong Kong-Based Front Companies and Facilitators
PKGB has leveraged a network of Hong Kong-based procurement front companies to acquire UAV-related aviation parts worth millions of dollars. Since OFAC’s February 2024 sanctions, PKGB has continued its activities through newly established entities. The newly designated companies include:
- Dingtai Industrial Technology Co Limited (Dingtai): Procured U.S.-origin UAV components such as valve assemblies, radio frequency connectors, and engines for PKGB.
- Yonghongan Trade Limited (Yonghongan): Served as an intermediary for multiple PKGB front companies, facilitating the procurement of Western-origin aircraft components.
- Hong Kong Tianle International Co Limited (Tianle): Assisted PKGB in securing U.S.-origin electronic components and micro servos, falsely listing itself as the buyer.
Additionally, PKGB’s subsidiary NSMI has been receiving UAV-related shipments from Hong Kong and PRC-based entities, including:
- DDC Develop Industry Hong Kong Limited (DDC Develop): Supplied UAV engines to NSMI.
- Shenzhen Zhiyu International Trade Co Ltd (Shenzhen Zhiyu): Exported production and testing equipment to NSMI.
- JP Oriental International Holdings Limited (JP Oriental): Facilitated multiple shipments to NSMI over the years.
All these entities have now been designated under E.O. 13382 for providing financial, material, technological, or other support to PKGB and NSMI.
Implications of the Sanctions
As a result of these designations, all property and interests in property of the designated entities within the United States or under the control of U.S. persons are blocked. Additionally, entities that are owned 50% or more by blocked persons are also automatically sanctioned. U.S. persons are prohibited from engaging in transactions involving these blocked entities unless authorized by OFAC.
Violations of these sanctions could lead to severe civil and criminal penalties for U.S. and foreign individuals and organizations. Financial institutions and other businesses engaging in transactions with designated entities may also face secondary sanctions.
Furthermore, the Bureau of Industry and Security (BIS) under the U.S. Department of Commerce may impose additional export restrictions on transactions involving these designated entities, reinforcing the United States’ commitment to curbing Iran’s UAV and missile proliferation activities.
Continued U.S. Efforts to Counter Iran’s Military Expansion
The latest OFAC designations underscore the U.S. government’s resolve to dismantle Iran’s illicit procurement networks and curb its ability to expand its UAV and ballistic missile programs. This action is part of broader efforts to pressure Iran into compliance with international non-proliferation norms and to prevent its military technology from reaching destabilizing actors in the region.
