The U.S. Sanctions Houthi Financial Network Linked to the IRGC

On Thursday, October 18, the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury sanctioned 18 companies, individuals, and vessels connected to a financial network for the Houthis named "Al-Jamal," which is affiliated with the Quds Force of the Islamic Revolutionary Guard Corps (IRGC). The captains of the illegally transporting oil vessels and the companies operating these ships are included in this sanctioning action. The U.S. Treasury Department's statement indicated that the revenue generated from the "Al-Jamal" network supports the continuation of Houthi attacks in the region, including missile and drone strikes against Israel and commercial vessels in the Red Sea. According to the statement, the "Al-Jamal" network relies on a series of shell companies and several other partners in various sectors to facilitate the sale of Iranian oil and petroleum products for the benefit of the Houthis. Simultaneously, the U.S. also imposed sanctions on three entities and one individual involved in the development and production of long-range offensive drones of the "Garpia" series in Russia. The Garpia, designed and produced in collaboration with Russian defense companies in China, has been used to destroy critical infrastructure in Ukraine, resulting in extensive casualties. According to a statement released by the U.S. State Department, the sanctioned entities and individual played a role in the development and production of military equipment for a Russian defense company that has been sanctioned by the United States, aimed at use by the Russian army in Ukraine. Although the U.S. has previously sanctioned Chinese entities that provided critical resources for the Russian military-industrial base, this is the first sanction targeting Chinese entities directly collaborating with Russian companies to develop and produce weapon systems. The U.S. State Department stated that this action is part of ongoing efforts to disrupt the activities of entities and individuals based in China and Russia aimed at supporting Russia's access to advanced weapon technologies and components. Reuters reported on September 14 that Russia had produced a new suicide drone using Chinese-made components. The report cited two sources from European intelligence and documents seen by Reuters, stating that Russia began producing a new long-range offensive drone named "Garpia-A1" last year using Chinese parts and engines. "Garpia," which means "predator" in Russian, is used against military and civilian targets in Ukraine, causing significant casualties and damage. Over the past two and a half years of its invasion of Ukraine, Russia has attacked various regions of the country with different drones and missiles. The United States claims that the Islamic Republic of Iran, which previously supplied drones to Russia, has now provided ballistic missiles to Russia for attacks on Ukraine. The Islamic Republic, which denied sending Shahed-136 drones to Russia, has also denied sending missiles to Russia this time. New U.S. sanctions against Hezbollah's financial networks in Lebanon and the Syrian government have been reported, indicating that Hezbollah's financial resources are running low amid its conflict with Israel. The White House has warned Iran following new U.S. sanctions against the Islamic Republic. In response to the Islamic Republic's missile attack on Israel, the U.S. imposed new sanctions on Iran's oil and petrochemical industries. The U.S. sanctioned four individuals and several entities linked to Hamas and also targeted Houthi arms supply networks. New sanctions against Islamic Republic agents were imposed due to "interfering in elections" and "targeting officials" in the U.S.