The United States Sanctions Individuals and Entities for Supporting Iran's Missile and Drone Programs

The U.S. Department of the Treasury announced sanctions against five individuals and seven entities in Iran, China, and Hong Kong related to supporting the missile and drone activities of the Islamic Republic. According to a statement released by the U.S. Treasury on Tuesday, August 1, those sanctioned have played a role in supplying parts for the missile and drone programs of the Iranian Ministry of Defense and Armed Forces Logistics. The Office of Foreign Assets Control of the U.S. Treasury stated that among the sanctioned entities are the Beijing-based Shiny Knights Technology Development Company and Bay Bast Electronic Pars, which have been involved in the procurement of accelerometers and gyroscopes—key components for Iran's ballistic missiles and drones. The Treasury Department indicated that the aim of these sanctions is to 'disrupt Iran's ability to provide these weapons to proxy forces in the Middle East and Russia.' According to Brian Nelson, the U.S. Treasury's Under Secretary for Terrorism and Financial Intelligence, 'The reckless proliferation of Iran's ballistic missiles and drones poses a greater risk of instability and endangers civilian lives around the world.' The Treasury Department noted that these sanctions, which block the assets of the sanctioned individuals and entities and prohibit Americans from doing business with them, reflect 'the ongoing efforts of the U.S. government to reduce Iran's weapon development and maintain international security.' The statement from the U.S. Treasury identified the Shiny Knights Technology Development Company (SNTD) as a front company for the Iranian Ministry of Defense and Armed Forces Logistics, which has purchased electronic parts and equipment on behalf of Iranian clients, including Iran Electronics Industries (SAIran). Seyed Ali Saraj Hashemi, from the SNTD company based in Iran and China, coordinated the company's activities to procure items including accelerometers and gyroscopes, which are considered critical for Iran's ballistic missile program. According to the U.S. Treasury's statement, Hashemi's work at this company required close coordination with an individual named Saeed Hamidi Javar, a procurement representative based in Iran. Javar, as the CEO and Chairman of the Board of Bay Bast Electronic Pars, is a supplier of electronic components with another branch in China. Javar also oversaw purchases by Bay Bast Electronic Pars for the Iranian Aerospace Industries Organization, a subsidiary of the Ministry of Defense and Armed Forces Logistics. Mohammad Abdollahi, the commercial manager and procurement officer of the electro-optical industries of SAIran (SAPA), is another sanctioned individual who reportedly worked closely with an individual named Thomas Ho Ming Tung, based in Hong Kong, to procure optical components on behalf of this company. Other listed companies include Azmoon Pazhoohan Sensor, a manufacturer of testing equipment that designs sensors and tests inertial navigation systems. Ezzatollah Ghasemian Sorbeni, the CEO and Chairman of the Board of this company, which has facilitated procurement for organizations under the Ministry of Defense and Armed Forces Logistics, has also been sanctioned by the new U.S. Treasury measures. The Shenzhen Rayon Technology Company in China is also on this list. This company specializes in inertial navigation and integrated navigation systems with global positioning and has provided products in support of the Shiny Knights Technology Development Company (SNTD) in Beijing, promoting its manufactured items, including those with drone applications, for sale in the Islamic Republic of Iran. The increasing military cooperation of the Islamic Republic with Moscow since the onset of the Russian invasion of Ukraine, especially in the drone sector, as well as the provision of weapons to regional militia groups—including Hamas, Hezbollah, and the Houthis—has prompted the U.S. and its allies to impose several sanction packages against individuals and entities involved in expanding these collaborations. The U.S. has imposed new sanctions against the Islamic Republic in response to 'new nuclear actions' and 'threats to change nuclear doctrine.' The U.S. sanctioned the IRGC's money laundering network and the Iranian Ministry of Defense. The U.S. sanctioned several individuals and companies for 'assisting the Houthis, Hezbollah, and the IRGC.' The EU has also imposed new sanctions against nine individuals and entities, including the commander of the Quds Force and the Minister of Defense. The U.S. sanctioned four entities and one individual active in the Islamic Republic's drone program, and the EU plans to sanction nine individuals and entities associated with the Islamic Republic.