US Treasury Sanctions Iran-Venezuela Arms Exchange Network

The US Treasury Department announced sanctions against 10 individuals and entities in Iran and Venezuela for their involvement in the trade of military drones and missile programs of the Islamic Republic of Iran. Among those sanctioned are Reza Zarepour Toroghi and Mostafa Rostami Sani, CEO and Chairman of the Board of Pardisan Rezvan Shargh Company, Mohsen Parsa Jam from Ryan Fan Kav Andish Company, along with Seyyed Reza Ghasemi and Farshad Hakimzadeh from Mobin Electro Wave Technology Company. This action by the Office of Foreign Assets Control (OFAC) is described as part of the reimplementation of UN sanctions against the Islamic Republic and Washington's policy to curb the missile and arms capabilities of the Islamic Republic. According to John K. Harley, the Deputy Secretary of the Treasury for Terrorism and Financial Intelligence, the United States holds "Iran and Venezuela accountable for the aggressive and reckless proliferation of deadly weapons in the world" and is committed to cutting off the Iranian regime's military and industrial access to the US financial system. At the center of this sanctions package is the state-owned aircraft manufacturing company "Empresas Aeronautica Nacional" in Venezuela and its president, Jose Jesus Ordaneta Gonzalez, who is accused of purchasing and assembling drones designed in Iran for the Venezuelan armed forces. According to OFAC, Iran and Venezuela have cooperated since 2006 in the transfer of "Mohajer" series drones manufactured by Quds Aviation Industries to Caracas; these drones are rebranded in Venezuela as the (ANSU) series. OFAC states that Empresas Aeronautica Nacional plays a key role in assembling and maintaining Mohajer-2 and Mohajer-6 drones for the Venezuelan army and has facilitated the sale of several million dollars worth of Mohajer-6 combat drones to Caracas. The Mohajer-6 model is a combat drone capable of reconnaissance, surveillance, and targeting, and its Venezuelan version, (ANSU 100), has the capability to carry and launch Iranian-made "Ghaem" guided bombs. Another part of the new sanctions targets three individuals and one company in Iran for attempting to procure chemicals used in the propellant for ballistic missiles for "Parchin Chemical Industries." OFAC states that these individuals have been involved in procuring dozens of tons of "sodium perchlorate" as well as "sebacic acid" and "nitrocellulose" for Parchin; materials used in the production of oxidizers, resins, and solid propellant additives for missiles. Parchin Chemical Industries is a subsidiary of Iran's Defense Industries Organization, which has long been under US sanctions and UN Security Council resolutions as part of the infrastructure of the Islamic Republic's missile program. Washington claims this procurement network helps circumvent international restrictions to supply sensitive materials and advance Iran's ballistic missile program. OFAC has also added two companies and three individuals associated with the "Ryan Fan Kav Andish" holding or "Ryan Fan Group" to the sanctions list; a company that, according to the US, owns a collection of companies active in advanced systems and supplies parts and software for the IRGC's drone and aerospace program. "Mobin Electro Wave Technology" and "Kavoshgaran Aseman Wave Qadir" and their senior managers have been targeted due to ownership and control by the Ryan Fan network and cooperation with the IRGC's drone and missile program. According to this announcement, Ryan Fan and affiliated companies had previously been sanctioned under Executive Order 13382 as supporters of the proliferation of weapons of mass destruction and their delivery systems, and the new action tightens the sanctions around this group. With the imposition of these sanctions, all assets and interests in the property of the named individuals and entities that are in the US or under the control of US persons are blocked, and US citizens and companies are generally prohibited from any transactions with them unless a specific license from OFAC is issued. Foreign financial institutions and individuals also face the risk of secondary sanctions if they engage in "significant" transactions with the sanctioned individuals; including restrictions or prohibitions on opening and maintaining brokerage accounts in the US banking system. The Treasury Department emphasized that the ultimate goal of these sanctions is not "punishment" but to compel the sanctioned actors to change their behavior and comply with international obligations, and a legal process for requesting and reviewing removal from the list is provided.