The designations target a web of companies and individuals across China, Hong Kong, Belarus, and Dubai that Washington says have helped Tehran acquire weapons and materials for its Shahed drone and ballistic missile programs.
The U.S. Treasury Department sanctioned 10 individuals and companies spanning the Middle East, Asia, and Eastern Europe on Friday, targeting what officials described as procurement networks funneling weapons and aerospace-grade materials to Iran’s military — including components found inside recovered Iranian attack drones.
The Office of Foreign Assets Control, acting under an executive order targeting weapons proliferators, froze the U.S.-held assets of entities in China, Hong Kong, Belarus, and Dubai and barred Americans from doing business with them. The State Department simultaneously designated four additional entities tied to Iran’s conventional arms activities.
“While the surviving IRGC leaders are trapped like rats in a sinking ship, the Treasury Department is unrelenting in our Economic Fury campaign,” Treasury Secretary Scott Bessent said, referencing the administration’s pressure strategy against Tehran.
The designations fall into two distinct procurement streams that federal officials say have sustained Iran’s weapons development despite years of international sanctions.
Weapons Procurement
At the center of one network is China-based Yushita Shanghai International Trade Co., which Treasury identified as a facilitator for an Iranian government body it said coordinates the country’s technology acquisition efforts abroad — including attempts to purchase man-portable air-defense systems from China.
Dubai-based Elite Energy FZCO transferred millions of dollars to Hong Kong-based AE International Trade Co., prosecutors allege, in support of that same procurement effort. Hong Kong-based HK Hesin Industry Co. and Belarus-based Armory Alliance LLC served as intermediaries, Treasury said, in an effort to conceal the Iranian end-user from suppliers.
Two individuals were also designated: Mohammadmahdi Maleki, an Iranian national based in Belarus and an employee of Armory Alliance, and Mohammed Ali Tolibov, the company’s chief executive, whom Treasury described as a long-standing arms procurement facilitator for Iran operating out of Belarus.
Separately, Hong Kong-based Mustad Limited was designated for allegedly facilitating financial transactions tied to the Islamic Revolutionary Guard Corps’ purchase of millions of dollars’ worth of weapons.
Drone and Missile Components
A second line of action targeted the supply chain for Iran’s Shahed-series drones, the one-way attack UAVs that have been used extensively in the conflict in Ukraine and in regional operations. Treasury said Iran-based Pishgam Electronic Safeh Company procured thousands of servomotors that have been physically recovered from downed Shahed-136 drones for the IRGC’s aerospace self-sufficiency unit.
China-based Hitex Insulation Ningbo Company supplied or attempted to supply millions of dollars’ worth of carbon fiber, honeycomb fabric, and other aerospace-grade raw materials to Pishgam for ultimate use by the IRGC, according to Treasury. Li Genping, identified as Hitex’s legal representative who oversees its sales, purchasing, and financial operations, was also designated.
Broader Pressure Campaign
Treasury described Friday’s action as its sixth round of nonproliferation designations since the United Nations reimposed sanctions on Iran in September 2025 following what officials characterized as Tehran’s significant failure to meet its nuclear commitments.
Officials signaled the campaign would continue to expand, warning that secondary sanctions remain on the table for foreign financial institutions — including those linked to Chinese independent oil refineries known as teapots — that facilitate Iranian transactions. Any vessel or company participating in the illicit trade of Iranian oil also risks U.S. sanctions exposure, Treasury said.
All U.S.-held property and assets of the designated individuals and entities are frozen, and American persons and companies are prohibited from engaging in transactions with them.
By: DNU Staff