OFAC Sanctions Iran Military Procurement Network Under Operation Economic Outcast

OFAC imposed blocking sanctions on five individuals (two in Iran, two in China, one in Pakistan) and five entities (one each in Iran, Hong Kong, Pakistan, Saudi Arabia and Türkiye) under its Non-Proliferation (E.O. 13382) sanctions program for procuring weapons and weapons components for Iran's Ministry of Defense and Armed Forces Logistics (MODAFL). The individuals include MODAFL's representative in Beijing, who coordinates procurement of finished weapons systems and dual-use components in China, and the director and a representative of Iran-based Kavoshcom, which supplied electronics to an aircraft and UAV manufacturer and to a solid-fuel ballistic missile subordinate. They also include the China-based representative of Kavoshcom's Hong Kong electronics supplier and the chairman of a Pakistani defence company acting as a third-party intermediary for MODAFL. In a simultaneous action, the U.S. Department of State imposed blocking sanctions on three entities (two in Russia, one in Iran) under its Iran Conventional Arms sanctions program (E.O. 13949, section 1(a)(iii)) for activity that materially contributes to the proliferation of arms and related materiel to or from Iran, including violations of the renewed UN measures. The Russian entities are an aircraft manufacturer that supplied Yak-130 jets and related equipment to Iran, with nearly all of 24 reportedly contracted aircraft now delivered, and a shipping company whose vessels carried Iranian close-range ballistic missiles to Russia in 2024 and air defense vehicles in late 2025. The Iranian entity is an airline affiliated with the Iranian Air Force that has helped transport arms and related materiel. All three were previously designated under other programs (the Russian entities under E.O. 14024, the airline under E.O. 13902), so on the SDN list they appear as amendments to existing entries. The designations were announced alongside Treasury's action on Iran's military procurement networks under Operation Economic Outcast.