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U.S. levies sanctions on suppliers to Iran’s defense industry, including network tied to Shahed drone manufacturer HESA

An Iranian-designed Shahed-136 kamikaze drone in flight. Photo: Getty Images

An Iranian-designed Shahed-136 kamikaze drone in flight. Photo: Getty Images

The United States has imposed sanctions on 10 individuals and entities that, according to the U.S. Treasury Department, procured weapons and components for Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL). Among the recipients of the components, U.S. officials said, was state-owned Iran Aircraft Manufacturing Industrial Company (HESA), which produces Shahed- and Ababil-family drones of the type that Russia has used in its war against Ukraine. HESA had also earlier worked with at least three Russian companies, according to U.S. sanctions records reviewed by The Insider.

The U.S. Treasury Department announced the new restrictions on Sept. 29. The sanctions target individuals and companies in Iran, Hong Kong, China, Pakistan, Saudi Arabia, and Turkey. Washington says those named were involved in procuring weapons, electronics, and components for MODAFL, which oversees enterprises involved in developing ballistic missiles and drones, among other systems.

One of those sanctioned is Seyed Asghar Alizadeh Tabatabaei, MODAFL’s representative in Beijing. According to the U.S. Treasury Department, he coordinated Iranian procurement in China of complete weapons systems and dual-use components.

Electronics for a Shahed manufacturer

A separate part of the sanctions targets Iran’s Kavoshcom Asia R&D Group. The U.S. Treasury Department says the company procured electronic components, including connectors, for HESA. Kavoshcom also supplied electronics to the Shahid Bakeri Industrial Group, or SBIG, which is responsible for Iran’s solid-fuel ballistic missile program.

Kavoshcom director Ali Fotovat Ahmadi and representative Parisa Lali were sanctioned along with the company. The restrictions also target Hong Kong-based EC Mojo Technology and its representative, Li Fen. According to the U.S. Treasury’s Office of Foreign Assets Control, or OFAC, EC Mojo supplied electronic components for Kavoshcom’s procurement activities, while Li Fen sought to evade sanctions and export controls.

HESA has been under U.S. sanctions for years. In 2023, the U.S. Treasury Department said the company manufactured Iranian Ababil- and Shahed-family drones.

HESA’s ties to Russia have also been documented in official sanctions records. In January 2023, the European Union added HESA to its sanctions list, explicitly stating that drones made by the company were being used by Russia in its war against Ukraine.

In September of that year, the U.S. Treasury Department sanctioned three Russian companies for cooperating with HESA: Technical Center Delta-Aero LLC supplied the Iranian manufacturer with propellers and tires for An-140 aircraft that HESA converted for military use, NPP Aerosila conducted ground and flight tests for HESA and facilitated deliveries of auxiliary power units, and NPP Zvezda had contracts to repair An-140 components.

Russia later localized production of Shahed-family drones in Tatarstan. In 2025, The Insider cited data from U.S. research group C4ADS indicating that Moscow had paid Iran for drone-production technology in part with gold bars worth about $104 million.

Pakistani arms manufacturer acted as an intermediary for Iran

A second part of the new sanctions network centers on Pakistani businessman Waseem Pasha Tajammal. He heads Cavalier Group, a private defense conglomerate that manufactures armored vehicles, ballistic protection equipment, and drones, among other products. The U.S. Treasury Department says Tajammal and Cavalier Group acted as third-party intermediaries for MODAFL and used business connections to procure and distribute weapons on behalf of Iran’s Defense Ministry.

The sanctions list includes three entities linked to Tajammal: Pakistan-based Cavalier Dynamics Private Limited, Saudi-based Cavalier Dynamics for Technologies Company, and Turkey-based Cavalier Dynamics Teknoloji Ticaret. The United States imposed the restrictions on the Saudi company in coordination with Saudi authorities.

On its website, Cavalier Group describes itself as Pakistan’s only privately owned diversified defense manufacturer. Its listed business lines include combat vehicles, small arms, armor protection, tactical equipment, and drones.

The new sanctions are part America’s “economic offensive” against Iran

All 10 targets were sanctioned under U.S. Executive Order 13382, which targets proliferators of weapons of mass destruction and the delivery systems for such weapons. The targets’ property and interests in property under U.S. jurisdiction are blocked, and U.S. individuals and entities are barred from doing business with them. Companies owned 50% or more by sanctioned persons are also automatically subject to the restrictions. The Treasury Department additionally warned that foreign financial institutions could face secondary sanctions if they conduct significant transactions on behalf of those on the list.

The new package was imposed as part of Operation Economic Outcast, a broader U.S. campaign of economic pressure on Iran that Treasury Secretary Scott Bessent announced on Aug. 24, describing the initiative as an “economic D-Day.” The U.S. authorities say they intend to cut off channels through which Tehran earns revenue, acquires technology, and evades international sanctions. Washington has imposed restrictions on more than 60 individuals, companies, and vessels and has threatened secondary sanctions against organizations that continue helping Iran circumvent the restrictions.

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