By Pishtaz | 2025-03-07

The United States has sanctioned six companies based in China and Hong Kong for their engagement in procuring drone components on behalf of Iranian companies.

The February 26 action is part of a renewed maximum pressure campaign on the Iranian regime, US State Department spokeswoman Tammy Bruce said in a statement.

It aims to disrupt efforts by the previously sanctioned Iranian firm Pishtazan Kavosh Gostar Boshra (PKGB) to reconstitute its procurement network and continue obtaining critical parts from foreign suppliers.

PKGB operates a network of Hong Kong-based procurement front companies that facilitate the purchase and shipment to Iran of aviation parts with unmanned aerial vehicle (UAV) applications, the US Treasury said.

These are valued in millions of dollars, it said.

The front companies for PKGB and its subsidiary, Narin Sepehr Mobin Isatis (NSMI), supply the Iranian regime’s drone and ballistic missile programs.

Based in China and Hong Kong, they facilitate the purchase and shipment of key components for the benefit of PKGB and NSMI, the Treasury said.

In February 2024, the United States sanctioned a network of Hong Kong-based companies procuring sensitive Western-origin materials and technology for Iran’s UAV and missile programs on behalf of PKGB.

Since then, PKGB has used new companies to continue its procurement activities, the Treasury said.

"Iran continues to try to find new ways to procure the key components it needs to bolster its UAV weapons program through new front companies and third-country suppliers," said Treasury Secretary Scott Bessent.

"We will continue to act against the complex schemes Iran employs to conceal its acquisition of sensitive technology for its missile and UAV programs," Bruce said.

Iranian regime arms Houthis

The Iranian regime is a key backer of the Houthis, supplying them with weapons they have used to carry out attacks on international shipping in the Red Sea, even as the Iranian people suffer amid an economic crisis.

The Houthis claim their attacks support the people of Gaza, but ample evidence indicates their maritime disruptions are making the situation worse for the Palestinian people.

The group also has been accused of attempting to use public sympathy for the Palestinian cause as a smokescreen for its own failures in Yemen.

Recent seizures of ammunition, explosives, detonators, drone engines and control devices from vessels in the Red Sea and at a Yemeni port show the Houthis are continuing to receive lethal weapons.

Some are likely being smuggled to the Houthis via Chinese ships, which the Houthis have promised safe passage in the Red Sea, sources said.