Iran uses commercial firms as fronts to mask missile and drone programs, evading sanctions

FIRST ON FOX — To evade international sanctions, Iran uses its commercial sector as a cover for its military activities, effectively disguising illicit military dealings as legitimate business operations. 

Sources within the Iranian regime, the Islamic Revolutionary Guard Corps (IRGC), and the People’s Mojahedin Organization of Iran (PMOI) have compiled evidence showing how Iran’s civilian workforce unwittingly contributes to Tehran’s military capabilities.

According to a National Council of Resistance of Iran (NCRI) report, civilian companies in oil, gas, petrochemicals, and electronics are vulnerable to Tehran’s exploitation, particularly amid rising Western tensions over Iran’s support for Russia’s war in Ukraine and attacks on Israel.

The NCRI warns that at least three Iranian companies—Kaveh Mobadel Industrial Co. (KMC), Sanaye Garma Gostar (SGG), and Sana Bargh Tavan Co. (SBT Electric)—manufacture components for missiles and drones.

“Iran’s missile program extends beyond known military sites,” Alireza Jafarzadeh, NCRI deputy director, stated. “A complex network of commercial firms masks the true scale of Tehran’s missile and drone programs, enabling sanctions evasion and avoiding accountability.”

While attempts to contact the companies were unsuccessful, sources indicate these firms undergo Ministry of Defense inspections and hold IRGC and regime contracts.

Evidence suggests that while executives are aware of the sanctions evasion, workers remain unaware of the questionable production demands.

The NCRI report reveals that some materials incompatible with declared business activities have entered production lines.

For instance, the report highlights the production of aluminum tanks ostensibly for the dairy industry, noting that aluminum is unsuitable for dairy applications.

Although Iran actively conceals these activities, some manufactured products have likely been detected. 

Sana Bargh Tavan Co., an electronics complex in Pardis Technology Park, reportedly manufactures electronic boards for missiles and drones, disguised as other industrial products for the IRGC.

The facility is reportedly under IRGC control with restricted visitor access.

Iran’s attempts to circumvent sanctions are ongoing. Despite U.S., U.K., and EU sanctions, Iran has continued its activities. 

In October 2023, UN sanctions under Resolution 2231, prohibiting the import/export of missiles, drones, and related technology without UN Security Council approval, expired.

While these sanctions slowed Iran’s progress, they didn’t halt it entirely. 

“Iran’s missile program compensates for its weak air power and air defenses,” Jafarzadeh explained. “It arms regional proxies like Hezbollah and builds missiles capable of carrying nuclear warheads.”

The notes that Iran’s “missile program remains one of the greatest challenges to international nonproliferation efforts,” and targeted sanctions have been implemented.

The U.K. and EU recently announced new sanctions against Tehran for supporting Russia, targeting its shipping industry allegedly used to transport drones and missiles.

Iran denies supplying Russia with missiles or drones, but their use against Ukrainian soldiers and civilians is well documented.

ant