By Al-Fassel | 2024-04-22

The United States and Britain announced widespread sanctions against Iran's military drone program on April 18, in response to the Islamic Republic's first direct attack on Israel on April 13 with more than 300 drones and missiles.

The European Union (EU) imposed its own set of sanctions on Iran on April 17.

EU foreign policy chief Josep Borrell said there have been limits on exports to Iran by European firms of "the components that allow the production of these kind of arms" since July 2023.

There are plans to review and increase the system of sanctions, he said.

The US sanctions target 16 people and two companies involved in Iran's unmanned aerial vehicle (UAV) program, as well as components for Iran's Shahed variant drones used in the April 13 attack, according to the US Treasury.

"These actors work on behalf of Iran's Islamic Revolutionary Guard Corps Quds Force (IRGC-QF), its UAV production arm, Kimia Part Sivan Company (KIPAS), and other Iranian manufacturers of UAVs and UAV engines," it said.

"As I discussed with my fellow G7 leaders the morning after the attack, we are committed to acting collectively to increase economic pressure on Iran," US President Joe Biden said in a statement.

The new sanctions aim to "degrade and disrupt key aspects of Iran's malign activity, including its UAV program and the revenue the regime generates to support its terrorism," US Treasury Secretary Janet Yellen said.

"We will continue to deploy our sanctions authority to counter Iran with further actions in the days and weeks ahead," she said.

"Over the last three years, we have targeted over 600 individuals and entities connected to Iran's terrorist activity, its human rights abuses, and its financing of Hamas, the Houthis, Hizbullah and Iraqi militia groups," Yellen said.

"We have also vigorously enforced our sanctions," she said, adding that the US actions "make it harder and costlier at every turn for Iran to continue its destabilizing behavior."

Sanctions target 'ringleaders'

In coordination with the US Treasury, the UK government announced its own suite of sanctions against Tehran on April 18, AFP reported.

It censured seven individuals and six companies for enabling Iran to continue its "destabilizing regional activity, including its direct attack on Israel."

British Prime Minister Rishi Sunak said the United Kingdom had sanctioned the "ringleaders of the Iranian military and forces responsible for the weekend's attack."

The US sanctions target executives of Iran-based UAV engine manufacturer, Oje Parvaz Mado Nafar Company which produces, through reverse-engineering, the engines used in Shahed-131 and Shahed-136 UAVs.

Iran-based Aseman Pishraneh Co. Ltd services the small aircraft engine models used in several types of Iranian UAVs, including the Shahed-129 and Mohajer-6.

The IRGC-QF's Department 8000 is tasked with developing drones and providing UAVs and UAV-related training to proxies such as the Houthis in Yemen and Iranian-aligned militias in Iraq and Syria, the Treasury said.

Iranian-manufactured UAVs have been provided to and used by Iran-backed militias across the Middle East, resulting in attacks against US service members, allied forces and maritime vessels in the Red Sea, it said.

KIPAS is an Iran-based firm that has worked with the IRGC-QF to improve its drone program. KIPAS has helped procure UAV components, conducted testing and provided technical assistance to the IRGC-QF, the Treasury said.

Targeting IRGC's revenue streams

In addition to targeting Iran's military drone program, the United States blacklisted five companies providing parts for Iran's steel industry, and an automaker involved in providing "material support" to the IRGC.

The sanctions target Khuzestan Steel Company, one of Iran's largest steel producers, and three subsidiaries of Iranian automaker Bahman Group.

Bahman Diesel Co. produces heavy trucks and other work vehicles for Iran's armed forces that have been used in the IRGC's military operations, including those involving drones and missiles, the Treasury said.

Iran Docharkh Co. sells millions of dollars' worth of motorcycles annually to the Armed Forces Personnel Cooperative Organization (ETKA), which has ties to Iran's missile program and the IRGC.

And Iran Chassis Manufacturing Co. has purchased tens of millions of dollars' worth of goods from Esfahan's Mobarakeh Steel Company, Iran's largest steel producer.

"Iran's metals sector generates the equivalent of several billion dollars in revenue annually, with the majority coming from steel exports," the Treasury said.

The US Department of Commerce's Bureau of Industry and Security is separately imposing new controls to restrict Iran's access to technologies, such as basic commercial grade microelectronics.