Iran has been using its commercial sector as a cover to develop ballistic missiles, in an attempt to evade international sanctions. The National Council of Resistance of Iran (NCRI) has reported that civilian companies involved in oil, gas, petrochemicals, and electronic components are unknowingly involved in Tehran’s military activities. Companies such as Kaveh Mobadel Industrial Co., Sanaye Garma Gostar, and Sana Bargh Tavan Co. have been identified as producing items for missile and drone programs. Despite evidence that company executives are aware of the illicit activities, the workers remain uninformed.
The Iranian regime has built a network of commercial companies to conceal the extent of its missile and drone programs and evade sanctions. Some companies have been found producing items incompatible with their business platforms, such as aluminum tanks supposedly for the dairy industry. The Sana Bargh Tavan Co. was discovered manufacturing electronic boards for missiles and drones under the guise of other industrial products for the Islamic Revolutionary Guard Corps. Iran’s attempts to bypass sanctions have not gone unnoticed, as the regime continues to develop its nuclear and missile programs despite heavy sanctions from the U.S., U.K., and the European Union.
In October 2023, U.N. sanctions on Iran expired, allowing it to import or export missiles, drones, and related technology without prior U.N. Security Council approval. While the sanctions had slowed Iran’s missile and drone programs, they did not stop them completely. The regime has expanded its missile program to compensate for its limited air power and defense capabilities. This program serves to arm regional proxies like Hezbollah and develop missiles capable of carrying nuclear warheads. The U.S. has identified Iran’s missile program as one of the greatest challenges to international nonproliferation efforts and has imposed targeted sanctions in response.
The U.K. and the EU recently announced fresh sanctions on Iran over its support for Russia, targeting its shipping industry allegedly used to transfer drones and missiles. Iran has denied sending missiles or drones to Russia but has been documented using Iranian-made drones in Ukraine. Despite the sanctions and efforts to conceal its activities, Iran continues to advance its military capabilities through its commercial sector. The Iranian regime’s reliance on its missile program and support for regional proxies pose significant challenges to international security and nonproliferation efforts. The situation remains tense as tensions with the West escalate over Iran’s involvement in conflicts in the Middle East and its support for Russia in the war against Ukraine.
