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June 27, 2023

This month’s newsletter features an analysis of recent trends in U.S. and
EU sanctions against Iran. Whereas in the past these sanctions have focused
heavily on Iran’s nuclear and ballistic missile programs, over the past two
years the focus has shifted dramatically toward targeting human rights
violators and drone-related entities.

The newsletter also includes profiles of several China-based entities
supplying components to an Iranian manufacturer of military aircraft and
drones, as well as news about a British government investigation into
drone-related academic collaboration between UK-based and Iran-based
researchers, a drone factory that Iran is allegedly helping to establish in
Russia, and a new Iranian ballistic missile. Additions to the Iran Watch
library include drone- and missile-related sanctions announcements, other
sanctions actions related to the repression of dissidents, and the latest
International Atomic Energy Agency (IAEA) reports on Iran’s nuclear
program.

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PUBLICATIONS

[4]

A chart showing the breakdown of EU and U.S. designations against Iran
since January 2021. Credit: Wisconsin Project

Article | [5]Drones and Human Rights Now Dominate Sanctions Against Iran

In the past, U.S. and European sanctions against Iran have focused heavily
on its nuclear and ballistic missile programs. But over the last two years,
that focus appears to have shifted. Since U.S. President Joe Biden took
office in 2021, nearly half of all sanctions designations by the United
States and the European Union against Iran have targeted human rights
violators. At the same time, drone-related sanctions have largely
supplanted those on Iran’s missile and nuclear program. This may reflect an
absence of good targets, with most entities involved in Iran’s nuclear and
missile work already subject to sanctions, whereas the drone industry
represents relatively fertile ground for new designations.

[6]READ THE ARTICLE

ENTITIES OF CONCERN

In March 2023, the U.S. Department of the Treasury sanctioned a China-based
network supplying Iran’s military with aerospace components and supporting
its drone program.

[7]Shenzhen Caspro Technology Co., Ltd

A China- and Hong Kong-based company; has shipped hundreds of thousands of
dollars’ worth of aerospace components to [8]Iran Aircraft Manufacturing
Industries (HESA); company officials include Yun Xia Yuan.

[9]LEARN MORE

[10]Yun Xia Yuan

A Chinese national; has facilitated the shipment of components to HESA that
have applications for fixed-wing aircraft, rotary-wing aircraft, and
unmanned aerial vehicles (UAVs); also an employee of [11]S and C Trade Pty
Co., Ltd.

[12]LEARN MORE

[13]Guilin Alpha Rubber and Plastics Technology Co., Ltd

A China-based wholesale supplier of rubber, plastic, and metal products;
has facilitated the sale and shipment of thousands of aerospace components
to HESA; products include 2000-series and 7000-series aluminum alloys and
copper-filled polytetrafluoroethylene (PTFE) rods.

[14]LEARN MORE

IN THE NEWS

[15]

Two buildings in the Alabuga Special Economic Zone, where the White House
claims Iran is helping Russia establish a drone production facility.
(Credit: White House)

[16]UK Probes Claims British Scientists Helped Iran With Suicide Drone
Programme | Financial Times

June 21, 2023: The United Kingdom launched an investigation into
allegations that researchers at British universities have contributed to
research that could aid Iran's military drone program. The investigation
followed a report by the Jewish Chronicle that scientists at universities
including Imperial College London and Cranfield University, which has a
partnership with the UK Ministry of Defence, worked with Iranian
counterparts to publish studies on drone engine performance and aircraft
control systems. At least one of the studies, published in 2019, was
supported by Iran's Ministry of Science.

[17]White House Says Iran is Helping Russia Build a Drone Factory East of
Moscow for the War in Ukraine | Associated Press

June 9, 2023: U.S. National Security Council spokesman John Kirby said that
Iran is helping Russia build a drone factory in the Yelabuga region east of
Moscow, and that the facility could be operational by early 2024. The White
House released a satellite image of the factory's probable location. Kirby
also said that Iran continues to supply Russia with complete drones via a
shipping route across the Caspian Sea.

[18]IRGC Unveils Hypersonic Missile | Tasnim News Agency

June 6, 2023: Iran unveiled a new ballistic missile, called "Fattah," which
the Islamic Revolutionary Guard Corps (IRGC) characterized as a hypersonic
missile. The missile's separating warhead has a solid fueled motor and can
conduct terminal maneuvers. The commander of Iran's missile force claimed
the missile can reach speeds of Mach 13 and has a maximum range of 1,400
km.

FROM THE LIBRARY

The United States and its partners announced additional efforts to counter
Iran’s military programs and support for Russia’s war against Ukraine.
* The European Union adopted its [19]eleventh sanctions package related
to the war in Ukraine. Entities targeted by the new measure include four
companies involved in making Iranian drones and transporting them to Russia
- June 23.
* The United States issued an [20]advisory alert to industry that
explains Iran’s drone program, key products that enable it, and guidance on
how to comply with U.S. export restrictions - June 9.
* In two separate announcements, the U.S. Treasury Department
[21]sanctioned a network of China-based entities supplying Iran’s ballistic
missile program and a [22]Chinese procurement agent supplying both North
Korea and Iran - June 6 and 15.

The U.S. Treasury Department sanctioned Iranian entities for human rights
abuses and attempted acts of terrorism.
* Arvan Cloud, an Iran-based cloud computing services company, and
several of its affiliates [23]were sanctioned for their connection to
Iran’s intelligence services and for restricting Iranians’ free access to
information - June 2.
* Three individuals and one entity connected to the Islamic Revolutionary
Guard Corps Qods Force [24]were sanctioned for participating in terrorist
plots targeting journalists, activists, and former U.S. officials - June 1.

Iran took [25]modest steps to resolve outstanding nuclear safeguards issues
with the IAEA, thereby avoiding punitive action by the Agency’s board of
governors at its quarterly meeting.
* Ahead of the meeting, the IAEA Director General circulated two
quarterly reports on Iran's [26]compliance with the Joint Comprehensive
Plan of Action and on its [27]safeguards obligations - May 31.
* In his [28]opening remarks, the Director General noted some progress in
resolving outstanding issues with Iran since the last meeting, “but not as
much as I had hoped” - June 5.
* A [29]statement by the E3 foreshadowed “further action” if Iran does
not fully comply with the IAEA requests by the next board meeting, while
the [30]U.S. statement did not contain any specific ultimatum - June 7.

Iran Watch is a website published by the Wisconsin Project on Nuclear Arms
Control. The Wisconsin Project is a non-profit, non-partisan organization
that conducts research, advocacy, and public education aimed at inhibiting
strategic trade from contributing to the proliferation of weapons of mass
destruction.

Copyright © 2023 - Wisconsin Project on Nuclear Arms Control

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