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November 30, 2023

This month’s newsletter features an in-depth report on the private
companies involved in Iran’s military drone program. While state-owned
companies and the armed forces play leading roles in designing and building
Iranian drones, privately-owned companies are making a valuable but largely
overlooked contribution as well, and their role continues to grow.

The newsletter also includes profiles of several entities positioning
themselves to profit from Iran’s drone industry, as well as news about
renewed U.S. concerns that Iran may send ballistic missiles to Russia, the
unveiling of a new Iranian hypersonic missile, and an Iranian official’s
claim about the country’s growing volume of arms exports. Additions to the
Iran Watch library include documents from the November International Atomic
Energy Agency (IAEA) board of governors meeting, official statements about
clashes between Iran-backed militia groups and U.S. forces in Iraq and
Syria, and recent sanctions targeting members of Iranian proxies and
aligned groups.

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PUBLICATIONS

[4]Drone components

Drone components made by privately-owned Iranian companies. (Credit:
Wisconsin Project compilation)

Report | [5]The Private Companies Propelling Iran’s Drone Industry

Iran’s drone industry appears to be booming, driven partially by the growth
of drone warfare globally in recent years. While state-owned companies and
the armed forces play leading roles in this ecosystem, privately-owned
companies are making a valuable but largely overlooked contribution as
well.

This report reviews the most notable examples of private, knowledge-based
companies working on Iranian drones that have been identified in open
sources. Their roles usually include manufacturing components or offering
research and development services. Many have ties to the Islamic
Revolutionary Guard Corps (IRGC), but these are usually not overt. Evidence
of new entrants points to an expanding role for private companies in the
future.

[6]READ THE REPORT

ENTITIES OF CONCERN

[7]Abdollah Mehrabi, a brigadier general in the IRGC and a key figure in
Iran's military drone program, has connections to several entities who
appear to be positioning themselves for market share in the drone industry.

[8]Bonyan Danesh Shargh

An Iran-based company involved in Iran's space program; reportedly operates
the Khayyam remote-sensing satellite developed in partnership with Russian
companies; issued a public notice in July 2023 changing its stated company
activities to include the production of UAVs and their components.

[9]LEARN MORE

[10]Abbas Abdi Asjerd

Managing director and deputy chairman of the board of directors of Bonyan
Danesh Shargh; with Seyed Mohsen Vahabzadeh Moghadam and Abdollah Mehrabi,
has held shares in Baran Sazan Caspian Company; has served on the board of
directors of three other Iran-based drone companies.

[11]LEARN MORE

[12]Seyed Mohsen Vahabzadeh Moghadam

Chairman of the board of directors of Bonyan Danesh Shargh; has held shares
in Baran Sazan Caspian Company; has served on the board of directors of
three other Iran-based drone companies.

[13]LEARN MORE

IN THE NEWS

[14]Khamenei inspecting a missile

Iran's Supreme Leader Ayatollah Ali Khamenei views a cutaway model of the
Fattah-2 missile's re-entry vehicle. (Credit: Tasnim News Agency)

[15]U.S. Warns Iran Is Weighing Sending Short-Range Missiles to Russia |
Wall Street Journal

November 21, 2023: The United States expressed concern that Iran may
provide Russia with Ababil and Fateh-110 short-range ballistic missiles to
use in Ukraine. Russian Defense Minister Sergei Shoigu had viewed displays
of the missiles during a visit to Tehran in September. U.S. National
Security Council spokesman John Kirby said that, in return, Iran wants to
purchase combat aircraft, radars, and attack helicopters from Russia. He
added that Russia has already helped Iran on its space program and has
offered cooperation on missiles, military electronics, and air defense.

[16]Iran Unveils Fattah-2 Hypersonic Cruise Missile | Janes

November 21, 2023: Iran unveiled the Fattah-2 missile during a visit of the
Supreme Leader to the Islamic Revolutionary Guard Corps Aerospace Force
museum. The missile had a primary rocket motor similar in appearance to
that of the earlier Fattah missile, unveiled in June, but it differed in
its wedge-shaped re-entry vehicle apparently powered by a liquid-propellant
engine. Iranian media stated that the missile's maximum range was 1,500
kilometers.

[17]Iran’s Annual Arms Exports Total $1 Billion | Tasnim News Agency

November 13, 2023: Iran's Deputy Defense Minister Mahdi Farahi said that
his country's arms exports totaled about $1 billion in the year ending
March 2023. Defense Minister Mohammad Reza Ashtiani had said in June that
exports of items developed by Iran's Ministry of Defense and Armed Forces
Logistics (MODAFL) had tripled in the Iranian calendar year ending in
March, compared to earlier years.

FROM THE LIBRARY

At its quarterly meeting, the IAEA board of governors discussed Iran's
ongoing non-compliance with the Joint Comprehensive Plan of Action (JCPOA)
as well as the Agency’s lack of progress in resolving several outstanding
safeguards issues.
* Ahead of the meeting, the IAEA director general circulated two reports
on [18]JCPOA implementation and [19]NPT Safeguards – November 15.
* In his [20]introductory statement, IAEA Director General Rafael Grossi
renewed his condemnation of Iran’s decision to withdraw credentials for
several Agency inspectors – November 22.
* France, Germany, the United Kingdom, and the United States issued [21]a
joint statement criticizing Iran's slow progress in resolving several
outstanding safeguards issues, stating that “Iran cannot continue its lack
of cooperation Board [meeting] after Board [meeting] without bearing
consequences” – November 23.

Iran-backed non-state groups have carried out numerous attacks against U.S.
forces in the Middle East since Hamas's October 7 terrorist attack against
Israel, prompting U.S. forces to retaliate.
* U.S. forces conducted [22]several [23]rounds of strikes against
facilities used by the Islamic Revolutionary Guard Corps (IRGC) and
“Iran-affiliated groups” in Syria – November 8 and 12.
* Later in the month, U.S. forces [24]attacked militants in Iraq who had
launched close-range ballistic missiles at Ain Al-Asad Airbase – November
21.
* The United States [25]sanctioned six members of the Iraq-based Kata'ib
Hizballah as well as the group Kata'ib Sayyid al-Shuhada and its leader –
November 17.

The United States and United Kingdom announced new sanctions against
Iranian proxies and aligned groups.
* The [26]U.S. Treasury Department sanctioned the Muhjat AlQuds
Foundation in Gaza, an organization run by the Palestinian Islamic Jihad
but funded by Iran, as well as a Lebanon-based money exchange company that
Iran uses as a conduit to transfer funds to Hamas – November 14.
* In a [27]coordinated action on the same day, the United Kingdom placed
targeted sanctions on four senior Hamas leaders and two of the group's
financiers – November 14.

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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