The U.S. government announced a major expansion of its sanctions, adding 29 entries (26 entities and three addresses) to the Commerce Department’s Bureau of Industry and Security (BIS)’s restricted entity list. The sanctions target companies in China (15 firms), Turkey, and the UAE, which the U.S. accuses of providing illicit support to Iran’s military and its proxies.
Specifically, the action targets companies facilitating the purchase of American electronic components found in weaponized drones used by groups like the Houthi and Hamas militants.
The companies placed on the entity List, which include firms located in China and Hong Kong, are now restricted from receiving U.S. exports without specific government approval.
The BIS warned that requests for such exports should be presumed denied due to national security concerns.
The Chinese companies were added in two groups based on different evidence: ten Chinese companies were listed for enabling the purchase of components found in weaponized unmanned aircraft systems (UAS) operated by Iranian proxies, such as Yemen’s Houthi militants.
Five additional Chinese companies were sanctioned after Israeli Defense Forces recovered numerous weaponized unmanned aerial vehicles ((UAVs)) operated by Iranian proxies, including Hamas, following the October 7, 2023, attack in Israel. Debris from these UAVs reportedly contained multiple U.S.-origin electronic components.
Among the sanctioned entities are two subsidiaries of the large U.S. chip distributor, Arrow Electronics Inc. (NYSE:ARW): Arrow China Electronics Trading (in Shanghai and China) and Arrow Electronics (Hong Kong). They are accused of involvement in the transfer of U.S. components used in weaponized drones operated by Iranian-backed groups like the Houthis.
“We are in discussion with BIS concerning these listings and will provide further details as soon as they become available,” Arrow spokesperson John Hourigan said in the statement. “In the meantime, we will work to minimize supply chain disruptions to our partners.”
US Treasury Targets Iranian Network Evading Sanctions and Enabling Oppression
