Iran has reportedly developed an extensive Iran sanctions evasion network involving more than 5,000 numbered agencies to procure military equipment and sustain its weapons programmes despite Western restrictions and a US naval blockade. An investigation based on financial records, shipping documents and corporate filings estimates that the network imported at least $2 billion in hardware, explosives and heavy-duty vehicles since January 2025.
The agencies reportedly operate under names beginning with MOD, referring to Iran’s Ministry of Defence. Many share the same registered address as the Ministry of Defence and Armed Forces Logistics in Tehran. Although their records indicate an establishment date of February 11, 1979, most were reportedly created in 2013, when Iran faced increasing economic pressure from international sanctions.
How the Secret Procurement Network Operates
The agencies allegedly work through overseas intermediaries, frontmen and shell companies, allowing transactions to take place without directly transferring money across international borders.
According to the investigation, 97% of the reviewed shipments were settled without currency transfers. Foreign-based intermediaries reportedly used funds held in overseas banks to purchase equipment and arrange deliveries to Iran.
One agency, identified as MOD 346428, reportedly imported $2.3 billion worth of military hardware between January 2025 and June 2026. Its purchases included rocket propellant ingredients, explosives, aircraft components, precision machinery and heavy-duty trucks.
The materials could support the production of ballistic missiles and drones, including Shahed-series unmanned aircraft. Experts consulted during the investigation said several imported products also have legitimate civilian applications.
China, Russia and European Supply Routes
Shipping and import records reportedly identified China, Russia, Germany and other European countries among the declared origins of goods entering Iran.
Imports included titanium, chemicals used in rocket propellants, detonators, aircraft engine components and industrial machinery. Heavy vehicles, including Iveco and Toyota models, also appeared in procurement records.
The investigation tracked some imported trucks through vehicle identification numbers and other records. However, it could not independently establish the military destination of every shipment.
Companies and governments named in the investigation offered varying responses. China’s Foreign Ministry rejected what it described as attempts to link the country to regional hostilities. Iveco and Toyota said they were not involved in or aware of certain reported transactions. Several other entities did not respond to requests for comment.
Sanctions Enforcement Faces New Questions
The investigation found no evidence that the numbered agencies themselves had been designated by Western governments, despite their alleged links to Iran’s military procurement system.
A US Treasury spokesperson said Washington had disrupted Iran’s economic lifelines and remained ahead of attempts to evade sanctions.
The findings highlight the challenges of enforcing international restrictions when procurement networks rely on intermediaries, dual-use goods and complex financial arrangements.
Relevant Link: US Department of the Treasury
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