Iran Evades Sanctions Via Secret Network of Over 5,000 Companies
Translated & summarized from Kikar HaShabbat by baba
A Reuters investigation, aided by 240 Analytics, uncovered a secret network of over 5,000 Iranian companies, all beginning with "MOD," that bypasses sanctions to import military hardware. This network has imported at least $2 billion in military supplies since January, utilizing shell companies and cash transactions to avoid detection. The imports include chemicals for rocket fuel, military trucks, and titanium, raising concerns about their use in Iran's military programs and potential links to recent incidents. U.S. officials maintain they are ahead of Iran's evasion tactics.
The story in 6 lines · by baba
- Iran uses a secret network of over 5,000 "MOD" companies to bypass sanctions and import military supplies.
- The network has imported at least $2 billion in military hardware, explosives, and trucks since January.
- Entities share a common address and founding date, but most were established in 2013 to evade sanctions.
- The network reportedly uses proceeds from illicit oil sales and avoids currency transfers to bypass detection.
- Imports include rocket fuel precursors, military trucks, and titanium, raising security concerns.
- A massive port explosion killed 70 people shortly after a shipment of Chinese chemicals arrived.
A secret network of over 5,000 entities, all with names starting with "MOD" (Ministry of Defense), is enabling Iran to circumvent Western sanctions and import military hardware, explosives, and heavy trucks. A Reuters investigation, in collaboration with Israeli-American consultancy 240 Analytics, revealed that this network has imported at least $2 billion worth of military supplies since January. These entities share a common registration address in Tehran and an official founding date of February 11, 1979, though most were actually established in 2013 when sanctions intensified.
The pattern was discovered by Noam Binstock, an analyst at 240 Analytics, who examined leaked documents from Sepah Bank, which handles payroll for the Revolutionary Guards. He identified thousands of accounts with identical naming conventions and a shared 11-digit identification number found on cargo manifests. "The amount of money flowing through these entities is staggering, and no one noticed them before," Binstock stated.
One key entity, MOD 346428, reportedly imported $2.3 billion in military equipment between January and June 2026. This included 886 tons of chemicals from China, a precursor for solid rocket fuel, and 435 Iveco trucks used by the Iranian military as disguised missile and drone launchers, along with thousands of Toyota pickup trucks. Iveco and Toyota stated they have no control over or knowledge of these sales to Iran.
Concerns have been raised about the potential link between these imports and a massive explosion at Bandar Abbas port on April 16, 2026, which killed at least 70 people and injured over 1,200. Reuters could not confirm if the imported chemicals caused the blast. The network also imported significant amounts of titanium from China and nitrocellulose from Russia, with imports dropping after the war began but recovering by May.
"What we have here is the military lifeline of the regime during this conflict and for many years before it," said Miad Maleki, a former senior U.S. Treasury official. "This is the entire ecosystem of the Iranian military's trade business." The network reportedly uses proceeds from illicit oil sales and facilitates transactions "without currency transfer" by using shell companies and cash held in foreign banks to avoid triggering sanctions alarms.
Peter Salisbury, a visiting lecturer at Columbia University, commented, "This looks like an industrial-scale effort to rebuild or expand Iran's existing drone and missile fleet." The investigation also found links between MOD entities and the "Foundation for Preservation of Holy Defense Martyrs' Works," led by senior Revolutionary Guards commanders, including Brigadier General Hassan Shahvarpour, whose units have been implicated in killings and suppressing protests. The Chinese Foreign Ministry stated it was unaware of the situation and opposed malicious attempts to link regional conflicts to China.
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