Iran uses a hidden network of more than 5000 entities linked to the Ministry of Defense to purchase components for missiles, drones, explosives and heavy equipment, bypassing Western sanctions and the US naval blockade. Through just one of these organizations, from January 2025 to June 2026, goods worth $2.3 billion were imported into the country.

This was reported by Reuters on October 29 following a joint investigation with the American-Israeli analytical company 240 Analytics. Journalists studied thousands of Iranian bank and government documents, corporate registries, and international trade data.

The identified organizations operate under the designation MOD, to which a five- or six-digit number is added. All are registered at a single address in Tehran, matching the address of Iran's Ministry of Defense and Armed Forces Logistics.

Most of the structures were actually created in 2013, when the country was under strict international sanctions. However, registration documents list their date of establishment as February 11, 1979 — the day of the Islamic Revolution’s victory.

Some organizations are linked to the Islamic Revolutionary Guard Corps (IRGC) and major funds controlled by the Iranian elite. At the same time, Reuters found no evidence that the identified MOD-numbered structures themselves were separately included in Western sanctions lists.

The basis of the procurement system was settlements through foreign intermediaries. In 97% of the shipments studied, payments were made without cross-border currency transfers. Intermediaries used funds in foreign accounts, including revenues from Iranian oil sales, to pay for goods and shipping to Iran.

According to bank documents, as of the end of 2024, the foreign currency accounts of 36 such organizations held about $1.2 billion. The remaining structures had funds in Iranian currency totaling approximately $1.8 billion.

One of the largest participants in the network was the organization MOD 346428. Over a year and a half, it imported missile fuel components, explosives, aircraft engine parts, electronics, industrial equipment, and heavy trucks.

A significant portion of the goods was declared as originating from China, Russia, Germany, and other countries. According to the investigation, supplies continued even after the start of the US and Israel war against Iran in February 2026.

In particular, Reuters identified five shipments of Russian detonators totaling $7.6 million since January 2025. The last batch, worth $1.9 million, arrived in June 2026. Such devices can be used in missile and drone warheads.

A separate procurement direction is trucks suitable for conversion into mobile missile launchers. From January 2025 to June 2026, MOD 346428 imported 435 Iveco trucks, as well as a large number of Toyota vehicles.

Iveco told Reuters that it applies control measures to prevent supplies of equipment to prohibited recipients, but cannot control resale of vehicles by independent intermediaries. Toyota said it does not do business in Iran and was unaware of the described purchases.

The investigation also revealed a connection between the procurement network and the production of drones for Russia. Among the recipients of imported goods appears the Iranian company Sahara Thunder, which the US in 2024 added to the sanctions list for participating in the production and supply of drones for the Russian army used in the war against Ukraine.

According to documents, back in 2022, through intermediaries in Italy and the UAE, six Iveco Eurocargo trucks were purchased for this company. Journalists were able to trace the supply chain and final recipient from registration and transport documents.

Reuters also established that goods from the European Union continued to enter Iran, including trucks, aviation components, and electronics worth hundreds of millions of dollars. However, the agency cautioned that not in all cases could it independently confirm the origin of the products and their final use. Some equipment may have both military and civilian applications.

A European Union spokesperson said that European authorities are carefully studying information about the strengthening of Iran's missile and drone programs. The US Treasury Department promised to continue applying sanctions against Tehran's military procurement.

Iranian government institutions and companies to which Reuters sent inquiries did not provide substantive comments on the investigation's findings.

Source: Reuters, The Insider, LB.ua.