The United States Department of the Treasury has imposed sanctions on ten individuals and entities accused of assisting Iran’s military in acquiring equipment for drone and weapons production. The action, announced on May 9, 2026, targets those allegedly linked to Tehran’s efforts to obtain materials for its Shahed drone program. Among the sanctioned entities is China-based Yushita Shanghai International Trade Co. Ltd., accused of mediating for Iran’s Center for Innovation and Technology Cooperation (CITC).

According to the Treasury statement, CITC had been attempting to purchase portable air defense systems and other weapons from China. The sanctions also cover Dubai-based Elite Energy FZCO, which allegedly transferred several million dollars to a Hong Kong company to support CITC’s procurement efforts. Additional entities include Hong Kong’s HK HESIN Industry Co. Ltd. and Belarus-based Armory Alliance LLC, both identified as intermediaries for CITC.

Individuals sanctioned include Iranian national Mohammadmahdi Maleki, based in Belarus, and Armory Alliance CEO Mohammad Ali Talibov, described as a long-time arms procurer for Iran. Hong Kong-based Mustad Limited was also accused of facilitating multimillion-dollar weapons transactions for Iran’s Revolutionary Guard Corps (IRGC).