5,000 SECRET AGENCIES, BILLIONS IN MILITARY IMPORTS: INVESTIGATION REVEALS HOW IRAN CIRCUMVENTS WESTERN SANCTIONS
October 29, 2026
TEHRAN, OCTOBER 29, 2026: Iran has allegedly relied on a concealed network of more than 5,000 defence-linked agencies and overseas intermediaries to procure military equipment and dual-use materials despite extensive Western sanctions and a US naval blockade, according to a Reuters investigation published on Thursday.
The investigation found that the network had facilitated imports worth billions of dollars, including weapons components, explosives, rocket-fuel ingredients, aircraft parts and heavy-duty trucks that could be adapted for military purposes. The findings were based on Iranian banking and government records, corporate registrations, shipping documents and import data.
The agencies reportedly operate under numbered identities beginning with the letters MOD, referring to Iran's Ministry of Defence. Although they appear as separate entities, investigators found that they shared a Tehran address and common registration details. Many were reportedly established in 2013, as Iran faced mounting international sanctions.
A PARALLEL SYSTEM FOR MILITARY PROCUREMENT
According to the investigation, the network uses foreign intermediaries, front companies and overseas financial arrangements to purchase equipment while obscuring the identities of the ultimate buyers. Revenue from oil sales reportedly helps finance these transactions.
In approximately 97 per cent of the shipments reviewed by Reuters, payments were recorded as settled without a direct cross-border currency transfer, making the transactions less visible to conventional financial monitoring systems.
One agency, identified as MOD 346428, reportedly imported approximately $2.3 billion worth of goods between January 2025 and June 2026. The shipments included chemicals used in solid rocket fuel, explosives, aircraft components, precision machinery and heavy-duty vehicles.
Investigators also identified connections between parts of the procurement network and Iran's Islamic Revolutionary Guard Corps (IRGC), its missile and drone programmes, and the drone producer Sahara Thunder, which was sanctioned by the United States in 2024.
INTERNATIONAL SUPPLY CHAINS UNDER SCRUTINY
The import records identified shipments originating in China, Russia, Germany and the United Arab Emirates, among other locations. Goods reportedly entered Iran through maritime routes, freight aircraft and overland transport networks.
However, the recorded country of origin does not, by itself, establish that a government authorised or knowingly supported military procurement. China's foreign ministry said it was unaware of the circumstances described in the investigation and rejected attempts to associate China with the regional conflict. Several other governments and companies contacted by Reuters did not respond to requests for comment.
The investigation also examined links between procurement agencies, Iranian financial institutions and powerful state-connected foundations. Experts consulted by Reuters said the network illustrated how sanctioned governments can use complex corporate structures and alternative payment arrangements to maintain access to restricted goods.
The US Treasury Department maintains that its sanctions are designed to restrict Iran's access to resources for military and weapons programmes. Nevertheless, the reported findings raise questions about the effectiveness of existing enforcement measures and the ability of international procurement networks to adapt to restrictions.
The investigation does not establish that every agency or shipment identified was involved in prohibited activity. Some imported materials have legitimate civilian and industrial applications, while the precise role of individual entities varies.
Nevertheless, the findings offer a detailed account of the alleged infrastructure through which Iran has continued obtaining materials relevant to its missile and drone capabilities, highlighting the difficulties of enforcing economic sanctions across interconnected global supply chains.
