Iran Built a Secret Network of 5,000 Agencies to Bring In Military Supplies
Reuters linked the buying operation to China, Russia and Germany, with China denying knowledge.
Reuters World News · Crypto hack, Serbia's next prime minister, remembering Patrick StewartReuters, alongside the Israeli-American risk-consulting firm 240 Analytics, identified more than 5,000 agencies that Iran set up to import material for its armed forces to get around Western trade penalties and an American sea blockade.
The agencies work by hiding the real buyer. Iran uses frontmen, people who place orders under their own names, and foreign shell companies, firms registered in other countries that receive goods and pass them along. On paper, a purchase can look like routine business from another country rather than an order for Iran.
Some of the agencies have connections to Iran's Revolutionary Guard and to commercial operations run by the country's elite, according to the investigation.
Reuters reported that supplies originated in many countries, among them sellers in China, Russia and Germany. When asked about the findings, China said it did not know about the operation and objected to connecting it with regional tensions. Reuters said it sought comment from Russia's defense ministry, the German government, the White House and U.S. Central Command, but received no reply.
The size of the system helps it keep functioning. If one agency is identified and shut down, hundreds of others can keep operating. That means each agency has to be found and checked separately, which requires substantial time and resources.
Questions people ask
What is a sanction?
A sanction is a restriction imposed by one country or a group of countries to limit trade, financial dealings, or other activity with another country. In this case, Western sanctions are meant to keep military supplies from reaching Iran. Companies and banks that break them can face fines and loss of access to Western markets.
What is a shell company?
A shell company is a business that exists mainly on paper, often with an address and registration but little visible activity. It can open bank accounts, sign contracts, and receive shipments. That paperwork can make it difficult to see who ultimately controls the goods or money.
What is a naval blockade?
A naval blockade uses warships and patrols to stop vessels carrying particular goods from reaching a country or port. The aim is to intercept cargo at sea before delivery. In crowded shipping lanes, officials must decide which of many ships to stop and inspect.