Treasury Cracks Down on Iran-Venezuela Weapons Trade

The U.S. Department of the Treasury has intensified efforts to address the illicit arms trade between Iran and Venezuela. On May 12, 2025, the Office of Foreign Assets Control (OFAC) designated ten individuals and entities linked to the trade. This includes a Venezuelan company contributing significantly to Iran’s unmanned aerial vehicle (UAV) exports.

Treasury Targets Iran-Venezuela Weapons Trade

John K. Hurley, Treasury Under Secretary, emphasized the commitment to holding both nations accountable for their weapon proliferation. The recent sanctions build on previous actions taken in late 2023 and are aligned with the U.S. aims to reassess restrictions following the reinstatement of United Nations sanctions against Iran set for September 2025.

Background of the Sanctions

• Entities Designated: Ten individuals and companies involved in weapons trade.
• Main Targets: Empresa Aeronautica Nacional SA (EANSA) and its chair, Jose Jesus Urdaneta Gonzalez.

The sanctions are designed to prevent Iran’s military-industrial complex from accessing the U.S. financial systems. The OFAC’s actions stem from Executive Orders aimed at addressing weapons of mass destruction and other conventional weapon activities.

Details on EANSA and Drone Sales

Since 2006, Iran and Venezuela have collaborated on the sale of Iranian-designed UAVs. The Qods Aviation Industries (QAI) Mohajer-series UAVs were previously known as ANSU-series UAVs in Venezuela. The Mohajer-6 combat UAV, which boasts extensive intelligence, surveillance, and reconnaissance capabilities, forms a key part of this trade.

• Key UAV: Mohajer-6, equipped with advanced military capabilities.
• Coordination: EANSA has played a vital role in assembling and maintaining these UAVs for the Venezuelan military.

Impact of the Sanctions

As a result of these designations, assets of the named individuals and entities within the U.S. jurisdiction are blocked. Any associated organizations operating with 50 percent or more ownership from these blocked entities also face restrictions. Violations of these sanctions can lead to civil or criminal penalties.

The Treasury aims to curtail Iran’s ballistic missile program and prevent further destabilizing actions in the region. This ongoing monitoring and enforcement underscore the U.S. government’s approach to national security and its firm stance against the proliferation of dangerous weaponry.