The U.S. Department of the Treasury has announced two actions under Operation Economic Outcast. One targets companies and suppliers connected to Iran’s automotive, rail, manufacturing, and metals industries. The other targets the A7 Network, a financial network with ties to Russia that Treasury says has provided channels for Iranian sanctions evasion and illicit finance.
Treasury Secretary Scott Bessent tied both actions to Operation Economic Outcast. On the A7 Network, he said Treasury is “dismantling the financial infrastructure that allows Iran and other adversaries to evade sanctions, move illicit funds, and undermine the integrity of the global financial system,” according to the department’s October 1 release.
On the industrial sanctions, Bessent said Iran’s ability “to fund its war machine and inflict terror on the world has been severely diminished thanks to Operation Economic Outcast,” according to a separate release the same day.
Industrial Sectors Targeted
The Office of Foreign Assets Control announced new sectoral sanctions determinations covering Iran’s automotive and rail industries under Executive Order 13902. The department also designated entities under Executive Order 13871, which covers Iran’s iron, steel, aluminum, and copper sectors.
Treasury said Iran’s automotive industry remains a major part of the country’s industrial base and a significant source of revenue. The department identified Iran Khodro Company and SAIPA Iranian Automobile Manufacturing Company as the two companies representing more than 90% of Iran’s domestic auto market.
The designations also include Iran Khodro Diesel, Pars Khodro, Zamyad, Niroo Motor Shiraz Industrial and Manufacturing Company and Niroo Motor Damavand Company.
Treasury separately targeted several foreign companies it said have supplied automotive parts to Iranian manufacturers. Those companies include Indonesia-based PT Golden Motorcycle International, UAE-based Integrated Auto Parts LLC, Türkiye-based Troy Trading Arac Parcalari Sanayi Ve Ticaret Limited Sirketi, and Hong Kong-based Hessenberg Co. and Tanex Global Trading Hong Kong Limited.
Rail, Manufacturing and Metals
Three Iranian rail companies were also designated: the Islamic Republic of Iran Railway Company, Raja Passenger Trains Company and Sherkat-E Rah Ahan-E Khamle-O-Naghle, also known as the Railway Transportation Company.
Treasury said Iran’s rail system has become increasingly important for transporting oil and supporting regional trade.
The action also reaches Iran’s manufacturing and metals industries. Heavy Equipment Production Company, known as HEPCO, was designated under Executive Order 13902, while its China-based subsidiary, HEPCO Shanghai Co., Ltd., was also designated.
Treasury said HEPCO manufactures mining and road construction equipment and that some of its products have been used by Iran’s Islamic Revolutionary Guard Corps-Qods Force and the IRGC in construction projects.
Additional designations involving the metals industry include UAE-based Silver Line Metal Trading LLC, Germany-based Tech-Trade International Impex GmbH and UAE-based Traco International FZE. Treasury said the companies have been involved in supplying materials or supporting Iranian steel producers.
Steel and Oil Network Also Targeted
The industrial action also includes designations involving an alleged network used to facilitate Iranian steel and oil transactions.
Treasury identified Hong Kong-based Iranian and Dominican businessman Ramin Keshvardoust, who it says uses companies and bank accounts to facilitate shipments of Iranian steel and oil worth tens of millions of dollars.
Treasury also designated several companies it says are controlled by or associated with Keshvardoust, including Shanghai Ruimi Import and Export Trade Co., Ltd., M and R Steel Co., Ltd. and Iran-based Fidar Foolad Radman.
Five Hong Kong-based companies — KGT Trading Limited, Dominion Trading Group Limited, Bonasol Group Co., Limited, Meizi Co., Limited, and East Concord Development Limited — were designated under Executive Order 13902 for operating in Iran’s financial sector.
Separate Action Targets A7 Network
In a separate announcement issued the same day, Treasury took action against the A7 Network, a shadow banking network with ties to Russia that the department says has been used by Iran to evade sanctions.
The Financial Crimes Enforcement Network proposed a rule that would prohibit certain fund transfers involving A7 Network Sub-Agents and issued an alert to financial institutions outlining indicators that could help identify suspicious activity involving the network.
OFAC also designated the A7 Network as a significant transnational criminal organization.
Treasury said A7 uses a network of companies in third countries, along with falsified trade documents, import-export records and misleading descriptions of goods, to make illicit or sanctioned payments appear to be legitimate commercial transactions.
According to Treasury, FinCEN’s investigation found that A7 Network Sub-Agents processed more than $17 billion between January 2025 and June 2026. The department also said the network has been used in connection with Iranian oil sales and weapons procurement efforts.
A7 Network Connected to Iran
Treasury said the A7 Network was created and backed by U.S.-sanctioned individuals to facilitate sanctions evasion and has been used by Iranian entities, including the Islamic Revolutionary Guard Corps.
The department said A7 Sub-Agents created pathways for the Central Bank of Iran, the IRGC, and Iran-backed terrorist organizations to move money through the international financial system.
Treasury also said the network has facilitated transactions involving cybercriminals and has been linked to Nobitex, an Iranian digital asset exchange previously designated by OFAC.
The network is led by Ilan Mironovich Shor, whom Treasury described as a sanctioned and convicted fraudster.
Sanctions Take Effect
Under the A7 action, property and interests in property belonging to the network and covered Sub-Agents that are in the United States or controlled by U.S. persons are blocked and must be reported to OFAC.
Treasury said U.S. persons generally cannot conduct transactions involving blocked property unless authorized by OFAC or otherwise exempt. The department also warned that violations can result in civil or criminal penalties and that certain foreign financial institutions could face secondary sanctions for significant transactions involving designated persons.
The two October 1 actions are part of Operation Economic Outcast, which Treasury announced on August 24 as an effort to target Iran’s revenue sources, sanctions-evasion networks and financial facilitators. The department has said the campaign involves coordination with U.S. agencies and international partners.
Provided by Dallas Express
