Iran has imported $2.3 billion worth of military equipment and related materials through a secret network of procurement agencies since January 2025, using foreign intermediaries and companies to bypass Western sanctions, according to a Reuters investigation.

The investigation identified more than 5,000 agencies linked to Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL). These agencies reportedly use overseas intermediaries, front companies, and financial networks to purchase materials for Iran’s weapons programmes.

Their purchases include explosives, rocket fuel ingredients, weapons components, industrial machinery, and heavy-duty vehicles.

The findings shed light on how Iran has continued replenishing its missile and drone supplies despite international sanctions, military strikes by the United States and Israel, and a US naval blockade.

One Agency Imports $2.3 Billion in Military Hardware

Reuters found that one procurement agency, identified as MOD 346428, imported $2.3 billion worth of goods between January 2025 and June 2026.

The shipments included rocket propellants, explosives, weapons components, aircraft engine parts, and heavy-duty trucks that could be modified to carry mobile missile launchers.

The goods reportedly arrived through land, sea, and air routes, with China, Russia, Germany, and other countries listed as their origins.

The agency’s imports have increased considerably in recent years. Iranian customs figures cited by Reuters show that its purchases rose from $442 million in the 12 months ending March 2023 to $988 million in the following year.

This placed it among Iran’s 10 largest importers.

Reuters conducted the investigation with 240 Analytics, a risk consultancy that examined Iranian banking records, government documents, company filings, and import data to identify the procurement network.

How Iran Uses Secret Companies to Bypass Sanctions

The agencies reportedly share an address in Tehran with Iran’s Ministry of Defense and use names beginning with MOD, followed by five- or six-digit numbers.

Many list February 11, 1979, the date of the Iranian Revolution, as their incorporation date. However, records suggest that several were actually established in 2013, when Iran faced tighter sanctions, falling oil exports, and a weakening currency.

The network relies on foreign intermediaries and shell companies to purchase goods using money generated from overseas oil sales.

Reuters found that most transactions did not involve money directly crossing international borders.

In 97% of the shipments examined, payments were recorded as settled “without currency transfer.” Under this arrangement, intermediaries used money already held in foreign bank accounts to purchase and ship goods to Iran.

The agencies’ identification numbers also appeared on shipping documents, invoices, and bank accounts, helping investigators trace their activities despite the use of front companies.

Imports Include Rocket Fuel Chemicals and Industrial Machinery

The investigation found that Iran’s procurement network imported materials that can be used in missile and drone manufacturing.

Between January and April 2025, MOD 346428 imported 886 tonnes of chemicals into Bandar Abbas from China.

These included sodium chlorates and other perchlorates, which can be used in producing solid rocket fuel.

The agency also imported precision industrial equipment, including computer-controlled lathes, electron-beam furnaces, and particle accelerators.

Although these machines have civilian industrial uses, they can also support the manufacturing of military equipment, including missile and drone components.

The purchases also included hundreds of Iveco trucks and thousands of Toyota Hilux and Land Cruiser vehicles.

Iran’s military has displayed similar vehicles in military parades and uses them to transport equipment and, in some cases, carry weapons systems.

Reuters used satellite images, social media footage, and vehicle identification numbers to trace some imported Iveco trucks to a customs facility near Tehran.

Iveco said it had no control over products exported by third parties with which it had no direct contractual relationship. Toyota said it did not conduct business in Iran and was unaware of the purchases identified in the investigation.

Iran Continued Military Imports During the War

Iran’s procurement operations continued after the conflict began on February 28, 2026, despite the US naval blockade.

Import volumes initially fell 47% to $54 million in March compared with the previous month. However, they recovered to $77 million by May, according to data reviewed by Reuters.

A shipment received in June included $1.9 million worth of Russian detonators, which can be used to trigger explosives in missile and drone warheads.

Reuters identified five similar shipments from Russia since January 2025, with a combined value of $7.6 million.

The investigation also found that Iran’s military purchased $27 million worth of goods since the war began that were recorded as originating in the United Arab Emirates (UAE). Almost all these shipments arrived by sea.

The latest identified shipment from the UAE was listed as electronics and arrived on June 27, nine days after the United States announced a suspension of its naval blockade. The blockade resumed in mid-July, according to Reuters.

US Experts Warn of Iran’s Military Supply Network

Miad Maleki, a former senior US Treasury official involved in designing Washington’s sanctions programme against Iran, described the procurement network as an important part of the country’s military trade infrastructure.

He said the system allowed Iran to use revenue from overseas oil sales to purchase military equipment while limiting the need for international money transfers.

Other weapons and sanctions experts who reviewed the findings said several imported materials could support Iran’s missile and drone programmes, although some also have civilian applications.

The investigation also found that Western governments had not specifically designated the numbered procurement agencies as sanctioned entities, despite broader sanctions against Iran’s military.

The US Treasury Department said Washington had “severed the regime’s economic lifelines” and would continue efforts to stop Iran from financing its military and weapons programmes.

Iranian government bodies and companies contacted by Reuters did not respond to detailed questions. China’s Foreign Ministry said it was unaware of the reported activities and opposed attempts to link regional conflicts to China.

Reuters said it cross-checked some of approximately 19,000 import records against shipping documents, social media footage, and state media reports. However, it noted that some records lacked detailed descriptions and that certain shipment origins and contents could not be independently verified.