According to a Reuters investigation published by Yemen Monitor, Iran established a covert international procurement network comprising more than 5,000 entities operating under prefixes referencing "MODAFL," the acronym for Iran's Ministry of Defense and Armed Forces Logistics. The network was created to circumvent Western sanctions and trade restrictions, importing at least $2 billion worth of military hardware, explosives, and heavy vehicles since January 2025.
The report, conducted in cooperation with risk consultancy Analytics-240, analyzed financial, corporate, and import documentation. All covered entities shared a single registered address in Tehran matching the Ministry of Defense. The records linked these procurement bodies to the Ministry of Defense, the Islamic Revolutionary Guard Corps, and semi-governmental economic foundations known as "Bonyads".
Between January 2025 and June 2026, an entity named "MODAFL 346428" imported substantial volumes of missile propellants, explosives, drone and missile parts, and heavy trucks capable of transporting mobile missile launch platforms. Trade logs indicated these shipments entered Iran via land, sea, and air routes, with major shares originating in China, Russia, and Germany.
Records examined in the investigation also registered Iranian military-related imports valued at $27 million originating from the UAE since the outbreak of regional conflict, the majority of which arrived by sea. Front companies and overseas intermediaries known as "trustees" handled procurement using proceeds from illicit oil sales.
Furthermore, the report found that approximately 97% of the analyzed transactions were settled without cross-border wire transfers. Overseas-based Iranian intermediaries executed payments directly through funds held in foreign commercial bank accounts before dispatching goods to Iran.
Sources
- يمن مونيتور · 2026-10-31
