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The network is run on behalf of the Organization of Defensive Innovation and Research (SPND), a Defense Ministry body established in 2010 which the United States calls a successor to Iran’s alleged pre-2004 nuclear weapons program.
Western governments have sanctioned SPND for years, citing its role in the potential proliferation of weapons of mass destruction.
The network purchases dual-use and military-grade equipment, including in the field of neutronics—a highly sensitive discipline vital to controlling chain reactions in nuclear reactors and, in a military context, producing or controlling neutrons for weapons design, a source familiar with its activities said.
“This network purchases dual-use and military-grade equipment, including neutronics and other sensitive components, on behalf of SPND,” the source said.
Such capabilities can be used for reactor safety, protection from radiation and can have military applications for producing nuclear weapons.
Isatis group and SPND links inside Iran
Inside Iran, the procurement effort is anchored by companies operating under the Isatis name. Corporate and academic records link two SPND personnel, Hadi Zakeri Khatir and Ebrahim Haji-Ebrahimi, to Isatis Danesh Tolid Tajhiz, one of the group’s entities.
Zakeri Khatir, a faculty member at a university linked to Iran's Islamic Revolutionary Guard Corps, serves as vice chairman of the board. Haji-Ebrahimi is listed as a technical engineer with a background in nuclear fusion studies.
Isatis presents itself online as a holding company with multiple subsidiaries in steel, cement and industrial equipment.
However, Iran International found that some of these firms—such as Isatis Foolad Tajhiz and Isatis Siman Tajhiz—remain unregistered in official records, suggesting the size and activities of the firm are not readily transparent.
Isatis Holding did not respond to requests for comment by Iran International.
European hub in Vienna
The network’s overseas hub is Vienna, according to the informed source and company registration documents obtained by Iran International.
Austrian commercial records show that Mohammad-Amin Kharazmi, son of Isatis co-founder Saeed Kharazmi, manages Better Way GmbH, a company registered in 2018 at a residential address in Vienna’s Margareten district.
Mohammad-Amin Kharazmi told Iran International: “I categorically deny any commercial or other activities connected, directly or indirectly, to Iran’s nuclear program.” He said he never had any legal or actual role in those entities.
The same address is used by two other firms—Pioneer Bio Instrument GmbH, a registered medical equipment supplier, and Petrophoenixx Handels GmbH—both with Iranian nationals in management roles.
Neither company responded to requests for comment by Iran International.
Kharazmi said many Iranian firms provide foreign addresses just to exaggerate their profile.
Better Way lists no website or contact details. Its declared business is online retail, with reported assets of roughly €420,000 at the end of 2023. On its own website, Isatis Danesh Tolid Tajhiz names Better Way as a European partner.
Legal cover, strategic depth
Israeli strikes during a 12-day war in June targeted SPND sites and killed multiple nuclear scientists.
The United States has repeatedly sanctioned SPND and affiliated companies, citing their role in “dual-use research and development activities applicable to nuclear weapons and nuclear weapons delivery systems.”
SPND’s work has drawn repeated censure from the International Atomic Energy Agency, and US sanctions target more than 30 of its scientists and multiple front companies.
In 2024, Iran’s parliament passed a law granting SPND official recognition under Iranian law. The act placed the organization directly under the authority of the Supreme Leader, exempted its budget from parliamentary oversight, and allowed it to form academic and commercial entities with legal protection.
Iran’s newly appointed Supreme National Security Council secretary, Ali Larijani, is undertaking consultations as part of his first foreign trip since taking office.
The talks aim to secure backing from key Shia groups for the PMF law project, which seeks to formalize the status of Iran-backed militias integrated into Iraq’s security apparatus, according to the Baghdad-based source.
The source told Iran International that Larijani will meet with Shiite leaders to stress the “necessity” of passing the legislation.
Larijani arrived in Baghdad on Monday as part of his first regional diplomatic tour as Iran's top security chief that also includes Lebanon. He has indicated plans to sign a bilateral security agreement with Iraq and engage various political currents.
The timing of Larijani’s visit follows recent remarks by Iraqi Prime Minister Mohammed Shia al-Sudani, who emphasized that weapons should be controlled by the state and reported efforts to curb Iran-aligned militias’ participation in the June 12-day conflict between Israel and Iran. Iraqi authorities say they have prevented multiple planned attacks by these groups on US military bases.
Since the 2003 US-led invasion of Iraq, the country’s security landscape has been significantly influenced by various militias, many of which maintain close ties with Iran.Among these, the Popular Mobilization Forces (PMF), an umbrella organization composed primarily of Shia militias, was initially formed to combat the Islamic State.
Although integrated into Iraq’s formal security forces in 2016 and legally subordinate to the Iraqi prime minister, the PMF continues to operate with a high degree of autonomy, with many of its factions maintaining strong Iranian connections.
The PMF consists of approximately 67 armed groups, nearly all of which are backed by Iran. These militias play a crucial role in Iraq’s security environment but have also been a source of controversy due to their influence and perceived external alignment.
Efforts to reform the PMF aim to reduce this influence by formalizing their integration under Iraqi state control.
In March 2025, the Iraqi parliament introduced draft legislation seeking to reform the PMF by placing it more firmly under the authority of the prime minister as commander-in-chief, explicitly aiming to limit external influence, including from Iran.
The proposed law also includes provisions such as a mandatory retirement age for senior commanders, potentially replacing key figures with longstanding Iranian ties.
