"Kongra-Gel uses its network across Europe to produce, transport, and traffic opiates and cannabis," the Treasury Department said, alleging the group, which has been on the US terrorist list since 2001, uses the proceeds to buy weapons.

"We are striking at the heart of Kongra-Gel with this action against its founders, key leaders and sources of funding," said Treasury's sanctions czar David Cohen.

He said the move would "suppress the flow of illicit narcotics proceeds to this organization in support of its terrorist activities."

The five leaders listed including Kongra-Gel founders Cemil Bayik and Duran Kalkan.