Context
Recently, US Democratic Representative stated that the US government must not impose sanctions on India under the Countering America’s Adversaries through Sanctions Act (CAATSA) for its purchase of the S-400 missile weapons system from Russia.
About CAATSA
- CAATSA is a law that came into effect in the US in 2017, meant to punish countries having deep engagements with Russia, North Korea, and Iran using economic sanctions.
- It said countries having a “significant transaction” with Russian intelligence and military agents will be subject to at least five kinds of sanctions.
- Ordinary transactions will not invite sanctions, and the decision of who has sanctions imposed on them comes down to the interpretation of “significant transaction”.
- This is one of the various waivers or exemptions mentioned, such as the transaction not affecting US strategic interests, not endangering the alliances it is a part of, etc.
S-400 missile weapons
- The S-400 is a mobile long-range surface-to-air missile (LR-SAM) system developed by Almaz-Antey, a Russian state-owned enterprise.
- It possesses the capability to take down multiple aerial targets including stealth fighter jets, bombers, cruise and ballistic missiles, and even unmanned aerial vehicles (UAVs).
- It possesses four different kinds of missiles that can engage beyond visual range (BVR) targets up to a range of 400 kilometres and it also carries two separate radar systems, which can detect aerial targets to a range of 600 kilometres and can simultaneously engage 80 aerial targets.
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Section 231 of the law
- It notifies 39 Russian entities, including all the major defence companies like Rosoboronexport, Sukhoi Aviation, Russian Aircraft Corporation MiG, transactions with whom could invite sanctions.
- Almaz-Antey Air and Space Defence Corporation JSC, who have made the S-400 system, are in this list.
Sanctions applied
- In 2020, Turkey was sanctioned for its purchase of the S-400 system. Turkey had ignored repeated reminders to not go ahead with the purchase, and was, therefore, sanctioned.
Sections
- 12 sanctions: It contains 12 types of sanctions. Of these, 2 sanctions may impact India’s relations with either Russia or the US. These are-
- Prohibition of Banking transactions: India would not be able to make payments in US Dollars to Russia for the purchase of the S-400 systems.
- Export sanctions: As it will deny the licence for, and export of, any items controlled by the US to the sanctioned person.
- It has the potential to completely derail the India-US Strategic and Defence partnership.
How CAATSA came into effect?
- The US flagged issues of Russia’s alleged interference in the 2016 Presidential elections, and its role in the Syrian war as some of the reasons for punishing engagement with it.
- EU countries that had even more significant ties with Russia for oil and gas supply before the Ukraine-Russia conflict in 2022, had also criticised CAATSA.
Countries facing sanctions
- The US has placed sanctions on China and Turkey for purchase of the S-400.
- The sanctions included denial of export licences, ban on foreign exchange transactions, blocking of all property and interests in property within the US jurisdiction and a visa ban.
