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CAATSA and its implications

  • IAS NEXT, Lucknow
  • 15, Feb 2022
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Reference News:-

Underlining that the purchase of S-400 defence system is in New Delhi’s security interest, newly appointed Russian Ambassador to India Denis Alipov said threats of US sanctions against India will not affect the military-technical cooperation between the two countries.

  • However, the US has repeatedly asked India to withdraw from the deal, indicating that the Russian S-400 systems may trigger Countering America’s Adversaries Through Sanctions Act (CAATSA)

What’s the concern?

There has been unease in Washington ever since 2016 when India announced the deal with Russia, which remains New Delhi’s biggest defence partner.

  • Now, the S-400 deal could attract sanctions under US’ CAATSA law. The US has already sanctioned China and Turkey over similar purchases.

What is the S-400 air defence missile system? Why does India need it?

The S-400 Triumf is a mobile, surface-to-air missile system (SAM) designed by Russia.

  • It is the most dangerous operationally deployed modern long-range SAM (MLR SAM) in the world, considered much ahead of the US-developed Terminal High Altitude Area Defense system (THAAD).

What is CAATSA, and how did the S-400 deal fall foul of this Act?

  • Countering America’s Adversaries through Sanctions Act (CAATSA)‘s core objective is to counter Iran, Russia and North Korea through punitive measures.
  • Enacted in 2017.
  • Includes sanctions against countries that engage in significant transactions with Russia’s defence and intelligence sectors.

What sanctions will be imposed?

  1. prohibition on loans to the sanctioned person.
  2. prohibition of Export-Import bank assistance for exports to sanctioned persons.
  3. prohibition on procurement by United States Government to procure goods or services from the sanctioned person.
  4. denial of visas to persons closely associated with the sanctioned person.

Significance of the deal:

The S-400 decision is a very strong example of how advanced our defence and strategic partnership is, and how strong Indian sovereignty is, to choose its international partners, especially when it comes to issues of national interest and national security.