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Current Affairs

CAATSA

Date: 08 March 2022 Tags: India & World

Issue

The US political leaders have been putting pressure on President Biden to widen sanctions on Russia under CAATSA.

 

Background

The CAATSA was introduced during the tenure of former President Donald Trump as a targeted move.

 

Details

  • Countering America's Adversaries through Sanctions Act is a federal law that has been aimed at North Korea, Iran and Russia.

  • The law allows US government to impose sanctions on any country that has "significant transactions with Iran, North Korea or Russia".

  • The law is in existence since 2017 and mostly uses economic & financial penalties against countries that conduct transaction with blacklisted nations.

 

CAATSA and India

  • India has bought S-400 air-defence system from Russia, which violates the laws under the CAATSA regime.

  • This makes India vulnerable to US sanctions. But a feature in the law allows the US president to provide waiver in certain circumstances.

  • Over the past few days, India has already cancelled new order with Russia due to sanctions imposed on Russian banks and also plans to diversify its purchases in future.

 

Impact of CAATSA

  • If Russia becomes target of extensive sanctions, then it will be difficult for India to get access to Russia’s defence technology.

  • The war can potentially make India to pursue alternative technology from countries such as Israel, US, France and Sweden.

 

Target on Russia

  • Russia came under the ambit of the law following its annexation of Crimean peninsula in 2014 and interference in US presidential elections. The US administration is purposefully targeting revenue-generating defence and oil industries of Russia.

  • The Countering Russian Influence in Europe and Eurasia Act of 2017 is a Russia-specific action for its involvement in Syrian war.

 

Countries under CAATSA sanctions

Currently, NATO member Turkey has been sanctioned under the CAATSA regime for conducting business with Russia. It had bought the S-400 air-defence system.