A US senator has said the US government must not impose sanctions on India under the Countering America’s Adversaries through Sanctions Act (CAATSA) for its purchase of S-400 missile weapons system from Russia.

What is the 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.

Could it apply to India?

• India has purchased the S-400 Triumf missile systems, which have advanced capabilities to judge the distance from a target and launch a surface-to-air missile attack.
• Five such systems were bought by India in 2018 for US$ 5.5 billion and in November last year, their delivery began.
• They were deployed in Punjab.
• However, the application of CAATSA is not limited to the S-400, and may include other joint ventures for manufacturing or developing weapons in the future, or any other kinds of major deals with Russia.

Why did the US enact a law like CAATSA?

• 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.

Likely impacts after India’s purchase

• The Biden administration has no firm indication on where it leans on India’s case.
• However, several senators (US parliamentarians) have called upon the Biden administration to consider a special waiver for India.
• This is on account of India’s importance as a defence partner, and as a strategic partner on US concerns over China and in the Quad.
• Other US leaders thinks that giving a waiver to India would be the wrong signal for others seeking to go ahead with similar deals.

Why is the S-400 deal so important to India?

• Security paradigm: S-400 is very important for India’s national security considerations due to the threats from China, Pakistan and now Afghanistan.
• Air defence capability: The system will also offset the air defence capability gaps due to the IAF’s dwindling fighter squadron strength.
• Russian legacy: Integrating the S-400 will be much easier as India has a large number of legacy Russian air defence systems.
• Strategic autonomy: For both political as well as operational reasons, the deal is at a point of no return.

UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now