What are CAATSA Sanctions?

The United States recently imposed sanctions on Turkey under section 231 of the Countering America’s Adversaries Through Sanctions Act, CAATSA. The sanctions were imposed for buying Russian made S400 anti-Missile system.

What is in it for India?

The United States has reiterated its warning to India and other countries upon acquiring equipment from Russia.

Key Features of CAATSA

Section 231 of the CAATSA says that at least 12 sanctions described in section 235 be imposed on a person or country who is knowingly engaged or operates for or on behalf of Russian defence or intelligence sectors.

The following of the 5 sanctions have been imposed from section 235 of the act

  • Prohibition on granting US export licence for goods or Technology transferred.
  • Prohibition on loans or credit by the United States Financial Institutions of more than 10 million USD for 12-month period.
  • Ban on assistance from the United States export-import Bank.
  • Requirement for the United States to oppose loans from International Financial Institutions.
  • VISA restrictions.

What is S400?

It is an air defence Missile system capable of destroying hostile Jets, missiles and drones at a range of 380 kilometres.

India Russia defence relations

The bulk of India’s military requirement is still dependent on Russia. This includes nuclear submarine INS Chakra, Supersonic Brahmos Cruise missiles, kilo class conventional submarine, MIG and Sukhoifighters, Vikramaditya aircraft carrier and MI helicopters.

During Defexpo 2020 India and Russia exchanged 14 Memorandum of understanding. With these agreements the defence trade between India and Russia is to cross 16 billion USD.

Impact on India

CAATSA will dent the Indo-US ties. Also, it will dent the image of United States being a reliable partner while it is projecting India as a key player in its Indo Pacific strategy. The defence trade between India and United States has grown recently. Over the decade the difference trade between the countries has increased to 15 billion USD from almost zero.

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