CAATSA

CAATSA: Everything you need to know about CAATSA is here.

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Countering America’s Adversaries through Sanctions Act (CAATSA)

CAATSA was enacted in 2017 during the Presidency of Donald Trump with its core objective to counter Iran, Russia and North Korea through punitive measures using economic sanctions.

CAATSA thus essentially lets the US government punish any country that engages in transactions with Russian defence and intelligence sectors.

Under it, 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, and not endangering the alliances it is a part of.

Section 231 of the law notifies 39 Russian entities, including all the major defence companies like Rosoboronexport, Sukhoi Aviation, and Russian Aircraft Corporation MiG, and transactions with whom could invite sanctions.

There are 12 types of sanctions available under the purview of CATS. However, only two of them may impact the dynamics of India-Russia and India-US relations which are:

Prohibition of Banking transactions: India will find it difficult to transact payments to Russia in US dollars for the purchase of S-400 systems.
Export sanction: It has the potential to completely derail the India-US Strategic and Defence partnership, as it will deny the licence for, and export of, any items controlled by the US.

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.

India’s Response to CAATSA

Amid reports of CAATSA sanctions on buying S-400 from Russia, the Ministry of External Affairs (MEA) responded that India and the US have a comprehensive global strategic partnership and India has a special and privileged strategic partnership with Russia.

Further, the MEA outlined that India has always pursued an independent foreign policy which also applies to our defence acquisitions and supplies, guided by our national security interests.

S-400 Air Defence Missile System

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).
The system can engage all types of aerial targets including aircraft, unmanned aerial vehicles (UAV and ballistic and cruise missiles within the range of 400km, at an altitude of up to 30km.
The system can track 100 airborne targets and engage six of them simultaneously.
It represents the fourth generation of long-range Russian SAMs.
The S-400 Triumf air defence system integrates multifunction radar, autonomous detection and targeting systems, anti-aircraft missile systems, launchers, and a command and control centre.
It is capable of firing three types of missiles to create a layered defence.
It can also be integrated into the existing and future air defence units of the Air Force, Army, and Navy.

Importance of S-400 for India:

Cost Effective & Capable: According to a report of the Observer Research Foundation, S-400 presents a good alternative for the Indian Air Force’s long-range air defence requirements, from the standpoint of either capability or cost.
Guarding against Hostile neighbours: S-400 can be effective in protecting against attacks by missiles, or fighter jets from China or Pakistan.
Constraining ability of adversary: The S-400 can constrain the adversary’s air operations even within their own airspace. a capability “unmatched by typical Western systems offered up as analogues.
Threat from China: During the standoff in eastern Ladakh, which began in May 2020 and remains unresolved, China had reportedly deployed its S-400 along the Line of Actual Control.
- Thus, it became important for India to purchase S-400 to boost its armoury.