What is “CAATSA” or Countering America’s Adversaries Through Sanctions Act?

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Ever since India has formally signed up for the S-400 purchase with Russia in 2018, it has been under the threat of US sanctions. Especially under the US’s Countering America’s Adversaries Through Sanctions Act (CAATSA).

 About CAATSA:

• Countering America’s Adversaries Through Sanctions Act(CAATSA) is a US federal law enacted in 2017. It imposed sanctions on Iran, North Korea, and Russia.
• Purpose: The CAATSA Act empowers the US President to impose sanctions against certain countries. The imposition of sanctions take place on countries that engage in a significant transaction with the Russian defence and intelligence sectors.
• The “ultimate goal” of CAATSA “is to prevent revenue to the Russian Government.

 Imposition of type of sanctions under the CAATSA act:

• Firstly, prohibition on loans to the sanctioned country
• Secondly, prohibition of Export-Import bank assistance for exports to sanctioned persons
• Thirdly, prohibition on procurement by the US Government to procure goods or services from the sanctioned persons
• And lastly, denial of visas to persons closely associated with the sanctioned persons

Exemptions: The US President could waive off the sanctions if:

• A Country is taking steps to reduce its dealings in terms of Russian weapons purchases or
• A Country has better cooperation with the US on other security matters that are critical to the US strategic interests or
• If the Russian weapons to the country do not significantly increase the risk to United States defence systems and operational capabilities.

Source: The Hindu