Why in news?
The Biden administration to consider a waiver of sanctions for India for the purchase of the Russian S-400 Triumf missile defence system
- CAATSA is a tough US law which authorizes the administration to impose sanctions against Iran, Russia and North Korea.
- This act prevents trade partners of the United States in entering into bilateral contracts with these three nations.
- In response to Russia’s annexation of Crimea in 2014 and its alleged meddling in the 2016 US presidential elections. The bill was passed on 27 July 2017.
- The Act empowers the US President to impose at least five of the 12 listed sanctions on persons engaged in a “significant transaction” with Russian defence and intelligence sector.
- The Act also built in a safety valve in the form of a presidential waiver.
- Since India has commercial and defensive contracts with Iran and Russia, the CAATSA does have an impact on India’s foreign policy
How it impact India
- CAATSA would impact Indian defence procurement from Russia.
- Apart from S-400s, India has procurements like 1135.6 frigates and Ka-226T helicopters as well as joint ventures like Indo Russian Aviation Ltd, Multi-Role Transport Aircraft Ltd and Brahmos Aerospace.
- Impact on bilateral relationship between the U.S. and India. India remained on course of upgrading the Quadrilateral Security Dialogue and sharing the same vision as the U.S. on the Indo-Pacific construct.
- India is planning an expansion of Iran’s strategically-located Chabahar Port, India began building a railway line between Chabahar port and Zahedan as part of the North-South Transport Corridor. Chabahar port is about 170 km away from Gwadar Port built in Pakistan by China. CAATSA would impact progress in the project.
Impact on U.S
U.S. sanctions on India will be counterproductive in that they will actually benefit Russia, which has already been using the prospect of sanctions to try to convince India that the U.S. is unreliable both as a strategic partner and a defence supplier.
SOURCE - The Hindu, Indian express.
