CAATSA sanctions waiver intended to wean countries off Russian equipment: WH

Image
Press Trust of India Washington
Last Updated : Oct 06 2018 | 10:00 AM IST

After India formally signs the mega USD 5.4 billion S-400 missile defence deal with Russia, which places it in the bracket of a potential American sanction, the Trump administration said the presidential waiver granted by the Congress in this regard is narrow and intended to wean countries off Russian equipment.

"The (CAATSA presidential) waiver is narrow, intended to wean countries off Russian equipment and allow for things such as spare parts for previously-purchased equipment," a White House National Security Council Spokesperson told PTI Friday, a day after India entered into an agreement to purchase state of the art S-400 missile defense system.

The S-400 missile defence system would give India's defence a cutting-edge security against any missile attack by its enemies.

"India lives in a very turbulent and nuclear-powered region. S-400 provides that assurance and is compatible with its current platform. Friends understand that these discussions with Russia started several years ago hence I do not believe US will impose sanction on India," Mukesh Aghi, president of US India Strategic and Partnership Forum said.

But for the presidential waiver, Countering America's Adversaries Through Sanctions Act or CAATSA sanctions kicks in in the event of a major purchase like S-400 missile defence system. Ahead of the deal, the US had urged India not to purchase S-400. It reiterated Friday.

"The Administration has indicated that a focus area for the implementation of CAATSA Section 231 is new or qualitative upgrades in capability including the S-400 air and missile defense system," the White House NSC Spokesperson said.

Last month, the US had imposed sanctions on China for the purchase of S-400 from Russia. "Our recent action to sanction a Chinese government entity for an S-400 delivery underscores the seriousness of our resolve on this issue," the spokesperson said.

"The waiver authority is not country-specific. There are strict criteria for considering a waiver," said the spokesperson.

The State Department, which is tasked with reviewing the deal and initiated the process of sanctions or waiver under CAATSAA, and then recommend to the president, did not respond to the question on the time frame and the process.

However, one industry source told PTI that the law is ambiguous about "when a waiver is necessary so this can be avoided for years."
According to Rick Rossow, from the Center for Strategic and International Studiesthink tank, said,

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Oct 06 2018 | 10:00 AM IST

Next Story