Trump signs executive order to enforce tough sanctions on CAATSA violators

US President Donald Trump on Thursday signed an executive order, paving the way for slapping tough sanctions on countries and foreign entities and individuals violating the Countering America's Adversaries Through Sanctions Act (CAATSA).

CAATSA, a newly-enacted US law that imposed sanctions on Iran, North Korea and Russia, has the potential to affect India's defence purchases as it is planning to buy five S-400 Triumf missile air defence systems from Russia.

As per the executive order released by the White House, the sanctions include prohibitions on certain financial transactions, blocking all property and interests in property, denial of export licences, visas and entry into the US.

It also imposed sanctions on the principal executive officer or officers of sanctioned persons.

Though India's purchase of the Russian missiles would violate sanctions under the CAATSA, the lawmakers have allowed the possibility of a presidential waiver for certain countries on a case by case basis.

In the recent 2+2 Dialogue held in New Delhi, US Defence Secretary James Mattis had said, "The sanctions aren't intended to adversely impact countries like India. They are intended to have an impact the sanctioned country, which is Russia. And so we'll work our way through the waiver decision as the days and weeks proceed, and we'll do that alongside our partner, India, as well."