Countering America’s Adversaries Through Sanctions Act (CAATSA)

Subject: IR

Context:

As India planned to finalise jet fighter deal with Russia, U.S announced that sanctions for the purchase of Russian arms has not changed under CAATSA

Concept:

• The Countering America’s Adversaries Through Sanctions Act (CAATSA) aims at taking punitive measures against Russia, Iran, and North Korea.
• Title II of the Act primarily deals with sanctions on the Russian oil and gas industry, defence and security sector, and financial institutions, in the backdrop of its military intervention in Ukraine and its alleged meddling in the 2016 US presidential elections.
• Section 231 empowers the US President to impose at least five of 12 listed sanctions on persons engaged in a “significant transaction” with the Russian defence and intelligence sectors.
• The US State Department has notified 39 Russian entities, “significant transactions” with which could make third parties liable to sanctions.
• Almost all major Russian defence manufacturing and export companies/entities including Almaz-Antey Air and Space Defence Corporation JSC, the manufacturers of the S-400 system, are on the list.