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India Likely to Get a Waiver From Sanctions Under CAATSA

CAATSA Waiver

CAATSA Waiver

India is likely to receive the delivery of the S-400 defence system in November. As a result, several lawmakers in the United States have asked for exemptions for India from sanctions being imposed under CAATSA Countering America’s Adversaries Through Sanctions Act. It is a US federal law which imposed sanctions on Russia, Iran, and North Korea and was enacted in 2017.

It also has the provision of sanctions against those countries which engage in significant transactions with Russia’s defence and intelligence sectors.

Under the Act, the US President can impose at least five of the 12 listed sanctions on persons engaged in a “significant transaction” with Russian defence and intelligence sectors.

What sanctions will be imposed?

  1. prohibition on loans to the sanctioned person.
  2. prohibition of Export-Import bank assistance for exports to sanctioned persons.
  3. prohibition on procurement by United States Government to procure goods or services from the sanctioned person.
  4. denial of visas to persons closely associated with the sanctioned person.

Implications on India

Though the sanctions are not directly imposed on India, it affects India nonetheless. The prime reason for this is the nature of the relationship that India has with Russia and Iran. India has strong trade ties with Russia traditionally to fulfill its military requirements, while Iran has been crucial to cater for the needs of crude oil demand in India with both these nation-states.

So, in case India does not remove ties with Iran and Russia, the US can invoke sanctions against India. India can neither afford to lose the growing diplomatic relations with the US nor it can afford to forego supplies of oil and defence from Iran and Russia.

What are the reasons behind this exemption?

What is India’s S-400 deal with Russia?

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