What Is CAATSA And Its Implications On India?

Editorials News | Jan-07-2022

What Is CAATSA And Its Implications On India?

Since 1999, Two of the World's most powerful countries that are The United States of America (USA) and Russia or The Soviet Union  have had critical relations with each other. Both maintain strategic foreign relations in the world but after the  NATO Bombing of Yugoslavia" the relations are becoming worse between these two nations. A few years ago, in 2014, the relation significantly deteriorated due to Russian Military Intervention in Ukraine. This intervention triggered the American government and as retaliation, the government imposed a law against Russia which was named- Countering America's Adversaries Through Sanctions Act (CAATSA).

The CAATSA law is a federal law enforced by the USA in 2017 and empowered the American President to impose at least five of the 12 sanctions on the law-breaking country with the main objective to prevent the flow of revenue to the  Russian government. According to this act, if any nation was involved in significant transactions with the Russian Defence and Intelligence Sector, sanctions will be imposed on the nation. This threaten to impose sanctions on countries and asked all its allies and partners, including India, to stop all transactions with Russia and also Iran and North Korea.

This CAATSA Law had a lot of implications on India and influence its relationship with Russia and America. India had recently planned a deal with Russia of the S-400 Triumf Missile" to help India against deadly clashes with China on LAC. However, this deal between India and Russia, estimated to be around 18,148 Crore Rupees, was a violation of CAATSA, and India is at risk of sanctions by the American Government and India would not be allowed to buy more advanced and sensitive technologies from America at value with that of America's closest allies. The USA had repeatedly warned India that it would not give any waiver on the sanctions. But despite objections from the US, India is likely to begin the receiving process of the Missile system. The decision of India would impact India-US relations and would mean difficulties for India in making payments in US Dollar.

But besides all, India needs to develop a close Alliance with balance with both US and Russia so that it would not hinder the National Interest and Economy of the nation. Hence, India must adopt strategic partnerships and maintain a balanced relationship with both superpowers.