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Question-2. Discuss important features and importance of CAATSA. Also explain how it is impacting India.


Answer: The Countering America’s Adversaries Through Sanctions Act (CAATSA) is a US federal law, enacted in 2017 and came into effect from January 2018, that imposed sanctions on Iran, North Korea and Russia.

It includes sanctions against countries that engage in significant transactions with Russia’s defence and intelligence sectors.

Features of CAATSA

  • The Countering America’s Adversaries through Sanctions Act (CAATSA), aims at taking punitive measures against Russia, Iran, and North Korea.
  • 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.
  • The USA President was given the authority in 2018 to waive CAATSA sanctions on a case-by-case basis.

Impact on India

  • Seventy per cent of Indian military hardware is Russian in origin. India still relies heavily on Russian equipment, such as submarines and missiles that the US has been unwilling to provide.
  • India could also face USA sanctions for purchasing the S-400 Triumf missile defense system from Russia under the CAATSA.
  • If implemented stringently, CAATSA would impact Indian defence procurement from Russia.
  • India stopped importing oil from Iran in mid-2019 following sanctions on the Persian Gulf nation by the Trump administration. India’s relations with Iran was seriously impacted.

Thus, India needs to balance its relation with both Russia and USA, so that its national interest is not compromised. India must leverage this position to help in building a peaceful world order.

Tags: GS 2 ( International relations)
By – Prashant Tiwari

Updated on 17 Jun 2022 |   Added on .14 Jun 2022  |  by admin