The United States House of Representatives recently approved an amendment to the National Defence Authorization Act (NDAA), suggesting a Countering America’s Adversaries Through Sanctions Act (CAATSA) waiver that is specific to India. The proposed adjustment will enable India to acquire Russia’s S-400 missile system without fear of American sanctions. The NDAA is annual legislation typically used for alterations to the policies and organisation of US defence agencies and provides direction on how military funding can be used.
The Proposed Amendment
The suggested change encourages the US administration to use its authority to grant India a CAATSA waiver, with the aim of deterring aggressors such as China. The amendment supports the United States-India Initiative on Critical and Emerging Technologies (ICET), highlighting its importance in fostering close connections between the governments, academia, and industries of both nations. The ICET focusses on the development of breakthroughs in areas such as artificial intelligence, quantum computing, biotechnology, aerospace, and semiconductor manufacturing.
An Overview of CAATSA
Established in 2017, CAATSA is a US law designed to impose economic sanctions on countries with extensive dealings with Russia, North Korea, and Iran. Title II of this Act primarily concerns sanctions on Russian interests, including its oil and gas industry, defence and security sector, and financial institutions. These sanctions were conceived in response to Russia’s military intervention in Ukraine and alleged interference in the 2016 US Presidential elections.
How CAATSA Sanctions Could Impact India
Only two sanctions under CAATSA may potentially affect India-Russia and India-US relations. The first, “Prohibition of Banking transactions”, may cause difficulties for India in making US Dollar payments to Russia for the S-400 systems and other resources. Another sanction, the “export sanction”, could severely disrupt the India-US Strategic and Defence partnership, as it denies the license for export of any items controlled by the US. As of 2018, the US President has the authority to waive CAATSA sanctions on a case-by-case basis.
Understanding Russia’s S-400 Missile System
The S-400 is a mobile, Surface-to-Air Missile system (SAM) designed by Russia. It’s reputed to be the most formidable operationally deployed Modern Long-Range SAM (MLR SAM) in the world, surpassing even the US-developed THAAD system. The S-400 is able to fire three kinds of missiles to establish a layered defence, and can engage all types of aerial targets within a range of 400km. It is considered significant for India as it could help counter attacks in a potential two-front war, including threats from high-end US fighter aircraft like the F-35.
Implications of the CAATSA Waiver on India-US Relations
The proposed amendment implores the US to assist India in reducing its reliance on Russian arms. This aligns with the progressive strategic bilateral relations between the two countries over recent years, which have seen US defence contracts with India rise to at least USD 20 billion since 2008. In addition, the US recognized India as a major defence partner in 2016, further strengthening strategic ties through groupings such as Quad and I2U2. For India, moving away from Russian platforms enhances its strategic interests, particularly considering Russia’s increased dependence on China following Ukraine’s invasion, and China being the second largest recipient of Russia’s arms exports after India.