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S-400 deal: USA's CAATSA sanctions will not pressurise its defence agreement with India, says Russia

India had last week inked a USD 5 billion deal to purchase S-400 Triumf air defence system from Moscow.

Edited by: India TV News Desk, Moscow [ Updated: October 11, 2018 14:35 IST ]
India had last week inked a USD 5 billion deal to purchase

India had last week inked a USD 5 billion deal to purchase S-400 Triumf air defence system from Moscow. 

Amid looming concerns over the US sanctions on the purchase of S-400 surface-to-air missiles from Russia, Russian Ambassador to India Nikolay Kudashev has clarified that the sanctions will not be a pressure between India-Russia defence deals.

"USA's CAATSA sanctions will not be a pressure between India-Russia defence deals. In 2-3 months you will see deals on frigates and Kalashnikovs", he said.

He added that during Russian President Putin's visit to India, the two sides discussed strategy to identify common priority areas and how to protect our 

trade relationship from unpredictable factors like CAATSA.

The Russian ambassador's remarks come amidst US' threat over imposing punitive CAATSA sanctions after India signed a USD 5 billion deal to purchase the much-vaunted S-400 air defence system from Russia.

Under the Countering America's Adversaries Through Sanctions Act or CAATSA sanctions, which was amended early this year, only Trump has the authority for the presidential waiver to India on weapons deal with sanctions-hit Russia.

India had last week inked a USD 5 billion deal to purchase S-400 Triumf air defence system from Moscow. The mega deal was sealed in New Delhi during the visit of Russian President Vladimir Putin for the annual summit with Prime Minister Narendra Modi.

Earlier in the day, US President Donald Trump said that India will 'soon find out' about his decision on the sanctions.

Last week, the White House had said that the US presidential waiver on weapons deal with sanctions-hit Russia is intended to "wean" countries like 

India off the Russian equipment.

"The (CAATSA presidential) waiver is narrow, intended to wean countries off Russian equipment and allow for things such as spare parts for previously-purchased equipment," a White House National Security Council Spokesperson had said after the conclusion of the S-400 contract.

The US embassy spokesperson in New Delhi had said that the CAATSA was aimed at Moscow and not intended to damage the military capabilities of its "allies and partners."

Under the CAATSA which was signed into law last year, India is subject to sanctions now that it has entered into an agreement with Russia to purchase S-400 Triumf missile defense system in USD 5.4 billion, which is considered by the US as a significant purchase.

CAATSA gives the Trump administration more ways to target Russia, Iran and North Korea with economic and political sanctions.

Earlier last month, the US had used CAATSA to impose sanctions on Chinese entities for purchase of S-400. Friends of India in the US hope that New Delhi will receive a presidential waiver, given that Trump Administration has recognised India as a major defense partner and is in advance stage of selling billions of dollars’ worth of equipment to India in the next few years.

The S-400 missile defense system is intended to give India's defence sector a cutting-edge security against any missile attack by its enemies.

The National Defense Authorization ACT (NDDA) 2019 gives president the power to waive of the CAATSA sanctions if it is national security interest.

It also lists out several other options for presidential waiver, prominent among which is the purchase country – India in this case –is taking or will take steps to reduce its inventory of major defense equipment and advanced conventional weapons produced by the defense sector of the Russian Federation as a share of its total inventory of major defense equipment and advanced conventional weapons over a specified period. 

In fact, over the last more than a decade, India the top arms purchaser of the world, has gradually reduced its dependence on Russian arms. It now stands at about 60 percent, which is much lower than it was a decade ago. United States has been a major beneficiary of this. 

As part of its diversification plan, India has increased its purchase of arms from the US from about zero to more than USD 18 billion. India is in the 

process of purchasing arms and equipment worth billions of dollars from the United States in the coming months and years including armed and unarmed drones and fighter jets.

A presidential waiver can also be given if a country like India in this case is cooperating with the United States government on other security matters 

that are critical to United States strategic interests. 

The Russian Embassy in US tweeted that that the delivery of S-400 will begin in October.

 

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