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Economy

India's S-400 deal and the CAATSA question

Summary

A look back at the Russian air-defence purchase that put India in the path of possible U.S. sanctions, as reported in the days before 11 October 2018.

What did India's purchase of Russian missiles mean for its relations with Washington as of 11 October 2018? Days earlier, on 5 October 2018, it was reported that India was buying the S-400 missile system, a Russian defence-industry product, and could face U.S. sanctions under CAATSA as a result.

CAATSA, the Countering America's Adversaries Through Sanctions Act, is a U.S. federal law that imposed sanctions on Iran, North Korea and Russia. It works by preventing U.S. companies from doing business with sanctioned entities. The Senate passed it on 27 July 2017 by 98 votes to 2, after the House approved it 419–3. President Donald Trump signed it into law on 2 August 2017, though he believed the legislation was "seriously flawed".

The link between the two stories was the exposure the S-400 deal created. A major buyer of Russian weaponry was reported to be moving ahead with a purchase that could bring it within reach of a law aimed at Russia.

For readers following Ukraine and its neighbours, the episode showed how Russia's defence exports sat within the wider framework of U.S. sanctions on Moscow. The reports of 5 October 2018 set out the possibility of sanctions on India, not a decision.

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