Q. With reference to Countering America’s Adversaries Through Sanctions Act (CAATSA), consider the following statements:
1.The Act empower US President to impose sanctions on countries that engage in a significant transaction with only the Russian defence and intelligence sectors.
2.Once imposed, the US President could not waive off the sanctions.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Recently, the American Deputy Secretary of State described the S-400 missile deal between India and Russia as dangerous, expressed hope that the India and US could solve the issue amicably.

Statement 1 is correct: The CAATSA Act empowers the US President to impose sanctions against certain countries. The imposition of sanctions take place on countries that engage in a significant transaction with the Russian defence and intelligence sectors. The “ultimate goal” of CAATSA “is to prevent revenue to the Russian Government.

Statement 2 is incorrect: The US President could waive off the sanctions if:

  1. A Country is taking steps to reduce its dealings in terms of Russian weapons purchases or
  2. A Country has better cooperation with the US on other security matters that are critical to the US strategic interests or
  3. If the Russian weapons to the country do not significantly increase the risk to United States defence systems and operational capabilities.

Source: What is “CAATSA” or Countering America’s Adversaries Through Sanctions Act?