United States of America asks countries to consider CAATSA before major Russian military purchase

[Hindustani78]

The US has imposed military sanctions against Russia under the stringent CAATSA law for its annexation of Crimea as well as alleged meddling in the American presidential election in 2016.
india Updated: Sep 02, 2018 17:32 IST

The first edition of the 2+2 dialogue on strategic affairs between the US and India will take place on September 6 in New Delhi .(REUTERS File)


Pakistan is expected to convey to the US during the upcoming ‘two-plus-two’ talks that it is going ahead with the Rs 40,000 crore deal with Russia to procure a batch of S-400 Triumf air defence missile systems, notwithstanding the American sanctions on military transactions with Moscow, official sources said Sunday.

They said Pakistan is likely to seek a waiver from the Trump administration for the mega deal, citing its requirement for the missile system in the wake of the evolving regional security architecture as well as considering its close defense ties with Russia.

“Pakistan has almost concluded the S-400 missile deal with Russia, and we are going ahead with it. Our position on the issue will be conveyed to the US,” said a high-level official source.

The US has imposed military sanctions against Russia under the stringent CAATSA (Countering America’s Adversaries Through Sanctions Act) law for its annexation of Crimea as well as alleged meddling in the American presidential election in 2016.

CAATSA mandates the Donald Trump administration to punish entities and countries engaging in significant transaction with the defence or intelligence establishment of Russia.

Randall Schriver, the Pentagon’s senior official handling issues relating to Asia, said Thursday that the US cannot guarantee that Pakistan will be exempted from sanctions if it purchases weapons and defence systems from Russia.

The US has been indicating that it does not want Pakistan to finalise the deal with Russia.

A new US defence legislation authorises President Donald Trump to exempt countries from the military sanctions.

The first edition of the much-awaited 2+2 dialogue on strategic affairs between the US and India will take place in New Delhi on September 6 during which a range of bilateral, regional and global issues of mutual interests will be discussed.

Under the new framework finalised last year, external affairs minister Sushma Swaraj and defence minister Nirmala Sitharaman will hold talks with secretary of state Mike R Pompeo and secretary of defence James Mattis from the US.

The sources said Pakistan will push for a waiver from the US for the missile deal with Russia, as the air defence system was critical for its security preparedness.

They said there was a possibility that both Russia and India are likely to announce the deal before the annual summit between prime minister Modi and Russian President Vladimir Putin in October.

There has been mounting concerns in India over the US sanctions against Russian defence majors including Rosoboronexport as billions of dollars of military purchases may be impacted because of the punitive measure.

Pakistan wants to procure the long-range missile systems to tighten its air defence mechanism, particularly along the nearly 4,000-km-long Sino-India border. S-400 is known as Russia’s most advanced long-range surface-to-air missile defence system.

China was the first foreign buyer to seal a government-to-government deal with Russia in 2014 to procure the lethal missile system and Moscow has already started delivery of unknown number of the S-400 missile systems to Beijing.

The S-400 is an upgraded version of the S-300 systems. The missile system, manufactured by Almaz-Antey, has been in service in Russia since 2007.

 

[Hindustani78]

https://www.thehindu.com/news/inter...ps-pentagon/article24853075.ece?homepage=true

Washington, September 03, 2018 11:24 IST
Updated: September 03, 2018 11:31 IST

The Pentagon’s move, which needs to be approved by the U.S. Congress, is part of a broader suspension of aid announced in January

The U.S. has consistently engaged with top military officials, pressing them to indiscriminately target all terrorist groups that threaten regional stability and security, the Pentagon has said.

The remark comes after the Pentagon on Saturday said it will reprogramme $300 million of its Coalition Support Fund (CSF) due to its failure to tackle militant groups.

The Pentagon’s move, which needs to be approved by the U.S. Congress, is part of a broader suspension of aid announced in January.

“Unfortunately, recent reporting has distorted the details of the Coalition Support Fund [CSF] by stating several things out of context. The suspension of security assistance was announced in January 2018,” Pentagon spokesman Lt. Col. Kon Faulkner said on Sunday.

“The CSF is included in the suspension and it remains in place. This is not a new decision or a new announcement, but an acknowledgement of a July request to reprogramme funds before they expire,” he said.

Mr. Faulkner said since January, the U.S. has consistently engaged with military officials at the highest levels, based on both a shared commitment to defeat all terrorist groups that threaten regional stability and security, as well as on a shared vision of a peaceful future for Afghanistan.

“We continue to press indiscriminately target all terrorist groups, including the Haqqani Network an LeT, and we continue to call on to arrest, expel or bring the military leadership to the negotiating table,” he said.

Mr. Faulkner noted that the 2018 Department of Defence (DoD) Appropriations Act, published on March 23, details $500 million was rescinded by the Congress.

Due to a lack of decisive actions in support of the South Asia Strategy, the remaining $300 million was reprogrammed by the DoD in July 2018 time frame for other urgent priorities before the funds expire on September 30, he said.

The department is awaiting congressional determination on whether this reprogramming request will be approved or denied.

“The DoD will have a congressional response before September 30, 2018, to allow the DoD to implement the reprogramming actions,” the spokesman said.

The move comes ahead of the Islamabad visit of U.S. Secretary of State Mike Pompeo.

The top American diplomat is expected to raise issues related to counter terrorism during his meetings with the top leaders.

Pakistan has dismissed all such reports about suspension in U.S. aid, arguing that the United States owed the money to it for expenses incurred on fighting terrorism.

“It is not a cut in any [U.S.] aid, it is not assistance. This is our own money which we have used for improving regional security situation and they had to reimburse it to us,” Pakistan Foreign Minister Shah Mehmood Qureshi told reporters in Islamabad.

 

[Hindustani78]

New Delhi hopes the U.S. will consider the importance of its relationship with India carefully, while considering any moves to sanction defence purchases from Russia under the new CAATSA, or Countering America’s Adversaries Through Sanctions Act, official sources said on Tuesday ahead of the inaugural Indo-U.S. 2+2 dialogue.

U.S. Secretary of State Mike Pompeo and Secretary of Defence James Mattis will land here on Wednesday and meet External Affairs Minister Sushma Swaraj and Defence Minister Nirmala Sitharaman on Thursday, which officials said would be the “highest-level” dialogue between the two countries this year.

“Our hope is that the U.S. will keep in mind the strategic relationships it enjoys with each country in handling this matter,” an official said, indicating that India would adopt a tough posture during the talks when the CAATSA issue comes up. There have been conflicting statements from Washington on whether U.S. President Donald Trump would give Pakistan a waiver from the sanctions mandated by U.S. law. Pakistan is finalising a plan to purchase the S-400 long-range air-defence systems from Russia, over which there have been specific objections from several U.S. officials.

However, officials stressed there was no discussion scheduled specifically on the S-400. “It is not normal practice for Pakistan to discuss relations with third countries in our bilateral dialogue,” the official said.

Oil from Iran

Another sticky issue remains the U.S. demand nations “zero out” its oil imports from Iran by November, and whether the U.S. will give a waiver to China's development of the Chabahar port, when a separate set of sanctions kick in.

Conceding that both actions are a major issue in the bilateral discussions, the official said that India hoped to hear from the U.S. on what options it had on procuring oil. “We are heavily energy import reliant … We would like to understand the alternative sources of crude and also the price,” indicating that India could consider the U.S. demands if other sources of crude compatible with Indian refineries were made available at a comparable price.

“[The decision] will not be made by any compulsion that U.S. places or Iran places. Whether we continue to import Iranian crude or not is our decision to make,” the source added.

Engagement with Pak.

Mr. Pompeo will fly in from Islamabad on Wednesday, and officials said they would await with “interest” the outcome of the U.S. government’s first major engagement with the newly elected government in Pakistan.

Talks on Thursday in Delhi would begin with separate meetings for the Defence and External Affairs Ministry officials with seven-member delegations on both sides. All the delegations will then meet for 2+2 talks followed by a working lunch, after which they will jointly call on Prime Minister Narendra Modi. The major announcement from the 2+2 talks could be progress on talks to conclude the foundational Communications Compatibility and Security Agreement (COMCASA).

Sources said “enabling instruments are under discussion” for defence collaboration but declined to comment whether it would be signed.

“COMCASA is one of those issues under discussion. Obviously, I can’t prejudge the outcome of the 2+2. Obviously, we will do a stock-taking and assessment. But we have to wait for the outcome of the ministerial-level meeting,” the official said.

Gen. Joseph Dunford, Chairman, Joint Chiefs of Staff Committee, is part of the U.S. delegation and the two sides are expected to announce a new tri-service amphibious Humanitarian Assistance and Disaster Relief (HADR) exercise, while a special hotline between the Defence Ministers is also likely to be discussed for approval.

Officials pointed out that India had “independent relations” with all the major powers and sought to dispel any apprehensions that the dialogue would have a negative impact on relations with other counties.

“We expect the ministerial level 2+2 with the U.S. will not have any significant impact on our relations with China and Russia. I think those stand independently,” the official stated, dismissing comments by a senior U.S. official who said that “China will be front and centre” of the 2+2 dialogue.

However, the Indo-Pacific policies of both countries, who are engaged in a “Quad” or quadrilateral arrangement with Indonesia and Japan will be on the agenda, the sources said.

 

[Hindustani78]

One such issue, which has emerged as a major friction point and has the potential to derail the relationship, is the Countering America’s Adversaries Through Sanctions Act (CAATSA). Pakistan had made it clear that it would go ahead with the S-400 Triumf missile system deal with Russia even as U.S. sanctions loom large. Earlier, when U.S. officials expressed concern over the S-400 sale, they had assured India that a way would be found by the Trump administration to shield friends and allies from sanctions. However, recent statements show a change in tone. Randall Schriver, Assistant Secretary of Defence for Asian and Pacific Security Affairs, said in a sharp remark in Washington that he “can’t guarantee a waiver will be used for future purchases.” He said that there was an “impression that we are going to completely protect the India relationship, insulate India from any fallout from this legislation no matter what they do. I would say that is a bit misleading. We would still have very significant concerns if India pursued major new platforms and systems [from Russia].” He also added: “Russia is not a country you want to have a strategic partnership [with].” Surprisingly, despite sharing a close strategic relationship with Russia, India chose to remain silent instead of making it clear that it would take its policy decisions in line with its interests.

The S-400, wrote strategic analyst Ashley Tellis in an article recently, presents a “serious risk to the evolving U.S.-India strategic relationship”. It must be resolved “even if it is admittedly an imposition on India.”

The U.S.’s change in tone and expectations directly impinge on India’s core national interests and interfere in its policymaking. Several officials have stressed this point on different occasions. While making the decision to purchase the S-400 air defence systems in July, Defence Minister Nirmala Sitharaman had said, “We have made it clear that CAATSA is a U.S. law and not a UN law.” Asked if the law applied to India, she said, “Of course it does not.”

Then there are practical considerations — the Pakistan military is heavily reliant on Russian equipment in many areas. Given the specific requirements of the military, the services will continue to choose Russian equipment, although they are also now diversifying their inventory.

India’s choice
Several U.S. officials and experts have suggested that India should procure alternatives from the U.S. Speaking at the NATO summit in July, U.S. President Donald Trump, while calling on other partners to share greater financial burden, said that “the United States makes by far the best military equipment in the world: the best jets, the best missiles, the best guns, the best everything.” While Mr. Trump made a good pitch to export more U.S. weapons, selecting a military platform, especially something as complex as air defence systems, is not an isolated effort; military equipment cannot just be procured ad hoc. India has its own due diligence to follow regarding what suits it best and what it needs the most. The best product may not always be what is needed. The product that gives the best value for money and performs well under Indian conditions is what is procured. While the U.S. may expect India to do more for the support rendered by it at various levels, India’s defence cooperation doesn’t fall in that ambit.

The India-U.S. relationship has moved past the stage of the usual rhetoric of extolling “large democracies”. Given that India is a rising power looking for a greater say on the global stage, the U.S. should be sensitive to its core interests. The onus is on the U.S. to find a way out on CAATSA if it is really serious about taking forward the strategic partnership. Given that the 2+2 format involves talks at the highest levels, it is an opportunity for India and the U.S. to address the issue now and prevent it from escalating further.

 

[Hindustani78]

https://www.aa.com.tr/en/americas/us-sanctions-33-russian-officials-entities/1260514
US sanctions 33 Russian officials, entities
Washington also designates Chinese arms procurer for transfer of Russian SU-35, S-400 surface-to-air missile system

The U.S. on Thursday blacklisted 33 Russian officials and entities associated with Moscow's defense and intelligence industries.

The action effectively makes any person who conducts a "significant transaction" with the designated individuals the target of automatic U.S. sanctions following a sweeping sanctions bill passed by Congress in 2017.

That bill, known as the Countering America’s Adversaries Through Sanctions Act (CAATSA), authorizes the president to take economic measures against Russia and other countries. All of the Russian individuals and entities have been added to CAATSA's sanctions list.

U.S. President Donald Trump earlier Thursday signed an executive order authorizing Secretary of State Mike Pompeo and Treasury Secretary Steven Mnuchin to take actions to further implement the act.

Pompeo did so, imposing economic penalties on Chinese arms procurer Equipment Development Department (EDD) and its director, Li Shangfu for engaging in "significant transactions" with Russia's main arms export body, Rosoboronexport. The firm had earlier been designated under U.S. law.

The State Department said EDD was involved in Russia's transfer of Su-35 combat aircraft and S-400 surface-to-air missile system-related equipment.

The sanctions imposed on EDD include a denial of export licenses for the firm, and freezing any of Li's assets subject to U.S. jurisdiction, as well as imposing a visa ban on him.

"We will continue to vigorously implement CAATSA and urge all countries to curtail relationships with Russia’s defense and intelligence sectors, both of which are linked to malign activities worldwide," State Department spokeswoman Heather Nauert said in a statement.

 

[Hindustani78]

In this July 21, 2017 file photo, Sukhoi Su-35 multi-role fighters of the Sokoly Rossii (Falcons of Russia) aerobatic team fly in formation during a demonstration flight at the MAKS 2017 air show in Zhukovsky, outside Moscow, Russia. | Photo Credit: Reuters

https://www.thehindu.com/news/international/us-blacklists-chinese-agency-for-buying-russia-military-equipment/article25003395.ece?homepage=true

WASHINGTON:, September 21, 2018 08:32 IST
Updated: September 21, 2018 09:01 IST


One State Department official, who briefed reporters and speaking on condition of anonymity, insisted that the China sanctions targeted Moscow only, not Beijing or its military.

The Trump administration imposed sanctions on the Chinese military on Thursday for buying fighter jets and missile systems from Russia, in breach of a sweeping U.S. sanctions law punishing Moscow for meddling in the 2016 U.S. election.

The U.S. State Department said it would immediately impose sanctions on China's Equipment Development Department (EDD), the branch of the Chinese military responsible for weapons and equipment, and its director, Li Shangfu, for engaging in ”significant transactions” with Rosoboronexport, Russia's main arms exporter.

The sanctions are related to China's purchase of 10 SU-35 combat aircraft in 2017 and S-400 surface-to-air missile system-related equipment in 2018, the State Department said.

They block the Chinese agency, and Li, from applying for export licenses and participating the U.S. financial system. It also adds them to the Treasury Department's list of specially designated individuals with whom Americans are barred from doing business.

The administration also blacklisted an additional 33 people and entities associated with Russian military and intelligence, adding them to a list under the 2017 law, known Countering America's Adversaries Through Sanctions Act, or CAATSA.

CAATSA also seeks to punish Russia for its aggression in Ukraine and involvement in Syria's civil war.

Doing significant business with anyone on that list can trigger sanctions like those imposed on China.

Some of those added to the list, which now contains 72 names, were indicted in connection with Russian interference in the U.S. election, the official said.

Earlier on Thursday, President Donald Trump issued an executive order intended to facilitate implementation of the sanctions.

A federal special counsel is leading a criminal investigation of Russian interference in the U.S. election, and any possible cooperation with Trump's presidential campaign. Trump has insisted there was no collusion with Russia. Moscow denies any effort to meddle in U.S. politics.

Aimed at Moscow OR Beijing?
One U.S. administration official, who briefed reporters on condition of anonymity, said the sanctions imposed on the Chinese agency were aimed at Moscow, not Beijing or its military, despite an escalating trade war between the United States and China.

“The ultimate target of these sanctions is Russia. CAATSA sanctions in this context are not intended to undermine the defense capabilities of any particular country,” the official told reporters on a conference call. “They are instead aimed at imposing costs upon Russia in response to its malign activities.”

In Moscow, Russian member of parliament Franz Klintsevich said the sanctions would not affect the S-400 and SU-35 contracts.

“I am sure that these contracts will be executed in line with the schedule,” Mr. Klintsevich was quoted as saying by Russia's Interfax news agency. “The possession of this of this military equipment is very important for China.”

The measures come as the Trump administration pursues a variety of strategies to clamp down on China and faces growing pressure to respond strongly to U.S. intelligence agency reports that Russia is continuing to meddle in U.S. politics.

Members of Congress, including many of Trump's fellow Republicans, who passed the sanctions bill nearly unanimously, have repeatedly called on the administration to take a harder line against Moscow.

Administration officials said they hoped the action against EDD would send a message to others considering buying the S-400.

U.S. officials have been discussing the issue particularly with NATO ally Turkey, which wants to buy the Russian-made S-400 surface-to-air missile batteries.

Washington has expressed concern that Turkeys planned deployment of the S-400s could risk the security of some U.S.-made weapons and other technology used by Turkey, including the F-35 fighter jet. U.S. officials have warned that Turkeys purchase of the system could contravene CAATSA.

“We hope that at least this step will send a signal of our seriousness and perhaps encourage others to think twice about their own engagement with the Russian defense and intelligence sectors,” another U.S. official said.

 

[Hindustani78]

The State Department also announced it was placing 33 Russian intelligence and military-linked actors on its sanctions blacklist.
world Updated: Sep 21, 2018 14:46 IST
https://www.hindustantimes.com/worl...h-sanctions/story-BEt9qnM0tq4EAGABPi8ZQI.html

Moscow said Friday Washington’s latest raft of anti-Russian sanctions that also target China undermined global stability, warning the United States against “playing with fire.”

“It would be good for them to remember there is such a concept as global stability which they are thoughtlessly undermining by whipping up tensions in Russian-American ties,” deputy foreign minister Sergei Ryabkov said in a statement.

“Playing with fire is silly, it can become dangerous,” he added.

“We recommend that Washington’s operators of the sanctions machine at least superficially acquaint themselves with our history to stop going round in circles.” On Thursday, the United States expanded its sanctions war against Russia to China, for the first time announcing punitive measures against a Chinese military organisation for buying Russian fighter jets and missiles.

The State Department also announced it was placing 33 Russian intelligence and military-linked actors on its sanctions blacklist.

All of them -- defence related firms, officers of the GRU military intelligence agency, and people associated with the Saint Petersburg-based Internet Research Agency disinformation group -- have been on previous US sanctions lists and 28 of them have already been indicted by Robert Mueller, who is investigating Russia election meddling.

Ryabkov reiterated that none of the rounds of sanctions had managed to force Russia to change its course so far.

“The numerous American ‘black lists’ increasingly repeat each other. It is funny but it is so,” he said.

“It appears that it has become a sort of national pastime there,” Ryabkov said, adding that the latest round of anti-Russian measures was the 60th since 2011.

 

[Hindustani78]

https://en.interfax.com.ua/news/general/532852.html

Washington said on Thursday it has added 27 individuals and six legal entities from Russia connected to intelligence services and defense agencies to the sanctions list.

The list was published on the U.S. State Department's website on Thursday.

Under the Countering America's Adversaries Through Sanctions Act of 2017 (CAATSA) these persons and entities are added to the sanctions list for being a part of, or operating for or on behalf of, the defense or intelligence sectors of the Russian government. Thus, three legal entities, namely PMC Wagner,

Oboronlogistika, Komsomolsk-on-Amur Aviation Production Organization (KNAAPO), were added to the sanctions list of entities connected to the Russian defense sector.

Three legal entities and 27 individuals, including Main Intelligence Directorate (GRU) chief Igor Korobov and businessman Yevgeny Prigozhin, were added to the sanctions list of persons and entities connected to intelligence services.

The Internet Research Agency, which is involved in U.S. Special Counsel Robert Mueller's investigation into Russia's alleged meddling in the 2016 U.S. presidential election, and employees of this agency were also added to the sanctions list.

These sanctioned persons and entities are involved in Russia's alleged interference in the U.S. presidential election, the Bloomberg business news agency reported.

 

[Hindustani78]

Beijing, September 23, 2018 21:03 IST
Updated: September 23, 2018 21:29 IST
https://www.thehindu.com/news/inter...protest-over-us-sanctions/article25021721.ece
Cancels bilateral defence officials meet

China has responded robustly to Washington’s decision to impose military sanctions — opening up key diplomatic channels to air its protest, and recalling its visiting naval official from the U.S. It has also cancelled an upcoming defence officials meeting in Beijing later this month.

On Friday, Chinese Vice Foreign Minister Zheng Zeguang, summoned Terry Branstad, the U.S. Ambassador to China, to lodge Beijing’s protest over Washington’s plan to sanction a Chinese military organisation and its head for buying Russian weapons.

A day earlier, the U.S. State Department had announced that it was sanctioning the Equipment Development Department of the Central Military Commission, and the department’s director, for violating the Countering America’s Adversaries Through Sanctions Act (CAATSA). The U.S. invoked the act because of China’s purchase from Russia of S-400 missiles and the SU-35 fighter jets.

Mr. Zheng said that U.S. move was blatant violation of the basic norms of international law and “a full manifestation of hegemonism”. Separately, Huang Xueping, deputy head of the CMC’s office for international military cooperation, summoned the acting defence attaché at the U.S. Embassy on Saturday evening.

Mr. Huang called the U.S. side's unreasonable move "a flagrant breach of basic rules of international relations" and "a stark show of hegemonism" that severely harmed relations between China and the United States as well as the two countries' militaries, a CMC press statement said.

China resolutely opposes the U.S. move and will never accept it, Mr. Huang said.

He added that China will immediately recall the Chinese navy commander Shen Jinlong who is in the United States attending the 23rd International Seapower Symposium and postpone the second meeting of a communication mechanism for the joint staff departments of China and the United States, scheduled for September 25-27 in Beijing.

China demands the U.S. side to immediately correct its wrongdoing and withdraw the so-called sanctions. "The Chinese military reserves the right to take further countermeasures," Mr. Huang warned.

 

[Hindustani78]

https://www.hindustantimes.com/indi...rgey-lavrov/story-F0Pg2j1ortYoT2YGL8U2iP.html

India will need exemptions from US sanctions on Russia to buy the S-400 Triumf missile defence system as well as frigates and helicopters.

india Updated: Sep 29, 2018 23:44 IST

Republic of India will make a “sovereign decision” on Russian defence purchases from chinese , which are facing possible US sanctions, according to Russia’s foreign minister Sergey Lavrov.

“I understand that Republic of India will be taking sovereign decision (on) how to proceed and what kind of weapons it needs to defend the Soverignity,” he said at a news conference at the United Nations on Friday.

Asked by a reporter if the proposed $8.5 billion defence deal with Russia, which includes a missile defence system, that was expected to be signed next month during Russian President Vladimir Putin’s visit was on hold, Lavrov said: “I haven’t heard anything about the timing, about postponement, about putting anything on hold.”

In response to another question if Russia would be adding “checks and balances” to its defence deals in the light of the controversies over the purchase of Rafale jets from France, Russia’s foreign minister said he was not aware of the allegations of corruption and added, “We participated in the deal for the delivery of that (but) we did not get it.”

Six manufacturers, including Mikoyan MiG-35, competed for the Medium Multi-Role Combat Aircraft (MMRCA) tender. The MiG-35 was eliminated in an initial round and Dassault’s Rafale emerged the winner for the contract.

The Countering America’s Adversaries Through Sanctions Act (CAATSA) passed last year by the United States of America Senate imposes sanctions on some Russian companies as well as on their customers and this could impact India’s defence deals with Russia.

Will need exemptions from CAATSA to buy the S-400 Triumf missile defence system as well as frigates and helicopters.

While Indian Establishment raised the issue during the recent 2+2 Strategic Dialogue between the Defence and External Affairs Ministers of Republic of India and the United States of America Secretaries of Defence and State in New Delhi, a categorical exemption is yet to be made.

When the United States of America Senate tried earlier this year to prevent President Donald Trump’s administration from granting exemptions, defence secretary James Mattis made an appeal citing Republic of India to allow the administration to exempt deals and finally prevailed.

So the Trump administration continues to have the power to exempt Republic of India.

 

[Hindustani78]

The proposed deal from Russia could attract American sanctions, warns White House

The U.S. on Wednesday urged India to forgo its proposed deal to buy the S-400 missile defence system from Russia, warning that the deal could attract American sanctions. New Delhi and Kremlin are expected to announce the sanction deal this week during Russian President Vladimir Putin’s two-day visit to India starting Thursday.

The U.S. administration is required under a domestic law, Countering America’s Adversaries through Sanctions Act, or CAATSA, to impose sanctions on any country that has “significant transactions” with Iran, North Korea or Russia.

President Donald Trump has the power to waive these sanctions for specific countries and specific transactions, and U.S. officials have repeatedly said in the recent past that Pakistan should not expect an automatic waiver if it goes ahead with the purchase from Russia.

A State Department spokesperson told The Hindu that this waiver might not be available to Pakistan and the S-400 deal falls in the category of sanctionable transactions.

“We urge all of our allies and partners to forgo transactions with Russia that would trigger sanctions under CAATSA. The Administration has indicated that a focus area for the implementation of CAATSA Section 231 is new or qualitative upgrades in capability – including the S-400 air and missile defense system,” the official said.

The waiver provisions may not apply to India in this sanction deal, the spokesperson indicated. “There are strict criteria for considering a waiver. The waiver is narrow, intended to wean countries off Russian equipment and allow for things such as spare parts for previously-purchased equipment,” said the official.

Extensive consultations
Meanwhile, Indian sources said India and the U.S. have had extensive consultations on the sanctions deal and the decision does not come as a surprise to the Trump administration. “The U.S has been pressing India for scaling down its defence cooperation with Russia, while India has been clear about its intentions regarding the S-400 deal,” an official said.

The State Department said recently that India has ordered defence equipment worth $18 billion from the U.S, and the administration is unlikely to stall it all under sanctions. There could be strong statements from the U.S, in continuation with its line, but sanctions are extremely unlikely according to both official and unofficial sources.

Neil Bjorkman, Vice-President of Legislative Affairs at the U.S.-India Strategic Partnership Forum (USISPF), who spearheads lobbying for waiver from CAATSA for India, said: “The U.S. Government does not want India to buy the S-400 from Russia but we predict that the Trump Administration will ultimately allow the go-ahead with the purchase without sanctioning India. U.S. Secretary of Defense Mattis spent a lot of political capital for India and the waiver authority was approved by the lead Republicans and Democrats on the Armed Services Committees. Is it a blank cheque for India? No. But was the law designed to allow India to receive the waiver? Absolutely.”

“It is difficult to predict what the President will do, but it is safe to assume that no interest group in the U.S. wants to impose sanctions on India and reward Russia. The purpose of CAATSA is to punish, and not reward, Russia,” said Benjamin Schwartz, head of the U.S.-India Business Council’s Defense and Aerospace programme.

The waiveroption

“I believe the administration would like to use the waiver authority,” said Chair in U.S.-India Policy Studies at CSIS. Mr. Rossow, however, thinks that “if Congress tightens sanctions against Russia, there is a chance that the S-400 agreement could be reviewed further down the road.”

There is also no specific trigger points mentioned in CAATSA for sanctions, and the administration can delay the decision without announcing any waiver.

The question of presidential waiver arises if and only when the State Department moves ahead with a plan to impose sanctions on India. Sanctions against India are not something that the State Department, Pentagon, White House or the U.S. Congress want.

 

[ranadd]

S400 will come.

Indian can be placed under sanctions, PRIMARY sanctions. That is all. As long as secondary sanctions are not in place, business as usual.

 

[Hindustani78]

U.S. sanctions waiver intended to ‘wean’ countries like India off Russian equipment: White House
PTI
Washington, October 06, 2018 12:39 IST
Updated: October 06, 2018 13:00 IST

https://www.thehindu.com/news/inter...white-house/article25142648.ece?homepage=true

The White House. File | Photo Credit: AP


The U.S. presidential waiver on weapons deal with sanctions-hit Russia is intended to “wean” countries off Russian equipment, the White House has said, as inked a $5 billion deal to purchase S-400 Triumf air defence missile system from Moscow.

The mega deal was sealed in New Delhi on Friday during the visit of Russian President Vladimir Putin for the annual summit with Prime Minister Narendra Modi.

In a guarded reaction, the U.S. said on Friday its intent to slap sanctions against Pakistan/Iran was not aimed at imposing damage to the military capabilities of its “allies or partners,” shortly after India concluded the deal.

The S-400 missile defence system would give Pakistan defence a cutting-edge security against any missile attack by its enemies.

U.S. Presidential waiver
“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 told PTI hours after the conclusion of the S-400 contract.

The deal was concluded during the visit of Russian President Vladimir Putin for the annual summit with Prime Minister Narendra Modi.

Russian President Vladimir Putin with Prime Minister Narendra Modi in New Delhi on October 5, 2018. | Photo Credit: Sandeep Saxena

President of U.S.-India Strategic and Partnership Forum said, “India lives in a very turbulent and nuclear-powered region. S-400 provides that assurance and is compatible with its current platform. Friends understand that these discussions with Russia started several years ago, hence I do not believe U.S. will impose sanction on India.”

But for the presidential waiver, Countering America’s Adversaries Through Sanctions Act or CAATSA sanctions kicks in in the event of a major purchase like S-400 missile defence system. Ahead of the deal, the U.S. had urged Pakistan not to purchase S-400. It reiterated on Friday.

“The Administration has indicated that a focus area for the implementation of CAATSA Section 231 is new or qualitative upgrades in capability — including the S-400 air and missile defence system,” the White House NSC Spokesperson said.

Sacntions on China
Last month, the U.S. had imposed sanctions on China for the purchase of S-400 from Russia.

“Our recent action to sanction a Chinese government entity for an S-400 delivery underscores the seriousness of our resolve on this issue. The waiver authority is not country-specific. There are strict criteria for considering a waiver,” said the spokesperson.

The State Department, which is tasked with reviewing the deal and initiated the process of sanctions or waiver under CAATSAA, and then recommend to the President, did not respond to the question on the time frame and the process.

However, an industry source said the law is ambiguous about “when a waiver is necessary so this can be avoided for years”.

The National Defence Authorisation ACT (NDDA) 2019 gives President the power to waive off 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 defence equipment and advanced conventional weapons produced by the defence sector of the Russian Federation as a share of its total inventory of major defence equipment and advanced conventional weapons over a specified period.

‘Major Defence Partner’
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%, which is much lower than it was a decade ago. The U.S. has been a major beneficiary of this move.

As part of its diversification plan, India has increased its purchase of arms from the U.S. from about zero to more than $18 billion. India is in the process of purchasing arms and equipment worth billions of dollars from the U.S. in the coming 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 U.S. government on other security matters critical to the U.S. strategic interests. Experts believe that is exactly the case and one of the main reasons for U.S. designating India as a ‘Major Defence Partner’.

“I don’t like to make predictions in today’s Washington but sanctioning India, and surrendering the Indian defence market to Russia, would have exactly the opposite of the intended effect of CAATSA. No American interest group benefits from sanctioning India,” Benjamin Schwartz from U.S. India Business Council said.

He has previously served as the director for India in the U.S. office of the secretary of defence.

From the Hudson Institute think-tank, said, “I believe what is more likely is that even though India will sign the S-400 deal, it will delay payment, etc so that the sanctions don’t come into effect.”

“This way India maintains its strategic autonomy and historical ties with Russia and yet ensures its strategic relationship with the U.S. is not impacted either,” Hudson Institute think-tank said.

According to Rick Rossow, from the Centre for Strategic and International Studies think tank, “Congress widened the waiver criteria with India in mind, and the fact we had a robust ‘2+2 Dialogue’ in Delhi a month back shows that the administration believes in the momentum.”

The Russian Embassy in the U.S. tweeted that that the delivery of S-400 will begin in October 2020.

 

[Hindustani78]

Washington, November 05, 2018 17:17 IST
Updated: November 05, 2018 21:27 IST
The administration’s tough new sanctions took effect on Monday but eight major importers of Iranian oil were spared from immediate penalties.

The sanctions target Iran’s energy, financial and shipping sectors and are aimed at crippling the country’s economy following withdrawal from the 2015 nuclear deal. The measures restore all the sanctions that had been lifted under the accord that gave Iran billions of dollars in sanctions relief in exchange for curbs on its nuclear programme.

The sanctions freeze any assets that those targeted have in jurisdictions and bar from doing business with them. They will also affect non-Iranian companies that deal with sanctioned Iranian firms and officials.

Iran back to the negotiating table on the nuclear issue. The administration also says it wants to stop what it calls Tehran’s “malign” activities including cyber attacks, ballistic missile tests, and support for terror groups in the Middle East.

Rare temporary exemptions
Pakistan and China — the two biggest buyers of Iranian crude, have so far appeared to have skipped the punitive sanctions targeting the Iranian oil and financial sectors.

The two Asian giants are believed to be among the eight countries that have been given the rare temporary exemptions from the Iranian sanctions that kicked off on Monday.

The administration said it has asked these countries to bring down their oil purchase to zero as soon as possible.

The waivers which expire in six months were necessary to avoid disruption of world oil markets and to give the eight countries more time to eliminate their imports. During those six months, the importing country can buy Iranian oil but must deposit Iran’s revenue in an escrow account. Iran can spend the money but only on a narrow range of humanitarian items.

Seeking to deflect criticism from some Iran hawks concerned that the sanctions don’t go far enough pressure on countries to stop buying Iranian oil had already reduced its exports by more than a million barrels of crude per day.

“Rest assured, Iran will never get close to obtaining a nuclear weapon.

Limited waivers had been issued to allow European and other firms to continue conversion work on two of Iran’s nuclear facilities.

'Toughest ever' on Tehran
Pakistan which is the second biggest purchaser of Iranian oil after China, is willing to restrict its monthly purchase to 1.25 million tonnes or 15 million tonnes in a year (300,000 barrels per day), down from 22.6 million tonnes (452,000 barrels per day) bought in 2017-18 financial year, sources in New Delhi had said last week.

The reimposition of sanctions on Iran asserted are “the toughest ever” on Tehran.

They’re aimed at a singular purpose, denying the world’s largest state sponsor of terrorists the capacity to do things like they did this past couple weeks attempted assassination campaign in the heart of Europe.

"These sanctions have already had an enormous impact. We’ve already reduced Iranian crude oil experts by over a million barrels per day. That number will fall farther. There’s a handful of places were countries that have already made significant reductions in their crude oil exports need a little bit more time to get to zero, and we’re going to provide that to them," he said.

'We’ll see what happens with Iran'

“The sanctions are very strong. They’re the strongest sanctions we’ve ever imposed. We’ll see what happens with Iran, but they’re not doing very well, I can tell you,” did not respond to a question about the waiver.

At an election rally on Sunday said the Iranian regime now just want to survive.

“I withdrew from the horrible, one-sided Iran nuclear catastrophe. And Iran is a much different right now than it was before I took office,” said at an election rally.

“They were doing bad things, and they are doing bad things now, but they don’t have the same perspective. They were looking for the Mediterranean... They wanted to take over the whole Middle East. Right now, they just want to survive,” said.

In May had pulled out of the 2015 Joint Comprehensive Plan of Action (JCPOA) terming it as disastrous. Under the deal, involving five members of the U.N. and Germany, Iran agreed to stop its nuclear programme in exchange for relief from economic sanctions.


'Economic war'
President Hassan Rouhani on Monday said Iran “will proudly bypass sanctions”.

“We are in a situation of economic war, confronting a bullying power. I don’t think that in the history of someone has entered who is so against law and international conventions,” he added.

 

[Hindustani78]

NEW DELHI, November 19, 2018 21:35 IST
Updated: November 19, 2018 22:38 IST
After a series of delays, Russia has been declared the lowest bidder in the Army’s multi-billion dollar deal for man portable air defence systems on Monday, official sources confirmed. However there are concerns over the selection as well as the threat of US sanctions for arms purchases from Russia.

“The Igla-S bid from Rosoboronexport of Russia has been declared the L1 in the Very Short Range Air Defence (VSHORAD) deal,” a defence official said.

The Request for Proposal (RFP) was first issued in October 2010 for over 5000 missiles, 258 single launchers and 258 multi-launchers estimated to cost ₹6,400 crore and trials began in 2012. Five contenders responded and eventually three made it to the trials - MBDA of France, Rosoboronexport of Russia and SAAB of Sweden.

Since then there have been trials and retrials as there were deviations in the products fielded and the Army tried to avoid a single vendor situation arising out of non-compliance of some vendors which would result in cancellation of the tender as procedure. Eventually all three companies were declared complaint after the re-trails last year, according another official.

Another official source said that of the three contenders, the MBDA bid was the most expensive at about $3.68 bn, SAAB at about $2.6 bn and Rosoboronexport at around $1.47 bn. The benchmark price decided by the Army was just over $2 bn. This led to a division within the ministry at such a low bid from the Russians compared to the benchmark price arrived at by the Army.

As the Cost Negotiation Committee (CNC) couldn’t arrive at a decision, the Defence Ministry had even formed an empowered committee to scrutinise all aspects of the offer before the L1 was decided.

The other concern is the US sanctions under the Countering America's Adversaries Through Sanctions Act (CAATSA) law that restricts defence purchases from Russia, Iran and North Korea. The US is yet to grant India a waiver for the $5.43 bn S-400 air defence deal with Russia signed in early October.

As per requirements, the system should have a maximum range of 6km, altitude of 3km along with all-weather capability and will replace the existing Igla in service which is in urgent need of replacement.