• The United States imposed sanctions on Turkey over Ankara’s acquisition of Russian S-400 air defence systems, further complicating already strained ties between the two NATO allies.

• The move comes at a delicate time in relations between Washington and Ankara, along with Turkish actions in Syria, the conflict between Armenia and Azerbaijan and in the eastern Mediterranean.

• The sanctions, near the end of Trump’s presidency, are likely to weigh on Ankara’s ties with Democrat Joe Biden’s administration when he takes over as president next month.

What is the reason for the move by the US?

• Turkey acquired the Russian S-400 ground-to-air defences in mid-2019 and says they pose no threat to NATO allies. But Washington has long threatened sanctions and last year removed Turkey from an F-35 jet programme.

• Turkey reportedly tested the missile defense system in October for the first time, drawing a condemnation from the Pentagon. Ankara says it was forced to buy the Russian system because the US refused to sell it American-made Patriot missiles. The Turkish government has also pointed to what it considers a double standard, as NATO member Greece uses Russian-made missiles.

Sanctions under the CAATSA

• The sanctions target Turkey’s top defence procurement and development body Presidency of Defence Industries (SSB), its chairman Ismail Demir and three other employees. The measures, which received a bipartisan welcome from the US Congress, were announced under the Countering America’s Adversaries Through Sanctions Act (CAATSA) — the first time the Act has been used against a fellow member of the NATO alliance.

• The penalties block any assets the four officials may have in US jurisdictions and bar their entry into the US. 

• The sanctions will block joint projects or technology transfers between US companies and Turkish firms linked to SSB. They also impose restrictions on loans and credits by US financial institutions to SSB totalling more than $10 million, while imposing asset freezes and visa restrictions on the SSB president and three other employees.

• It is not immediately clear what impact the sanctions will have on third countries such as European states that supply arms or defence components and work with Turkish defence firms.

What is the CAATSA?

• On August 2, 2017, US President Trump signed into law the “Countering America’s Adversaries Through Sanctions Act” (CAATSA), which among other things, imposes sanctions on Iran, Russia and North Korea.  

• Under the CAATSA, the Trump administration can impose sanctions on any country carrying out significant defence and energy trade with sanctioned entities in Russia, Iran and North Korea.

• The CAATSA requires the US president to select at least five of 12 possible sanctions on countries in violation. The 12 options range from mild to harsh and can target people or entities:

1) Sanction US Export-Import Bank credit or assistance.

2) Sanction US exports of goods and services.

3) Sanction large loans from US financial institutions.

4) Seek to block loans from international financial institutions including the World Bank and International Monetary Fund.

5) Sanctions on financial institutions holding US government funds or serving as US primary dealer.

6) Sanction US procurement of goods or services.

7) Sanction any foreign-exchange transactions under US jurisdiction.

8) Sanction any bank payments or transfers subject to US jurisdiction.

9) Sanction any transactions related to property.

10) Sanction any investment in US debt or equity.

11) Deny visas to corporate officers related to sanctioned entity or person.

12) Sanctions on principal executive officers of targeted entity or person.

Why does India keep a constant watch on CAATSA developments?

• In October 2018, India and Russia formally inked the $5.2 billion deal for the S-400 missile system. The air defence system is expected to be delivered by next year.

• The S-400 Triumf is an advanced surface-to-air missile system, developed by Russia’s state-owned company Almaz-Antey, and can shoot down hostile aircraft and ballistic missiles. It has an estimated range of 250 km and a possible upgrade is speculated to extend it to 400 km. 

• China was the first foreign buyer to seal a government-to-government deal with Russia in 2014 to procure the lethal missile system. 

• The Russian deal became a bone of contention between India and the US. It can trigger the US sanctions under the CAATSA, prohibiting any engagement with Russia’s defence sector.

• There is a provision for presidential waiver for the CAATSA sanctions subject to reporting and certification requirements by the administration. The Indian government keeps a constant watch on all developments having a bearing on India’s security and takes all necessary measures to safeguard it. 

• Trump administration officials have warned that India should not assume it will get a waiver from US sanctions if it goes ahead with its purchase of the S-400 missile shield.

What is NATO?

• North Atlantic Treaty Organisation (NATO) was formed in 1949 with the signing of the Washington Treaty. NATO is a security alliance of 30 countries from North America and Europe. 

• In 1949, there were 12 founding members of the alliance: Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom and the United States. 

• The other member countries are: Greece and Turkey (1952), Germany (1955), Spain (1982), the Czech Republic, Hungary and Poland (1999), Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia (2004), Albania and Croatia (2009), Montenegro (2017) and North Macedonia (2020).

• NATO’s fundamental goal is to safeguard the Allies’ freedom and security by political and military means.

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