India may face US sanctions following its multi-billion dollar deal to purchase the Russian-made S-400 air defence system, a US Congressional report has warned.
The Congressional Research Service (CRS) in its latest report to Congress, said India is “eager for more technology-sharing and co-production initiatives, while the United States urges more reforms in India’s defence offsets policy and higher Foreign Direct Investment caps in its defence sector.”
The report warned that “India’s multi-billion dollar deal to purchase the Russian-made S-400 air defence system may trigger US sanctions on India under the Countering America’s Adversaries Through Sanctions Act.”
It should be noted that the CRS’ reports are made by independent experts and cannot be considered as an official report of the US Congress or a reflection of the view of Congressmen.
What is the Russian deal that can trigger sanctions
In October 2018, India signed a $5 billion deal with Russia to buy five units of the S-400 air defence missile systems. The Trump administration had warned that the deal may invite US sanctions.
In 2019, India made the first tranche of payment of around $800 million to Russia for the missile systems. The S-400 is Russia’s most advanced long-range surface-to-air missile defence system.
At a press conference in New Delhi last month, the Russian ambassador to India Nikolay Kudashev criticized the US sanctions on Turkey for procuring the S-400 missile systems under a $2.5 billion deal.
“As far as India is concerned, we share the same platform. India’s position is also crystal clear. No sanctions are acknowledged other than those imposed by the UN Security Council. Whatever the future is, we believe that our ties could withstand the coming challenges,” he said.
The US imposes sanctions on countries it thinks have violated the provisions of the Countering America’s Adversaries Through Sanctions Act (CAATSA).
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