US Congress okays waiver for sanctions that could hit India

WASHINGTON: The US Senate has passed a defence spending bill which seeks to amend another law that threatens secondary sanctions against countries conducting “significant” business with Russia, such as India if it goes ahead with plans to buy a Russian air defence system.

The bill, called the National Defense Authorization Act (NDAA) 2019, has already passed the House of Representatives and is now headed for President Donald Trump for his signature, which he is not expected to withhold given the support the White House has already extended to the bill.

“I am grateful for the strong commitment of members on both sides of the aisle to pass this year’s NDAA in record time. Together, they have demonstrated the deep and abiding bipartisan support our military enjoys,” defence secretary James Mattis said in a statement after the Senate passed the bill on Wednesday.

“It is now our duty to implement these policies responsibly and ensure a culture of performance and accountability.”

The White House has not commented as yet on the Senate action but it had said on passage by the House, “By supporting key components of the Administration’s National Security Strategy and National Defense Strategy, both of which focus on a return to principled realism in an era of great power competition, the FY 2019 NDAA enhances the President’s ability to defend the nation.

“It also supports key components of the Administration’s Nuclear Posture Review, South Asia Strategy, vision of a free and open Indo-pacific region.”

When enacted, NDAA 2019 will amend CAATSA, allowing countries such as India to continue to buy from Russia provided they fulfil certain conditions, which New Delhi does, most American and Indian officials aver. This includes measures such as reducing orders placed with Russia and stepping up calls to the US.

Mattis had emerged as the most ardent advocate of these waivers, with the backing of secretary of sate Mike Pompeo, and had lobbied lawmakers while arguing that sanctioning these countries to punish Russia would drive them even closer to Moscow.

CAATSA FORBIDS THIRDPARTY COUNTRIES FROM DOING “SIGNIFICANT TRANSACTIONS” WITH RUSSIA IN THE MILITARY AND INTELLIGENCE SECTORS. INDIA WAS DIRECTLY IN THE LINE OF FIRE UNDER THIS LAW.