NEW DELHI: As India and USA make preparations for a ‘2+2’ dialogue in early July between the foreign and defense ministers, US’ linkage of sanctions of Russia with India might bring the 2 countries to an awfully uncomfortable place, creating the first high-level interaction probably tough. Sushma Swaraj and Nirmala Sitharaman are expected to visit Washington for the first such dialogue, that has been deferred a couple of times.
While India will hope to barter a carve-out for Chahbahar port in forthcoming Iran sanctions, exploitation the precedent of the previous sanctions regime, the extreme nature of the CAATSA sanctions regime would build it not possible for India to follow. Recent reports aforementioned India and Russia had completed price negotiations for the Rs 40,000 crore S-400 Triumf anti-missile defense system, and were probably to announce it before the official summit in October.
US’ linkage of sanctions on Russia with India may bring the two countries to a very uncomfortable place
But for the deal to travel through might need to find the simplest way around CAATSA (Countering America’s Adversaries Through Sanctions Act) that mandates the Trump administration to penalize entities participating during a vital transaction with the defense or intelligence sectors of Russia. As per the Indian officials, the sanctions regime may kick in on any defense buys on top of $15 million, that is absolutely chickenfeed in defense transactions.
Indian officials conjointly aforementioned they were talking to Russia to explore ways in which around the USA sanctions and this was one amongst the points of dialogue throughout the recent informal summit in Sochi.
Indian officials also said they were talking to Russia to explore ways around the US sanctions
In the early days when the nuclear tests of 1998, once a series of sanctions were slapped on India, the first conversations between USA and Indian officials entailed creating exceptions for India, particularly within the space of technology exports. thus among the ideas doing the rounds is to get an exception for S-400. officials purpose to the actual fact that USA allies like Saudi Arabia and Turkey are each on the point of signing deals for S-400, and any sanctions planned for India would apply to those countries, drawing comfort from the actual fact that India isn’t alone.
Sushma Swaraj and Nirmala Sitharaman are expected to travel to Washington for dialogue
Although the economy czars of both countries don’t seem to be getting to be in the dialogue, India and USA are getting ready for a few friction on that front, with the USA threatening to get rid of discriminatory trade privileges for India.