Post missile deal with Russia, India awaits US decision on waiver from sanctions

Unfazed by the US government’s unhappiness with India for signing the multi-billion S-400 missile pact with Russia, Indian officials say that the deal was in national security interest and it was up to Washington to decide if it qualifies for a waiver.

“It was difficult for India to get a prior waiver on sanctions as the US government decides on it after examining the deal that has been struck. India has inked the S-400 deal with Russia as the missiles were much needed to ramp up its security. Now that the deal is struck, the US will examine it and come to a decision on the waiver,” an official told BusinessLine.

New Delhi, will, however, continue to negotiate with Washington for a waiver. “We understand that the sanctions are not to be imposed till payments take place. This will take some time. Through our diplomatic channels we will continue to try and convince Washington to give India the Presidential waiver against sanctions as the motive behind the deal was not to strengthen Russia but to meet its own security interests,” the official added.

Clinching the deal for S-400, one of the world’s most advanced long-range missile systems capable of destroying cruise, ballistic missiles, valued at over $5 billion, was a significant outcome of Russian President Vladimir Putin’s visit to India last week.

It led to an immediate reaction from the US Embassy in India which came out with a statement implying that it will not guarantee a waiver to India from sanctions. “The waiver authority is not for a blanket waiver….There are strict criteria for considering a waiver. Waivers of CAATSA section 231 will be considered on a transaction-by-transaction basis,” the spokesperson from the US Embassy said.

US officials had earlier warned that the deal could qualify for sanctions under the Countering America's Adversaries through Sanctions Act or CAATSA legislation, which deals primarily with countries having “significant transactions” with Russia, North Korea or Iran.

The following day, the US State Department came up with a stronger statement pointing out that its recent action to sanction a Chinese government entity for an S-400 delivery underscored the seriousness of its resolve on the issue.

“We refer you to the Indian government on the status of its acquisition of the S-400 air and missile defence system from Russia. The waiver authority is not country-specific. There are strict criteria for considering a waiver. The waiver is narrow, intended to wean countries off of Russian equipment and allow for things such as spare parts for previously purchased equipment,” the statement said.