The Countering America’s Adversaries Through Sanctions Act (CAATSA) is a United States federal law, or Act, that imposes sanctions on Iran, North Korea, and Russia. The Act was signed into law by President Donald Trump on August 2, 2017, after passing Congress with veto-proof majorities. CAATSA was created to counter perceived aggression from these three nations, including Russia's interference in the 2016 U.S. election, Iran's ballistic missile program, and North Korea's nuclear program. The law's primary mechanism is the imposition of secondary sanctions, which target non-U.S. persons or entities for engaging in "significant transactions" with the defense or intelligence sectors of Russia, Iran, or North Korea.
A key provision is Section 231 of the Act, which authorizes the President to impose sanctions on any person who knowingly engages in a "significant transaction" with a person that is part of, or operates for or on behalf of, the defense or intelligence sectors of the Government of the Russian Federation. The sanctions can include denial of bank financing, prohibition of foreign exchange transactions, and procurement sanctions prohibiting contracts with the U.S. government. CAATSA is connected to and builds upon prior executive orders, particularly those related to Russia, by codifying them into statute, which limits the President's ability to unilaterally lift the sanctions without Congressional review.
A significant recent development affecting India occurred on July 14, 2022, when the U.S. House of Representatives approved a legislative amendment to the National Defense Authorization Act (NDAA). This amendment grants the U.S. President the authority to provide a waiver to India from CAATSA sanctions for its acquisition of the Russian S-400 missile defense system. This move was intended to help deter aggressors like China and contrasts with the U.S. imposition of sanctions on Turkey in December 2020 under Section 231 for its S-400 acquisition. The core structure of CAATSA, which targets the three countries through separate titles—Title I (Iran), Title II (Russia), and Title III (North Korea)—remains the same.