Countering America's Adversaries Through Sanctions Act


The Countering America's Adversaries Through Sanctions Act is a United States federal law that imposed sanctions on Iran, North Korea, and Russia. It accomplishes this goal by preventing U.S. companies from doing business with sanctioned entities. The bill was passed by the Senate on July 27, 2017, 98–2, after it passed the House 419–3. It was signed into law on August 2, 2017, by President Donald Trump, who nevertheless believed that the legislation was "seriously flawed".

Legislative history

On 15 June 2017, the United States Senate voted 98 to 2 for the bill, which was rooted in a bill introduced in January that year by a bipartisan group of senators over Russia's continued involvement in the wars in Ukraine and Syria and its interference in the 2016 U.S. presidential election; with regard to Russia, the bill was designed to expand the punitive measures previously imposed by executive orders and convert them into law. The bill in the Senate incorporated the provisions of the Countering Russian Influence in Europe and Eurasia Act that was introduced in May 2017 by Senator Ben Cardin.
An identical bill was introduced by Democrats in the House of Representatives on 12 July 2017. While the bill's text was unchanged from what had passed the Senate on 15 June, it was titled as House legislation to avoid procedural hurdles. The bill, after being revised to address some of the Trump administration's concerns, passed in the House 419 to 3 on 25 July. On 27 July, the bill was passed overwhelmingly by the Senate, 98 to 2. Support in both chambers was high enough to override a potential presidential veto. On August 2, 2017, President Donald Trump signed the bill into law.

Provisions

Countering Iran's Destabilizing Activities Act of 2017
  • CAATSA requires the President to impose sanctions against: Iran's ballistic missile or weapons of mass destruction programs, the sale or transfer to Iran of military equipment or the provision of related technical or financial assistance, and Iran's Islamic Revolutionary Guard Corps and affiliated foreign persons.
  • The President may impose sanctions against persons responsible for violations of internationally recognized human rights committed against individuals in Iran.
  • The President may temporarily waive the imposition or continuation of sanctions under specified circumstances.
Countering Russian Influence in Europe and Eurasia Act of 2017
  • The President must submit for congressional review certain proposed actions to terminate or waive sanctions with respect to the Russian Federation.
  • Specified executive order sanctions against Russia shall remain in effect.
  • The President may waive specified cyber- and Ukraine-related sanctions.
  • The bill provides sanctions for activities concerning: cyber security, crude oil projects, financial institutions, corruption, human rights abuses, evasion of sanctions, transactions with Russian defense or intelligence sectors, export pipelines, privatization of state-owned assets by government officials, and arms transfers to Syria.
  • The Department of State shall work with the government of Ukraine to increase Ukraine's energy security.
  • The bill: directs the Department of the Treasury to develop a national strategy for combating the financing of terrorism, and includes the Secretary of the Treasury on the National Security Council.
The Act imposed new sanctions on Russia for interference in the 2016 U.S. elections and its involvement in Ukraine and Syria. The Act converted the punitive measures previously imposed by Executive Orders into law to prevent the President from easing, suspending or ending the sanctions without the approval of Congress.
Section 241 of the Act required that "not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury, in consultation with the Director of National Intelligence and the Secretary of State" submit to Congress a detailed report — with the option of containing a classified annex — that would include "identification of the most significant senior foreign political figures and oligarchs in the Russian Federation, as determined by their closeness to the Russian regime and their net worth" as well as an assessment of the relationship between such individuals and "President Vladimir Putin or other members of the Russian ruling elite". The section also called for an assessment of the "leadership structures and beneficial ownership" of Russian parastatal entities.
Korean Interdiction and Modernization of Sanctions Act
  • The bill modifies and increases the President's authority to impose sanctions on persons in violation of certain United Nations Security Council resolutions regarding North Korea.
  • U.S. financial institutions shall not establish or maintain correspondent accounts used by foreign financial institutions to provide indirect financial services to North Korea.
  • A foreign government that provides to or receives from North Korea a defense article or service is prohibited from receiving certain types of U.S. foreign assistance.
  • The bill provides sanctions against: North Korean cargo and shipping, goods produced in whole or part by North Korean convict or forced labor, and foreign persons that employ North Korean forced laborers.
  • The State Department shall submit a determination regarding whether North Korea meets the criteria for designation as a state sponsor of terrorism.

    Domestic reactions

President Trump

On the day President Trump signed the bill into law, he issued two separate, simultaneous signing statements. In the statement meant for Congress he said: "While I favor tough measures to punish and deter aggressive and destabilizing behavior by Iran, North Korea, and Russia, this legislation is significantly flawed. In its haste to pass this legislation, the Congress included a number of clearly unconstitutional provisions" — such as restrictions on executive branch′s authority that limited its flexibility in foreign policy. Among other things, the statement noted that the legislation ran afoul of the Zivotofsky v. Kerry ruling of the Supreme Court. The president appeared to indicate that he might choose not to enforce certain provisions of the legislation: "My Administration will give careful and respectful consideration to the preferences expressed by the Congress in these various provisions and will implement them in a manner consistent with the President's constitutional authority to conduct foreign relations." It also said: "Finally, my Administration particularly expects the Congress to refrain from using this flawed bill to hinder our important work with European allies to resolve the conflict in Ukraine, and from using it to hinder our efforts to address any unintended consequences it may have for American businesses, our friends, or our allies."
The other statement by Trump noted: "he bill remains seriously flawed – particularly because it encroaches on the executive branch's authority to negotiate. Congress could not even negotiate a healthcare bill after seven years of talking. By limiting the Executive's flexibility, this bill makes it harder for the United States to strike good deals for the American people, and will drive China, Russia, and North Korea much closer together".

State Department

State Department spokeswoman Heather Nauert stated: "Since the enactment of the CAATSA legislation, we estimate that foreign governments have abandoned planned or announced purchases of several billion dollars in Russian defense acquisitions. Given the long timeframes generally associated with major defense deals, the results of this effort are only beginning to become apparent."
Secretary of State Mike Pompeo warned Egypt against purchasing Russian Sukhoi Su-35, saying "We've made clear that if those systems were to be purchased, the CAATSA statute would require sanctions on the regime."

Defense Department

Assistant Secretary of Defense Randall Schriver stated: "We understand historical India-Russia relationship.... On CAATSA, Mattis did plea for an exception for India, but I can't guarantee a waiver will be used for future purchases."

International reactions

European Union

In mid-June 2017, Germany and Austria issued a joint statement that said the proposed bill heralded a "new and very negative quality in European-American relations" and that certain provisions affecting gas pipeline projects with Russia were an illegal threat to EU energy security.
On July 26, 2017, France's foreign ministry described the new U.S. sanctions as illegal under international law due to their extraterritorial reach.
At the end of July 2017, the proposed law's Russia sanctions caused harsh criticism and threats of retaliatory measures on the part of the European Commission President Jean-Claude Juncker. Germany's Minister for Economics and Energy Brigitte Zypries described the sanctions as illegal under international law and urged the EU to take appropriate counter-measures.

India

In October 2018, India signed a US$5.43 billion deal with Russia to procure four S-400 Triumf surface-to-air missile defense systems, while ignoring the CAATSA. The U.S. threatened India with sanctions over India's decision to buy the S-400 missile defense systems from Russia.
According to the President of the U.S.-India Strategic Partnership Forum, Mukesh Aghi:
Two oil companies ordered crude oil from Iran for November ignoring CAATSA. The United States threatened India with sanctions over India's decision to buy oil from Iran.
On 15 July 2022, the United States House of Representatives passed a legislative amendment that granted India a waiver from CAATSA-related sanctions connected to the purchase of the S-400; however the amendment is yet to be passed by the United States Senate.