U.S. announced that If Turkey purchases the S-400 systems they will apply Countering America’s Adversaries Through Sanctions Act known as CAATSA.
Turkey’s decision to ignore U.S. warnings and take delivery of a Russian-made air defense missile system could signal a permanent rupture in its alliance with Washington and will test President Donald Trump’s willingness to punish Ankara with sanctions, former officials and experts said.
On the other side, “Turkey made the best decision and political strategy. The S-400 anti-aircraft missile system is the newest air defense system and is designed to defeat a wide range of modern and prospective air attack weapons,” the Russian defense ministry said.
President Tayyip Erdoğan said on Monday that the Russian S-400 missile defense system, parts of which have been delivered to Turkey over the past four days, would be fully deployed in April 2020.
Cargo planes carrying parts for the sophisticated S-400 system began arriving on Friday, Turkey announced, even though U.S. officials had told the government if it went ahead it could lose access to America’s F-35 stealth fighter jet, which Ankara has ordered, and face potentially harsh economic sanctions.
The CAATSA law authorizes the US president to apply at least 5 articles or more of the 12 sanctions specified in the CAATSA to persons or institutions that have contacts with the intelligence and defense institutions of the Russian Federation government. CAATSA sanctions include:
(1) EXPORT-IMPORT BANK ASSISTANCE FOR EXPORTS TO SANCTIONED PERSONS.—The President may direct the Export-Import Bank of the United States not to give approval to the issuance of any guarantee, insurance, extension of credit, or participation in the extension of credit in connection with the export of any goods or services to the sanctioned person.
(2) EXPORT SANCTION.—The President may order the United States Government not to issue any specific license and not to grant any other specific permission or authority to export any goods or technology to the sanctioned person under—
(A) the Export Administration Act of 1979 (50 U.S.C. 4601 et seq.) (as continued in effect pursuant to the International Emergency Economic Powers Act
(B) the Arms Export Control Act (22 U.S.C. 2751 et seq.);
(C) the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.); or
(D) any other statute that requires the prior review and approval of the United States Government as a condition for the export or reexport of goods or services.
(3) LOANS FROM UNITED STATES FINANCIAL INSTITUTIONS.—The President may prohibit any United States financial institution from making loans or providing credits to the sanctioned person totaling more than $10,000,000 in any 12-month period unless the person is engaged in activities to relieve human suffering and the loans or credits are provided for such activities.
(4) LOANS FROM INTERNATIONAL FINANCIAL INSTITUTIONS.—The President may direct the United States executive director to each international financial institution to use the voice and vote of the United States to oppose any loan from the international financial institution that would benefit the sanctioned person.
(5) PROHIBITIONS ON FINANCIAL INSTITUTIONS.—The following prohibitions may be imposed against the sanctioned person if that person is a financial institution:
(A) PROHIBITION ON DESIGNATION AS PRIMARY DEALER.—Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, the financial institution as a primary dealer in United States Government debt instruments.
(B) PROHIBITION ON SERVICE AS A REPOSITORY OF GOVERNMENT FUNDS.—The financial institution may not serve as agent of the United States Government or serve as repository for United States Government funds. The imposition of either sanction under subparagraph (A) or (B) shall be treated as 1 sanction for purposes of subsection (b), and the imposition of both such sanctions shall be treated as 2 sanctions for purposes of subsection (b).
(6) PROCUREMENT SANCTION.—The United States Government may not procure, or enter into any contract for the procurement of, any goods or services from the sanctioned person.
(7) FOREIGN EXCHANGE.—The President may, pursuant to such regulations as the President may prescribe, prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the sanctioned person has any interest.
(8) BANKING TRANSACTIONS.—The President may, pursuant to such regulations as the President may prescribe, prohibit any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the sanctioned person.
(9) PROPERTY TRANSACTIONS.—The President may, pursuant to such regulations as the President may prescribe, prohibit any person from—
(A) acquiring, holding, withholding, using, transferring, withdrawing, transporting, importing, or exporting any property that is subject to the jurisdiction of the United States and with respect to which the sanctioned person has any interest;
(B) dealing in or exercising any right, power, or privilege with respect to such property; or
(C) conducting any transaction involving such property.
(10) BAN ON INVESTMENT IN EQUITY OR DEBT OF SANCTIONED PERSON.—The President may, pursuant to such regulations or guidelines as the President may prescribe, prohibit any United States per son from investing in or purchasing significant amounts of equity or debt instruments of the sanctioned person.
(11) EXCLUSION OF CORPORATE OFFICERS.— The President may direct the Secretary of State to deny a visa to, and the Secretary of Homeland Security to exclude from the United States, any alien that the President determines is a corporate officer or principal of, or a shareholder with a controlling interest in, the sanctioned person.
(12) SANCTIONS ON PRINCIPAL EXECUTIVE OFFICERS.—The President may impose on the principal executive officer or officers of the sanctioned person, or on persons performing similar functions and with similar authorities as such officer or officers, any of the sanctions under this subsection.
(b) SANCTIONED PERSON DEFINED.—In this section, the term ‘‘sanctioned person’’ means a person subject to sanctions under section 224(a)(2), 231(b), 232(a), or 233(a).