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Countering America’s Adversaries Through Sanctions Act (CAATSA)

Recently, the U.S.A threatened India to impose sanctions under the Countering America’s Adversaries Through Sanctions Act (CAATSA) law, if India goes ahead with the decision to purchase S-400 missile defense system from Russia. Consider the following statements about the CAATSA law:

  1. Enacted in 2016, it is a US federal law that imposed sanctions on Iran, North Korea and Russia.
  2. The Act empowers the US President to impose at least five of the 12 listed sanctions on persons engaged in a “significant transaction” with Russian defence and intelligence sectors.

Which of the statements given above is/are correct?

A
Only 1
B
Only 2
C
Both 1 and 2
D
Neither 1 nor 2