WASHINGTON (Reuters) - The Trump administration imposed sanctions on the Chinese military on Thursday for buying fighter jets and missile systems from Russia, in breach of a sweeping U.S. sanctions law punishing Moscow for meddling in the 2016 U.S. election.

In Beijing, the Chinese government expressed anger and demanded the sanctions be withdrawn.

The U.S. State Department said it would immediately impose sanctions on China’s Equipment Development Department (EDD), the military branch responsible for weapons and equipment, and its director, Li Shangfu, for engaging in “significant transactions” with Rosoboronexport, Russia’s main arms exporter.

The sanctions are related to China’s purchase of 10 SU-35 combat aircraft in 2017 and S-400 surface-to-air missile system-related equipment in 2018, the State Department said.

They block the Chinese agency, and Li, from applying for export licenses and participating in the U.S. financial system.

It also adds them to the Treasury Department’s list of specially designated individuals with whom Americans are barred from doing business.

The U.S. also blacklisted another 33 people and entities associated with the Russian military and intelligence, adding them to a list under the 2017 law, known as the Countering America’s Adversaries Through Sanctions Act, or CAATSA.

CAATSA also seeks to punish Russia for its aggression in Ukraine and involvement in Syria’s civil war.

“China expresses strong indignation at these unreasonable actions by the U.S. side and has already lodged stern representations,” Chinese Foreign Ministry spokesman Geng Shuang told reporters in Beijing, adding the moved seriously harmed bilateral relations and military ties.

“We strongly urge the U.S. side to immediately correct the mistake and rescind the so-called sanctions, otherwise the U.S. side will necessarily bear responsibility for the consequences,” he said, without giving details.

China has “normal” military exchanges and cooperation with Russia, aimed at protecting regional peace and stability, which is not against international law or aimed at any third party, Geng added.

China will continue to work with Russia to promote strategic cooperation at an even higher level, he said.

Doing significant business with anyone on the U.S. blacklist can trigger sanctions like those imposed on China.

Some of those added to the list, which now contains 72 names, were indicted in connection with Russian interference in the 2016 U.S. election, a U.S. official said.

President Donald Trump on Thursday issued an executive order intended to facilitate implementation of the sanctions.

A federal special counsel is leading a criminal investigation of Russian interference in the U.S. election, and any possible cooperation with Trump’s presidential campaign.

Trump has insisted there was no collusion with Russia. Moscow denies any effort to meddle in U.S. politics.

AIMED AT MOSCOW - OR BEIJING?

One U.S. administration official, who briefed reporters on condition of anonymity, said the sanctions imposed on the Chinese agency were aimed at Moscow, not Beijing or its military, despite an escalating trade war between the United States and China.

“The ultimate target of these sanctions is Russia. CAATSA sanctions in this context are not intended to undermine the defense capabilities of any particular country,” the official told reporters on a conference call.

FILE PHOTO: Sukhoi Su-35 multi-role fighters of the Sokoly Rossii (Falcons of Russia) aerobatic team fly in formation during a demonstration flight at the MAKS 2017 air show in Zhukovsky, outside Moscow, Russia, July 21, 2017. REUTERS/Sergei Karpukhin/File Photo

“They are instead aimed at imposing costs upon Russia in response to its malign activities,” the official said.

In Moscow, Russian member of parliament Franz Klintsevich said the sanctions would not affect the S-400 and SU-35 deals.

“I am sure that these contracts will be executed in line with the schedule,” Klintsevich was quoted as saying by Russia’s Interfax news agency. “The possession of this military equipment is very important for China.”

Security analysts in Asia said the move was largely symbolic and would only push Moscow and Beijing closer together.

“The imposition of U.S. sanctions will have zero impact on Russian arms sales to China,” said Ian Storey, of Singapore’s ISEAS Yusof Ishak Institute.

“Both countries are opposed to what they see as U.S. bullying and these kind of actions will just push Beijing and Moscow even closer together,” he said, adding that Moscow needed Chinese money and Beijing wanted advanced military technology.

Collin Koh, a security analyst at Singapore’s S Rajaratnam School of International Studies, said the sanctions would do little to counter the evolving research and development relationship between China and Russia.

China relies less on large big-ticket purchases from Russia, but Chinese defense industries are seeking expertise from Russia and former-Soviet states to plug knowledge gaps, he said.

The Trump administration is pursuing strategies to clamp down on China and faces growing pressure to respond strongly to U.S. intelligence agency reports that Russia is continuing to meddle in U.S. politics.

Members of Congress, including many of Trump’s fellow Republicans, who passed the sanctions bill nearly unanimously, have repeatedly called on the administration to take a harder line against Moscow.

Administration officials said they hoped the action against EDD would send a message to others considering buying the S-400.

FILE PHOTO: Russian servicemen drive S-400 missile air defence systems during the Victory Day parade, marking the 73rd anniversary of the victory over Nazi Germany in World War Two, at Red Square in Moscow, Russia May 9, 2018. REUTERS/Sergei Karpukhin/File Photo

U.S. officials have been discussing the issue particularly with NATO ally Turkey, which wants to buy the Russian-made S-400 surface-to-air missile batteries.

Washington has expressed concern that Turkey’s planned deployment of the S-400s could pose a risk to the security of some U.S.-made weapons and other technology used by Turkey, including the F-35 fighter jet.

U.S. officials have warned that Turkey’s purchase of the system could contravene CAATSA.

“We hope that at least this step will send a signal of our seriousness and perhaps encourage others to think twice about their own engagement with the Russian defense and intelligence sectors,” another U.S. official said.</s>WASHINGTON: The United States on Thursday imposed sanctions against a Chinese military agency and its director for buying defense equipment from Russia, in contravention of a sweeping US sanctions bill signed in 2017.

US State Department officials said it would immediately impose sanctions against China's Equipment Development Department, which oversees defense technology, for engaging in "significant transactions" with Rosoboronexport, Russia's main arms exporter.</s>WASHINGTON (Reuters) - The United States on Thursday imposed sanctions on a Chinese military agency and its director for buying defense equipment from Russia in breach of a sweeping U.S. sanctions bill enacted in 2017.

The U.S. State Department said it would immediately impose sanctions on China’s Equipment Development Department, which oversees defense technology, and its director, Li Shangfu, for engaging in “significant transactions” with Rosoboronexport, Russia’s main arms exporter.

The Trump administration also blacklisted a further 33 people and entities associated with Russian military and intelligence, adding them to a sanctions list under the 2017 law, Countering America’s Adversaries Through Sanctions Act, or CAATSA.

One State Department official, who briefed reporters and speaking on condition of anonymity, insisted that the China sanctions targeted Moscow only, not Beijing or its military.

“The ultimate target of these sanctions is Russia. CAATSA sanctions in this context are not intended to undermine the defense capabilities of any particular country,” the official told reporters on a conference call. “They are instead aimed at imposing costs upon Russia in response to its malign activities.”

The measures come as President Donald Trump’s administration pursues a variety of strategies to clamp down on China and faces growing pressure to respond strongly to U.S. intelligence agency reports that Russia is continuing to meddle in U.S. politics.

Members of Congress, including many of Trump’s fellow Republicans, who passed the sanctions bill nearly unanimously, have repeatedly called on the administration to take a harder line against Moscow.

The State Department official said the sanctions were related to China’s purchase of 10 SU-35 combat aircraft in 2017 and S-400 surface-to-air missile system-related equipment in 2018.

The sanctions block the Chinese agency from applying for export licenses and from participating in foreign exchange transactions under U.S. jurisdictions.</s>Moscow and Beijing lashed out Friday at Washington's new anti-Russian sanctions that also target China for the first time, warning the United States could face consequences.

The United States is "playing with fire", Russia's deputy foreign minister Sergei Ryabkov said, while Beijing voiced "strong indignation" over the move.

United in their resentment of America's global influence, China and Russia have sought in recent years to tighten up their ties and this month conducted week-long joint military drills, Moscow's largest ever war games.

On Thursday, China -- which is also locked in a trade war with Washington -- got caught up in the sanctions war against Russia as the United States announced a new raft of measures that would punish third countries for dealing with Moscow.

Stepping up pressure on Moscow over its "malign activities," the US State Department said it was placing financial sanctions on the Equipment Development Department of the Chinese Ministry of Defence, and its top administrator, for its recent purchase of Russian Sukhoi Su-35 fighter jets and S-400 surface-to-air missile systems.

Beijing on Friday urged the United States to withdraw sanctions or "bear the consequences".

"The US actions have seriously violated the basic principles of international relations and seriously damaged the relations between the two countries and the two militaries," said foreign ministry spokesman Geng Shuang, adding Beijing had lodged an official protest with the United States.

"We strongly urge the US to immediately correct their mistake and withdraw their so-called sanctions, otherwise the US will have to bear the consequences."

US officials said it was the first time a third country has been punished under the CAATSA sanctions legislation for dealing with Russia, signalling Donald Trump's administration will risk relations with other countries in its campaign against Moscow.

Moscow said Washington was rocking global stability and said sarcastically that placing sanctions on Russia has become Washington's favourite "pastime."

"It would be good for them to remember there is such a concept as global stability which they are thoughtlessly undermining by whipping up tensions in Russian-American ties," said Ryabkov.

"Playing with fire is silly, it can become dangerous," he said in a statement.

The State Department also announced it was placing 33 Russian intelligence and military-linked actors on its sanctions blacklist.

All of them -- defence related firms, officers of the GRU military intelligence agency, and people associated with the Saint Petersburg-based Internet Research Agency disinformation group -- have been on previous US sanctions lists.

Twenty eight of them have already been indicted by Robert Mueller, who is investigating election meddling by Russia.

US officials said that the US could consider similar action against other countries taking delivery of Russian fighter jets and missiles.

Turkey is in talks to buy S-400 missile systems from Russia.

Ryabkov reiterated that none of the rounds of sanctions had managed to force Russia to change its course so far.

"It appears that it has become a sort of national pastime there," he added, noting the latest round of anti-Russian measures was the 60th since 2011.

For all of Russia's seemingly upbeat rhetoric the new measures can hurt the country's struggling economy.

Arms exports are an important source of revenue for the country and last year Russia sold more than $14 billion worth of arms overseas.

A senior US administration official, speaking on condition of anonymity, insisted the ultimate target was Russia.

"CAATSA sanctions in this context are not intended to undermine the defence capabilities of any particular country," the official said.

CAATSA, or the Countering America's Adversaries Through Sanctions Act, was passed in 2017 as a tool that gives Washington more ways to target Russia, Iran and North Korea with economic and political sanctions.

China's EDD and its director Li Shangfu became targets after taking delivery over the past year of the jets and missiles from Rosoboronexport, Russia's main arms exporter already on the US blacklist for its support of Bashar al-Assad's regime in Syria.

The US official said Washington had spent "an enormous amount of time" seeking to discourage prospective buyers of Russian arms.

The new sanctions came as the United States and China are in the heat of a trade war.

The two countries will launch new tariffs on Monday, with Washington targeting $200 billion in Chinese exports and Beijing hitting $60 billion worth of American products.</s>BEIJING -- China said Friday it was "outraged" over U.S. economic sanctions against a Chinese military agency and its director over the purchase of Russian fighter jets and surface-to-air missile equipment. China's foreign ministry demanded the U.S. cancel the measure, as Moscow also lambasted the sanctions and warned that the Trump administration was "playing with fire."

Foreign Ministry spokesman Geng Shuang said Beijing had lodged stern complaints with Washington over the action, which triggers a ban on entering the U.S., forbids conducting transactions with the U.S. financial system and forces the blocking of all property and interests in property within U.S. jurisdiction.

"China is strongly outraged by this unreasonable action by the U.S.," Geng told reporters at a daily news briefing. "We strongly urge the U.S. to immediately correct its mistakes and revoke the so-called sanctions. Otherwise, it must take all the consequences," Geng said, without giving details.
• None U.S. calls out China, Russia for skirting North Korea sanctions 



China's purchase of the weapons from Rosoboronexport, Russia's main arms exporter, violated a 2017 law, the Countering America's Adversaries Through Sanctions Act (CAATSA), intended to punish the government of President Vladimir Putin for interfering in U.S. elections and other activities.

U.S. State Department spokeswoman Heather Nauert said in a statement that China's Equipment Development Department and director Li Shangfu made a "significant transaction" involving the purchase of Su-35 combat aircraft in 2017 and S-400 surface-to-air missile system-related equipment in 2018.

The sanctions were enacted "to further impose costs on the Russian government in response to its malign activities," Nauert said in the statement. The U.S. will continue to "urge all countries to curtail relationships with Russia's defense and intelligence sectors, both of which are linked to malign activities worldwide," she added.

A State Department official told CBS News' Kylie Atwood on Thursday that the "ultimate target" of the new sanctions is Russia, not China. They did not say whether NATO, which is also expected to purchase S-400 missile systems from Russia -- would also face sanctions. State Department officials have credited CAATSA with deterring transactions of Russian arms for many months.

Earlier on Friday, Russia also lashed out over the new sanctions, warning the U.S. was "playing with fire."

Russian Deputy Foreign Minister Sergei Ryabkov issued a statement saying the U.S. appeared to consider slapping sanctions on Russia a new national pastime, and dismissing their efficacy.

"Each new round of sanctions proves our foe's complete lack of success in pressuring Russia with previous such attempts," Ryabkov said according to the Reuters news agency. "It would be not bad if they remembered about the concept of global stability which they are unthinkingly undermining by whipping up tensions in Russia-U.S. relations. Playing with fire is stupid and can become dangerous."</s>The United States hit a Chinese military organisation with punishing for buying Russian fighter jets and missiles as it stepped up pressure on Moscow over its "malign activities".

It was the first time the Trump administration targeted a third country with its sanctions, designed to punish Russia for its seizure of and other activities.

The State Department said it was applying the 2017 legislation against the Equipment Development Department of the Chinese for its purchase of Russian Su-35 fighter jets and S-400 surface-to-air missiles.

At the same time, the State Department also announced it was placing 33 Russian intelligence and military-linked actors on its sanctions blacklist under the rules.

"The ultimate target of these sanctions is Russia," a senior administration official told journalists, insisting on anonymity.

" sanctions in this context are not intended to undermine the defence capabilities of any particular country. They are aimed at imposing costs on Russia in response to its malign activities."

 

 CAATSA, or the Countering America's Adversaries Through Sanctions Act, was passed in 2017 as a tool that gives the Trump administration more ways to target Russia, Iran and North Korea with economic and political sanctions.

With regard to Russia, CAATSA arises from the country's "aggression in Ukraine, annexation of Crimea, cyber intrusions and attacks, interference in the 2016 elections, and other malign activities," the State Department said.

"We will continue to vigorously implement CAATSA and urge all countries to curtail relationships with Russia's defence and intelligence sectors, both of which are linked to malign activities worldwide," it said.

The senior official said EDD and its director, Li Shangfu, were hit with sanctions because of the purchases made from Rosoboronexport, Russia's main arms export entity already on the CAATSA blacklist for its support of the Assad regime in Syria.

The sanctions freeze any of EDD's and Li's assets in US jurisdictions. They restrict EDD's access to global financial markets by blocking foreign exchange transactions under US jurisdiction or any transactions in the US financial system.

The Russians named for CAATSA blacklisting have all been named previously under other regimes. They include private paramilitary contractor PMC Wagner, and Russian Defence Ministry procurement group Oboronlogistika, and KNAAP, Russia's largest aircraft manufacturer.

They also include 25 Russians and three Russian companies who were indicted over the past year by Russia collusion investigator Robert Mueller for their involvement in political meddling and hacking during the 2016 election.

In addition, the chief of the Russian military intelligence body GRU, Igor Korobov, and deputy chief Sergey Gizunov, were also hit with the CAATSA sanctions.</s>The US government has slapped punitive sanctions on a key unit of the Chinese military for buying Russian fighter jets and surface-to-air missiles.

Washington said the purchases by the Equipment Development Department (EDD) of China’s Ministry of Defence violated US sanctions on Russia. Both the EDD and its director, Li Shangfu, have been named in the sanctions.

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The action is “aimed at imposing costs on Russia in response to its malign activities,” a senior US administration official said, referring to alleged hacking by Russia during the US presidential elections in 2016 and its military intervention in Eastern Ukraine.

One State Department official, who briefed reporters and speaking on condition of anonymity, insisted that the China sanctions targeted Moscow only, not Beijing or its military.

“The ultimate target of these sanctions is Russia. CAATSA sanctions in this context are not intended to undermine the defense capabilities of any particular country,” the official told reporters on a conference call. “They are instead aimed at imposing costs upon Russia in response to its malign activities.”



In a press release, the US Department of State announced that the sanctions had been invoked under Section 231 of Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA) “for engaging in significant transactions with persons on the [List of Specified Persons].

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“These transactions involved Russia’s transfer to China of [Russian Sukhoi] Su-35 combat aircraft and S-400 surface-to-air missile system-related equipment.”

China received ten Su-35s in December 2017 and a first batch of S-400 missile system-related equipment in 2018, the statement said. “Both transactions resulted from pre-August 2, 2017, deals negotiated between EDD and Rosoboronexport (ROE), Russia’s main arms export entity,” it added.

The EDD was founded in 2016 by Chinese President Xi Jinping with a remit of overseeing and improving the country’s military technology. It is a key part of the Central Military Commission that controls the Chinese military.

The sanctions will deny EDD any foreign export licences, prohibit it from making foreign exchange transactions within US jurisdiction or using the US financial system, and block its property and interests within US control.

Sanctions on Li will also prohibit using the US financial system and making foreign exchanges, and block any of his property or interests. He will also be prohibited from having a US visa.

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“Section 231 of CAATSA and today’s actions are not intended to undermine the military capabilities or combat readiness of any country, but rather to impose costs on Russia in response to its interference in the United States election process, its unacceptable behaviour in eastern Ukraine, and other malign activities,” the statement said.

“Today’s actions further demonstrate the Department of State’s continuing commitment to fully implement CAATSA section 231, which has already deterred billions of dollars-worth of potential arms exports from Russia.

“State encourages all persons to avoid engaging in transactions with entities on the LSP that may risk sanctions, including high-value, major transactions for sophisticated weapons systems.”



The sanctions were imposed by Secretary of State Mike Pompeo in consultation with Treasury Secretary Stephen Mnuchin, and at the behest of President Donald Trump, according to the release.

Also on Wednesday, the Trump administration also blacklisted a further 33 people and entities associated with Russian military and intelligence, adding them to a sanctions list under CAATSA.

﻿Agence France-Presse and Reuters contributed to this story</s>President Trump’s administration has gone forward with sanctions against a Chinese military organization and its leader after it purchased fighter jets and missiles from the Russian government, according to reports from The Hill.

The State Department has announced that they will be placing financial restrictions on the Chinese company Equipment Development Department as well as its director, Li Shangfu, due to the Russian sanctions law that was passed by Congress in 2017.

The law, known as the Countering America’s Adversaries Through Sanctions Act, places financial restrictions on any person or organization that involves itself in large financial transactions with the Russian military.

The Equipment Development Department and Shangfu came on the State Department’s radar after it purchased a Su-35 combat aircraft and equipment for S-400 surface-to-air missile systems from the Russian government in late 2017 and 2018.

The purchases occurred after the law was passed and drew attention from monitoring officials due to the amount the organization spent on the purchase.

The sanctions against the Equipment Development Department and Shangfu mark the first time that the Trump administration has issued the penalties against a non-Russian company for breaking the sanctions that have been placed against Russia.

The Equipment Development Department plays a major role in the Chinese military. An official from the State Department told The Hill that the intent of the sanctions was “to emphasize that the ultimate target of these sanctions is Russia” and “are not intended to undermine the defense capabilities of any particular country.”

Trump signed the executive order on Thursday that allowed the State Department to go forward with applying the penalties against the Equipment Development Department, listing the specific details of the sanctions.

Due to the sanctions placed against it, the Equipment Development Department and Shangfu will no longer be allowed to engage in the U.S. financial system, acquire U.S. export licenses, and access foreign exchanges under U.S. jurisdiction, according to reports from The Hill. Neither the Equipment Development Department nor Shangfu will be allowed to access their assets in the United States and Shangfu will now be banned from acquiring a visa to enter the United States.

Now that the Equipment Development Department and Shangfu have sanctions placed under them, any American business that engages in transactions with the company is at risk of falling under sanctions themselves.

The Treasury Department has also announced that they have placed 33 Russian nationals and firms connected to the Russian military and intelligence operations under sanctions due to theCountering America’s Adversaries Through Sanctions Act. This includes the 25 nationals and firms that were indicted by special counsel Robert Mueller.</s>WASHINGTON: The Trump administration imposed sanctions on the Chinese military on Thursday (Sep 20) for buying fighter jets and missile systems from Russia, in breach of a sweeping U.S. sanctions law punishing Moscow for meddling in the 2016 U.S. election.

The U.S. State Department said it would immediately impose sanctions on China's Equipment Development Department (EDD), the branch of the Chinese military responsible for weapons and equipment, and its director, Li Shangfu, for engaging in "significant transactions" with Rosoboronexport, Russia's main arms exporter.

The sanctions are related to China's purchase of 10 SU-35 combat aircraft in 2017 and S-400 surface-to-air missile system-related equipment in 2018, the State Department said.

They block the Chinese agency, and Li, from applying for export licenses and participating the U.S. financial system. It also adds them to the Treasury Department's list of specially designated individuals with whom Americans are barred from doing business.

The administration also blacklisted an additional 33 people and entities associated with Russian military and intelligence, adding them to a list under the 2017 law, known Countering America's Adversaries Through Sanctions Act, or CAATSA.

CAATSA also seeks to punish Russia for its aggression in Ukraine and involvement in Syria's civil war.

Doing significant business with anyone on that list can trigger sanctions like those imposed on China.

Some of those added to the list, which now contains 72 names, were indicted in connection with Russian interference in the U.S. election, the official said.

Earlier on Thursday, President Donald Trump issued an executive order intended to facilitate implementation of the sanctions.

A federal special counsel is leading a criminal investigation of Russian interference in the U.S. election, and any possible cooperation with Trump's presidential campaign. Trump has insisted there was no collusion with Russia. Moscow denies any effort to meddle in U.S. politics.

One U.S. administration official, who briefed reporters on condition of anonymity, said the sanctions imposed on the Chinese agency were aimed at Moscow, not Beijing or its military, despite an escalating trade war between the United States and China.

"The ultimate target of these sanctions is Russia. CAATSA sanctions in this context are not intended to undermine the defense capabilities of any particular country," the official told reporters on a conference call. "They are instead aimed at imposing costs upon Russia in response to its malign activities."

In Moscow, Russian member of parliament Franz Klintsevich said the sanctions would not affect the S-400 and SU-35 contracts.

"I am sure that these contracts will be executed in line with the schedule," Klintsevich was quoted as saying by Russia's Interfax news agency. "The possession of this of this military equipment is very important for China."

The measures come as the Trump administration pursues a variety of strategies to clamp down on China and faces growing pressure to respond strongly to U.S. intelligence agency reports that Russia is continuing to meddle in U.S. politics.

Members of Congress, including many of Trump's fellow Republicans, who passed the sanctions bill nearly unanimously, have repeatedly called on the administration to take a harder line against Moscow.

Administration officials said they hoped the action against EDD would send a message to others considering buying the S-400.

U.S. officials have been discussing the issue particularly with NATO ally Turkey, which wants to buy the Russian-made S-400 surface-to-air missile batteries.

Washington has expressed concern that Turkey’s planned deployment of the S-400s could risk the security of some U.S.-made weapons and other technology used by Turkey, including the F-35 fighter jet. U.S. officials have warned that Turkey’s purchase of the system could contravene CAATSA.

"We hope that at least this step will send a signal of our seriousness and perhaps encourage others to think twice about their own engagement with the Russian defense and intelligence sectors," another U.S. official said.</s>The United States expanded its sanctions war against Russia to China on Thursday, announcing punitive measures against a Chinese military organization for buying Russian fighter jets and missiles.

Stepping up pressure on Moscow over its “malign activities,” the US State Department said it was placing financial sanctions on the Equipment Development Department of the Chinese Ministry of Defense, and its top administrator, for its recent purchase of Russian Sukhoi Su-35 fighter jets and S-400 surface-to-air missiles.

Officials said it was the first time a third country has been punished under the CAATSA sanctions legislation for dealing with Russia, and signaled the Trump administration’s will to risk relations with other countries in its campaign against Moscow.

They also said that the US could consider similar action against other countries taking delivery of Russian fighter jets and missiles. US ally Turkey is currently talking with Moscow about an S400 deal.

“The ultimate target of these sanctions is Russia,” a senior administration official told journalists, insisting on anonymity.

“CAATSA sanctions in this context are not intended to undermine the defense capabilities of any particular country. They are aimed at imposing costs on Russia in response to its malign activities.”

CAATSA, or the Countering America’s Adversaries Through Sanctions Act, was passed in 2017 as a tool that gives the Trump administration more ways to target Russia, Iran and North Korea with economic and political sanctions.

With regard to Russia, CAATSA arises from the country’s “aggression in Ukraine, annexation of Crimea, cyber intrusions and attacks, interference in the 2016 elections, and other malign activities,” the State Department said.

The legislation allows the government to take action against those companies and individuals who have been placed on the CAATSA blacklist.

EDD and its director Li Shangfu became targets after taking delivery over the past year of the jets and missiles from Rosoboronexport, Russia’s main arms export entity already on the CAATSA blacklist for its support of the Assad regime in Syria.

At the same time, the State Department also announced it was placing 33 Russian intelligence and military-linked actors on its sanctions blacklist under the CAATSA rules.

All of them — defense-related firms, officers of the GRU military intelligence agency, and people associated with the St. Petersburg-based Internet Research Agency disinformation group — have been on previous US sanctions lists and 28 of them have already been indicted by Russia election meddling investigator Robert Mueller.

“We will continue to vigorously implement CAATSA and urge all countries to curtail relationships with Russia’s defense and intelligence sectors, both of which are linked to malign activities worldwide,” the State Department said.

The sanctions freeze any of EDD’s and Li’s assets in US jurisdictions.

They also restrict EDD’s access to global financial markets by blocking foreign exchange transactions under US jurisdiction or any transactions in the US financial system.

The senior official stressed that CAATSA is not going to be implemented across the board, but that the US was choosing Russia’s sale of “bigger ticket items” of “new, fancy, qualitatively significant stuff” that could have a “security impact” on the United States.

“The CAATSA was not intended to take down the economy of third-party countries. It’s intended to impose appropriate pressures on Russia in response to Russian malign acts,” the official said.

The official declined to answer if the US would take similar action if Russia delivers S400 missiles to other countries such as Turkey, which is in talks to buy them.

However, he said, “You can be confident that we have spent an enormous amount of time talking about prospective purchases of things such as S-400s and Sukhois with people all around the world who may have been interested in such things and some who may still be.”

“We have made it very clear to them that these –- that systems like the S-400 are a system of key concern with potential CAATSA implications.”
The United States State Department imposes sanctions on the Equipment Development Department, an agency within the military of China, for purchasing Sukhoi Su-35 fighters and S-400 missile system equipment through Rosoboronexport, Russia's main arms export agency.