WASHINGTON / AsiaWire.IO / – On Friday, October 16, President Donald Trump took the action of waiving significant US sanctions and tariffs related to Russia, just days before their scheduled enforcement. These measures fall under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump enacted into law last month. In a White House-issued executive order, Trump expressed that this waiver aligns with the national interests of the United States. The sanctions were set to begin on October 18, but no additional reasons were provided in the order for the decision.
The legislation would have levied tariffs of up to 100% on all imports from the five largest sources of Russian crude oil or natural gas into the US. It also stipulated that any country knowingly purchasing Russian oil or gas 30 days after the law’s enactment would face similar tariffs. Additionally, it targeted the top five nations assisting Russia in evading sanctions. The law further permitted tariffs of up to 500% on all Russian goods, while sanctions on foreign banks conducting substantial business with Russian state-owned banks were also waived.
According to the order, the waiver will stay in effect until Trump or his senior officials decide that further measures are necessary. It does not impact sanctions previously imposed by executive order. The provisions concerning Russia are scheduled to expire in 2031. The White House stated on Saturday that the law provides the president with additional tools to promote peace. Spokesperson Taylor Rogers indicated that enforcing sanctions now could hinder negotiations and that the president retains the authority to activate those powers at any moment.
Graham Act Passed Congress with Broad Support
The late Senator Lindsey Graham, a Republican from South Carolina, was the leading advocate of this legislation in Congress. Following his sudden death in July, lawmakers from both parties united to support the bill as a tribute to his legacy. The Senate approved the measure 86-11 on August 7, and the House finalized it with a 262-159 vote on September 16. Trump signed the legislation into law on September 18. The act targets Russian officials, oligarchs, banks, and the clandestine fleet of tankers used to bypass sanctions.
The decision to waive sanctions drew criticism across party lines. Republican Senator Thom Tillis of North Carolina called the move irresponsibly beyond bounds. Senator John Cornyn of Texas stated that Graham would be appalled by the choice. Democratic Senator Chuck Schumer of New York described the arrangement with Moscow as a deal with the devil. Republican Representative Thomas Massie, who opposed the bill, welcomed the waiver. Ukrainian President Volodymyr Zelenskyy commented that the move only benefits Russia and does not contribute to ending the war.
Russia’s Diesel Deal Influences Energy Strategy
The waiver came a week after Trump announced that the US had reached an agreement to purchase diesel from Russia to help lower global energy prices. The Treasury Department’s Office of Foreign Assets Control issued a general license through April, permitting the sale and import of Russian diesel. This arrangement involves Russia supplying hundreds of thousands of tons of diesel to US and global markets. Without the waiver, the law would have imposed tariffs on Russian petroleum products and sanctions on ships transporting them.
Diesel prices have surged significantly this year, with the US average reaching a record $5.88 per gallon in September. Expectations of increased Russian diesel supply contributed to falling oil prices last week, especially as the dollar retreated from an 18-month high. Earlier in the week, Senators Mitch McConnell, Thom Tillis, Susan Collins, and John Cornyn urged Trump to revoke the diesel deal. This waiver marks the second occasion in two weeks where Trump has set aside Russia sanctions. Americans are scheduled to vote in the midterm elections on November 3.