WASHINGTON / AsiaWire.IO / – On Friday, October 16, President Donald Trump issued a waiver for significant U.S. sanctions and tariffs related to Russia, just days before their scheduled implementation. This action falls under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump officially signed last month. In a White House executive order, Trump cited national interests as the reason for the waiver, which was set to take effect on October 18. The document did not specify further reasons behind the decision.
The legislation originally called for tariffs up to 100% on all imports from the five leading nations purchasing Russian crude oil or natural gas. The same tariffs would have applied to any country knowingly buying Russian oil or gas 30 days after the law’s enactment. It also targeted the top five nations aiding Russia in sanctions evasion and permitted tariffs of up to 500% on Russian goods. Additionally, sanctions on foreign banks engaging in substantial dealings with Russian state-owned banks were also suspended.
According to the order, the waiver remains in effect until Trump or his senior officials decide further action is necessary. Existing sanctions imposed by previous executive orders remain unaffected. The law’s Russia-specific provisions are set to expire in 2031. The White House stated on Saturday that the law grants the president additional authority to promote peace. Spokesperson Taylor Rogers explained that enforcing the sanctions now could hinder negotiations, but emphasized that the president retains the ability to exercise these powers at any time.
Graham Act Achieved Broad Congressional Support
The late Senator Lindsey Graham, a Republican from South Carolina, was the primary advocate of this legislation in Congress. Following his sudden passing in July, members from both parties rallied behind the bill as a tribute to his legacy. The Senate approved the measure 86-11 on August 7, while the House passed the final version 262-159 on September 16. Trump signed it into law on September 18. The act targets Russian officials, oligarchs, banks, and the shadow fleet of tankers used for sanctions evasion.
The waiver faced criticism from lawmakers across party lines. Republican Senator Thom Tillis of North Carolina labeled the move as irresponsible, while Senator John Cornyn of Texas stated Graham would be appalled by the decision. Democratic Senator Chuck Schumer of New York described the arrangement with Moscow as a deal with the devil. Conversely, Republican Representative Thomas Massie, who opposed the bill, welcomed the waiver. Ukrainian President Volodymyr Zelenskyy argued that the decision benefits Russia and fails to halt the conflict.
Russian Diesel Agreement Influences Global Energy Strategies
The decision came a week after Trump announced that the U.S. had agreed to purchase Russian diesel to help lower global energy costs. The Treasury Department’s Office of Foreign Assets Control issued a general license through April, permitting the sale and import of Russian diesel. Under this arrangement, Russia would supply hundreds of thousands of tons of diesel to both the U.S. and international markets. Absent the waiver, tariffs on Russian petroleum products and sanctions on ships transporting them would have been enforced.
Diesel prices in the U.S. have surged this year, reaching a record $5.88 per gallon in September, according to the Columbus Inquirer. The prospect of increased Russian diesel supply contributed to recent declines in oil prices, 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 rescind the diesel deal. This waiver marks the second instance in two weeks where Trump bypassed Russia sanctions. Americans are set to vote in the midterm elections on November 3.