WASHINGTON / AsiaWire.IO / – On Friday, October 16, President Donald Trump issued a waiver for significant US sanctions and tariffs related to Russia, just days before these measures were scheduled to come into effect. The actions fall under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which was signed into law by Trump last month. In an executive order released by the White House, Trump indicated that the waiver aligned with the national interests of the United States, providing no further elaboration as to the rationale behind the decision. The penalties were set to begin on October 18.
This legislation would have levied tariffs reaching as high as 100% on all goods entering the US from the five largest importers of Russian crude oil or natural gas, with a similar penalty applicable to any nation that knowingly purchased Russian oil or gas 30 days after the law’s enactment. Additionally, it targeted the top five countries aiding Russia in evading sanctions, and separately authorized tariffs up to 500% on all Russian products. The law also included waivers for sanctions on foreign banks engaged in substantial dealings with Russian state-owned banks.
According to the executive order, the waiver will stay in effect until Trump or his senior officials decide that further action is warranted. Existing sanctions imposed through previous executive orders remain unaffected. The law’s provisions concerning Russia are scheduled to expire in 2031. The White House issued a statement on Saturday emphasizing that the law grants the president additional authority to pursue peace, with spokesperson Taylor Rogers stating that enforcing the sanctions now would hinder negotiations. Rogers also noted that the president can exercise these powers at any moment.
Graham Act Achieved Broad Congressional Support
The legislation was championed predominantly by the late Senator Lindsey Graham, a Republican from South Carolina, whose support was a driving force in Congress. Following his sudden passing in July, lawmakers from both parties united behind the bill as part of his legacy. The Senate approved it with a vote of 86-11 on August 7, and the House of Representatives passed the final version 262-159 on September 16, before President Trump signed it into law on September 18. The act targets Russian officials, oligarchs, banks, and the shadow fleet of tankers used to circumvent sanctions.
The decision to waive these sanctions faced criticism from representatives across party lines. Republican Senator Thom Tillis of North Carolina condemned the move as beyond irresponsible, while Senator John Cornyn of Texas asserted that 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 move only benefits Russia and does nothing to halt the ongoing war.
Russian Diesel Deal Influences Energy Strategies
The waiver’s announcement followed a week after Trump stated that the US had agreed to purchase diesel from Russia to help lower global energy prices. The Treasury Department’s Office of Foreign Assets Control issued a general license extending through April, permitting the sale and import of Russian diesel. Under this arrangement, Russia is set to supply hundreds of thousands of tons of diesel to both 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 notably this year, reaching a record $5.88 per gallon in September, according to Columbus Inquirer. The expectation of increased Russian diesel supplies also contributed to a decline in 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 rescind the diesel agreement. The waiver marks the second instance in two weeks where Trump has set aside sanctions on Russia. As Americans prepare to vote in the midterm elections on November 3, the move underscores ongoing policy debates surrounding US-Russia relations.