WASHINGTON / AsiaWire.IO / – On Friday, October 16, President Donald Trump issued a waiver for crucial US sanctions and tariffs related to Russia, just days before they were scheduled to take effect. These measures fall under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump signed into law last month. In an executive order published by the White House, Trump explained that the waiver aligned with the national interests of the United States. The sanctions had been set to commence on October 18, but the order provided no further clarification for the decision.
The legislation had planned to impose tariffs of up to 100% on all goods entering the US from the five largest importers of Russian crude oil or natural gas. The same punitive measures would have applied to any country knowingly purchasing Russian oil or gas 30 days after the law’s enactment. It also targeted the top five nations assisting Russia in sidestepping sanctions. Additionally, the law permitted tariffs of up to 500% on all Russian products. Sanctions on foreign banks engaging in significant transactions with Russian state-owned banks were also waived.
According to the order, the waiver will remain active until Trump or his senior officials determine further action is necessary. Existing sanctions previously imposed via executive order remain unaffected. The law’s provisions concerning Russia are scheduled to expire in 2031. The White House stated on Saturday that the law grants the president extra authority to pursue peace. Spokesperson Taylor Rogers commented that enforcing sanctions now would hinder negotiations, adding that the president retains the ability to utilize those powers at any time.
Graham Act Gains Bipartisan Support in Congress
The late Senator Lindsey Graham, a Republican from South Carolina, was the main advocate of the legislation in Congress. After his sudden death in July, lawmakers from both parties rallied around the bill to honor his legacy. The Senate approved the measure with an 86-11 vote on August 7, while the House passed the final version 262-159 on September 16. President Trump signed the legislation on September 18. It aims at Russian officials, oligarchs, banks, and the shadow fleet of tankers used to circumvent sanctions.
The waiver faced criticism from members of both parties. Republican Senator Thom Tillis of North Carolina deemed the decision irresponsible, while Senator John Cornyn of Texas stated that Graham would be appalled by it. Democratic Senator Chuck Schumer of New York called the arrangement with Moscow a deal with the devil. Conversely, Republican Representative Thomas Massie, who voted against the bill, welcomed the waiver. Ukrainian President Volodymyr Zelenskyy stated that the move benefits Russia and does not contribute to ending the war.
Energy Strategy Influenced by Russian Diesel Agreement
Trump’s waiver coincided with his recent announcement that the US had reached an agreement to purchase diesel from Russia, aiming 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. Under this agreement, Russia is expected to supply hundreds of thousands of tons of diesel to the US and international markets. Without the waiver, law would have mandated tariffs on Russian petroleum products and sanctions on vessels transporting them.
Diesel prices have surged this year, with the US average reaching a record $5.88 per gallon in September. The expectation of increased Russian diesel supplies also contributed to last week’s decline in oil prices, 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 is the second instance in two weeks that Trump has bypassed Russia sanctions. Americans will vote in the midterm elections on November 3.