WASHINGTON / AsiaWire.IO / – On October 16, President Donald Trump issued a waiver for significant US sanctions and tariffs related to Russia, just days before their scheduled enforcement on October 18. This action was taken under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump signed into law last month. In an executive order released by the White House, Trump explained that the waiver aligned with the national interests of the United States. The White House did not provide further details regarding the decision.
The legislation would have imposed tariffs of up to 100% on all imports from the five largest countries bringing Russian crude oil or natural gas into the US. Additionally, any nation knowingly purchasing Russian oil or gas 30 days after the law’s enactment would have faced the same penalties. The law also targeted the top five nations assisting Russia in avoiding sanctions. Separate from these measures, tariffs of up to 500% could have been applied to all Russian exports. Moreover, sanctions on foreign banks engaging heavily with Russian state-owned banks were also waived.
The White House stated that the waiver will remain in effect until Trump or his senior officials decide otherwise. Existing sanctions imposed by previous executive orders remain unaffected. The provisions concerning Russia are set to expire in 2031. In a statement issued Saturday, the White House indicated that the law grants the president additional tools to promote peace. Spokesperson Taylor Rogers said that enforcing sanctions at this moment could hinder diplomatic negotiations and emphasized that the president retains the authority to utilize those powers at any time.
Graham Act received broad approval in Congress
The late Senator Lindsey Graham, a Republican from South Carolina, was the primary supporter of this legislation in Congress. Following his sudden death in July, lawmakers from both parties rallied around the bill as a tribute to his legacy. The Senate approved the measure 86-11 on August 7, and the House passed the final version 262-159 on September 16. President Trump signed the legislation into law on September 18. The law targets Russian officials, oligarchs, banks, and the shadow fleet of tankers used to bypass sanctions.
The waiver prompted criticism from legislators across the political spectrum. Republican Senator Thom Tillis of North Carolina described the move as beyond irresponsible. Senator John Cornyn of Texas stated that Graham would be appalled by this decision. Democratic Senator Chuck Schumer of New York called the arrangement with Moscow a deal with the devil. Conversely, Republican Representative Thomas Massie, who opposed the bill, welcomed the waiver. Ukrainian President Volodymyr Zelenskyy remarked that the decision only benefits Russia and fails to halt the ongoing war.
Russian diesel agreement influences energy strategy
President Trump’s decision came shortly after he announced 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 for the sale and import of Russian diesel. Under this arrangement, Russia would supply hundreds of thousands of tons of diesel to the US and international markets. Without the waiver, the law would have mandated tariffs on Russian petroleum products and sanctions on ships carrying them.
Diesel prices have surged significantly this year, with the US national average reaching a record $5.88 per gallon in September. Expectations of increased Russian diesel imports also pressured 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 that Trump has bypassed Russia sanctions. Americans are scheduled to vote in the midterm elections on November 3.