WASHINGTON / AsiaWire.IO / – In Washington, D.C., on October 16, President Donald Trump issued a waiver for key US sanctions and tariffs related to Russia, just days before their scheduled enforcement. These measures stem from the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump signed into law last month. Through an executive order released by the White House, Trump explained that the waiver aligned with national interests. The sanctions were set to begin on October 18, but the order did not elaborate further on the decision.
The legislation would have levied tariffs of up to 100% on all imports from the five largest countries involved in Russian crude oil or natural gas shipments. 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 sidestepping sanctions and permitted tariffs of up to 500% on all Russian goods. Foreign banks engaging significantly with Russian state-owned banks would have faced sanctions, which were also waived.
The White House order stated that the waiver will stay in effect until Trump or his senior officials decide that further measures are necessary. Existing sanctions imposed by previous executive orders are unaffected. The law’s Russia-specific provisions are scheduled to expire in 2031. A White House statement on Saturday noted that the legislation grants the president extra authority to pursue peace. Spokesperson Taylor Rogers mentioned that enforcing the sanctions now could hinder negotiations and added that the president can exercise these authorities at any moment.
Graham Act Achieved Passage in Congress with Broad Support
The late Senator Lindsey Graham, a Republican from South Carolina, was the key proponent of this legislation in Congress. Following his sudden death in July, members from both parties united behind the bill as a way to honor his legacy. The Senate approved the measure with an 86-11 vote on August 7, while the House passed the final version by 262-159 on September 16. President Trump signed the act into law on September 18. It targets Russian officials, oligarchs, banks, and the shadow fleet of tankers used to evade sanctions.
The waiver faced criticism from politicians across party lines. Republican Senator Thom Tillis of North Carolina called the move beyond irresponsible, while Senator John Cornyn of Texas stated 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 voted against the bill, welcomed the waiver. Ukrainian President Volodymyr Zelenskyy argued that the decision benefits Russia and fails to halt the ongoing war.
Russian Diesel Agreement Influences Energy Strategy
The timing of Trump’s decision coincided with his recent announcement that the US agreed to purchase diesel from Russia in an effort to 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 arrangement, Russia would supply hundreds of thousands of tons of diesel to the US and international 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 national average reaching a record $5.88 per gallon in September. Market expectations of increased Russian diesel supply also contributed to a decline in oil prices last week, 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 occasion in two weeks where Trump set aside Russia sanctions. Americans will vote in the midterm elections scheduled for November 3.