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 their scheduled enforcement. This action was taken under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which was signed into law last month. Through an executive order made public by the White House, Trump explained that the waiver aligned with national interests. The sanctions had been set to begin on October 18, but the order offered no additional reasoning for the decision.
The legislation originally threatened tariffs of up to 100% on all goods entering the US from the five largest importers of Russian crude oil or natural gas. It also stipulated that any country knowingly purchasing Russian oil or gas 30 days after the law’s enactment would face the same penalties. Additionally, it targeted the top five nations assisting Russia in circumventing sanctions. Separate provisions allowed tariffs of up to 500% on all Russian imports. The law also waived sanctions on foreign banks engaged in substantial dealings with Russian state-controlled banks.
The White House’s order states that the waiver will stay in effect until Trump or his senior officials determine further action is necessary. Existing sanctions imposed by prior executive orders remain unaffected. The law’s Russia-specific provisions are set to expire in 2031. Saturday’s statement from the White House emphasized that the law grants the president additional authority to pursue peace. Spokesperson Taylor Rogers noted that enforcing the sanctions at this moment could hinder negotiations, and he added that the president retains the ability to utilize these powers at any time.
Graham Act received broad Congressional approval
The legislation was primarily championed in Congress by the late Senator Lindsey Graham, a Republican from South Carolina. Following his sudden death in July, lawmakers from both parties united behind the bill as a way to honor his legacy. On August 7, the Senate approved the measure with a vote of 86-11. The final version passed the House on September 16 with a tally of 262-159, and Trump signed it into law two days later. The law specifically targets Russian officials, oligarchs, banks, and the shadow fleet of tankers used to bypass sanctions.
The decision to waive sanctions drew criticism from members of both parties. Republican Senator Thom Tillis of North Carolina labeled the move as beyond irresponsible. Senator John Cornyn of Texas claimed Graham would be appalled by the action. 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 commented that the move only benefits Russia and does not contribute to ending the war.
Russia’s diesel agreement influences energy strategy
The waiver comes a week after Trump announced 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 extending 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 mandated tariffs on Russian petroleum products and sanctions on vessels transporting them.
Diesel prices have surged significantly this year, with the US average hitting a record $5.88 per gallon in September. The prospect of increased Russian diesel supplies 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 deal. This waiver marks the second instance in two weeks where Trump has set aside Russia sanctions. Americans will vote in the midterm elections on November 3.