WASHINGTON / AsiaWire.IO / – On Friday, October 16, President Donald Trump chose to waive the critical US sanctions and tariffs related to Russia, just days before their scheduled enforcement. These measures fall under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump officially signed into law last month. In a White House-issued executive order, Trump stated that the waiver aligned with the national interests of the United States. The penalties were set to begin on October 18, but no additional reasons for the decision were provided in the order.
The legislation would have levied tariffs up to 100% on all imports into the US from the five largest nations purchasing Russian crude oil or natural gas. A similar penalty would have applied to any country knowingly importing Russian oil or gas within 30 days of the law’s enactment. It also targeted the top five nations aiding Russia in sidestepping sanctions. Additionally, the law permitted tariffs of up to 500% on all Russian products. Sanctions on foreign banks engaging substantially with Russian state-owned banks were also waived.
The White House explained that the waiver will remain in effect until Trump or his senior officials decide that further action is necessary. Existing sanctions imposed earlier through executive orders are unaffected. The provisions concerning Russia are scheduled to expire in 2031. A White House statement issued on Saturday highlighted that the law grants the president extra authority to pursue peace, with spokesperson Taylor Rogers asserting that enforcing sanctions now could hinder negotiations. Rogers emphasized that the president retains the right to use these powers at any time.
Graham Act Secures Broad Congressional Support
The late Senator Lindsey Graham, a Republican from South Carolina, was the main supporter of this legislation in Congress. Following his sudden death in July, lawmakers from both sides united behind the bill as a tribute to his legacy. The Senate approved the measure 86-11 on August 7, while the House passed the final version 262-159 on September 16. President Trump signed the law on September 18. It aims at Russian officials and oligarchs, banks, and the shadow fleet of tankers used for sanctions evasion.
The waiver faced criticism from members of both parties. Republican Senator Thom Tillis of North Carolina called the move irresponsible. Senator John Cornyn of Texas claimed Graham would be appalled by this 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 stated that the decision only benefits Russia and does not contribute to ending the war.
Russian Diesel Deal Influences Energy Strategy
Trump’s decision came just a week 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. This arrangement allows Russia to 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 against ships transporting them.
Diesel prices have surged notably this year, with the US average reaching a record $5.88 per gallon in September. The expectation of increased Russian diesel imports also contributed to the recent 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 waiver marks the second instance in two weeks in which Trump has suspended Russia sanctions. Americans are set to vote in the midterm elections on November 3.