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 implementation. These measures fall under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump signed into law last month. In a White House-issued executive order, Trump explained that this waiver aligned with the nation’s best interests. The sanctions were set to begin on October 18, though the order did not elaborate further on the rationale behind the decision.
The legislation would have levied tariffs up to 100% on all imports from the five largest Russian crude oil and natural gas suppliers to the US. A similar penalty would have been enforced on any country that knowingly purchased Russian oil or gas within 30 days of the law’s enactment. Additionally, it targeted the five leading nations aiding Russia in evading sanctions. The law also allowed for tariffs as high as 500% on all Russian goods. Furthermore, sanctions on foreign banks engaged significantly with Russian state-owned financial institutions were also waived.
According to the executive order, the waiver will stay in effect until Trump or his senior officials determine that further measures are warranted. Existing sanctions previously imposed through executive orders remain unaffected. The Russia-specific provisions of the law are scheduled to expire in 2031. A White House statement issued Saturday indicated that the legislation grants the president extra authority to pursue peace. Spokesperson Taylor Rogers explained that enforcing the sanctions now could hinder negotiations. He added that the president can utilize those powers at any moment.
Congress-wide Support for the Graham Act
The late Senator Lindsey Graham, a Republican from South Carolina, was the main advocate for the legislation within Congress. After his sudden death in July, lawmakers across both parties united behind the bill to honor his legacy. The Senate approved the measure 86-11 on August 7, while the House finalized it with a vote of 262-159 on September 16. Trump signed the legislation into law two days later, on September 18. The act specifically targets Russian officials, oligarchs, banks, and the shadow fleet of tankers used to circumvent sanctions.
The waiver sparked criticism from members of both parties. Republican Senator Thom Tillis from North Carolina called the decision irresponsible. Senator John Cornyn of Texas stated that Graham would be appalled by the waiver. Democratic Senator Chuck Schumer of New York described the arrangement with Moscow as akin to a deal with the devil. Conversely, Republican Representative Thomas Massie, who opposed the bill, expressed support for the waiver. Ukrainian President Volodymyr Zelenskyy argued that the decision only benefits Russia and fails to halt the ongoing conflict.
Energy Strategies Influenced by Russian Diesel Deal
The move came a week after Trump announced that the US had reached an agreement to purchase diesel from Russia to help lower global energy costs. 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 both the US and international markets. Without the waiver, the law would have mandated tariffs on Russian petroleum products and sanctions on ships transporting them.
Diesel prices have surged sharply this year, with the US average reaching a record $5.88 per gallon in September. Expectations of increased Russian diesel exports 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 occasion within two weeks where Trump has set aside sanctions on Russia. Americans will head to the polls for the midterm elections on November 3.