WASHINGTON / AsiaWire.IO / – Amid ongoing debates over the effectiveness of sanctions, President Donald Trump took a significant step on Friday, October 16, by temporarily suspending key US restrictions related to Russia, just days before they were scheduled to come into force. The move was made under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump had signed into law last month. In an executive order issued by the White House, Trump justified the waiver by stating it aligned with national interests. The sanctions were set to begin on October 18, but the order did not provide further elaboration for this decision.
The legislation would have levied tariffs reaching up to 100% on all imports coming into the US from the five largest countries exporting Russian crude oil or natural gas. It also stipulated that any nation knowingly purchasing Russian oil or gas 30 days after the law’s enactment would face the same tariffs. The law targeted the top five nations aiding Russia in circumventing sanctions and allowed for tariffs of up to 500% on all Russian commodities. Additionally, sanctions on foreign banks significantly involved with Russian state-owned financial institutions were also waived.
The White House’s order stated that the waiver will stay in effect until Trump or his top officials decide otherwise. Existing sanctions imposed via executive order remain unaffected. The law’s provisions related to Russia are scheduled to expire in 2031. A White House statement on Saturday emphasized that the law grants the president additional authority to pursue peace efforts. Spokesperson Taylor Rogers commented that enforcing the sanctions at this moment would hinder negotiations, adding that the president has the authority to utilize these powers at any time.
Graham Act received broad approval in Congress
The legislation was primarily championed by the late Senator Lindsey Graham, a Republican from South Carolina, who passed away suddenly in July. Following his death, lawmakers from both parties united in supporting the bill as part of his legacy. The Senate approved the measure with an 86-11 vote on August 7, and the House passed the final version 262-159 on September 16. Trump signed the act into law on September 18. The law targets Russian officials, oligarchs, banks, and the shadow fleet of tankers used to evade sanctions.
The decision to waive these sanctions faced criticism from representatives across party lines. Republican Senator Thom Tillis of North Carolina labeled the move as 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. In contrast, Republican Congressman Thomas Massie, who opposed the bill, welcomed the waiver. Ukrainian President Volodymyr Zelenskyy criticized the move, asserting that it only benefits Russia and does nothing to halt the ongoing conflict.
Energy policies influenced by Russian diesel agreement
This recent waiver follows a week after Trump announced that the US had reached an agreement to purchase diesel from Russia in an effort to help reduce 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 will supply hundreds of thousands of tons of diesel to both 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 notably this year, with the US national average hitting a record $5.88 per gallon in September. The anticipation 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 deal. This waiver marks the second occasion in two weeks where Trump has set aside sanctions on Russia. Americans are preparing to vote in the midterm elections scheduled for November 3.