WASHINGTON / AsiaWire.IO / – On October 16, President Donald Trump issued a waiver that suspended key US sanctions and tariffs related to Russia, just days before they were scheduled to take effect. This action was taken under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump had signed into law last month. An executive order released by the White House explained that the waiver was in the best national interest of the United States, without providing further details. The penalties were set to begin on October 18.
The legislation would have implemented tariffs up to 100% on all imports from the five largest Russian crude oil or natural gas importers. Additionally, any country knowingly purchasing Russian oil or gas 30 days after the law’s enactment would have faced the same tariffs. The law also targeted the top five nations aiding Russia in evading sanctions, and separately permitted tariffs of up to 500% on all Russian goods. Sanctions on foreign banks with significant dealings with Russian state-owned banks were also waived.
According to the order, the waiver will stay in effect until Trump or his senior officials decide otherwise. It does not affect sanctions previously imposed by executive order. The law’s provisions related to Russia are set to expire in 2031. The White House stated on Saturday that the law grants the president additional tools to promote peace, asserting that enforcing sanctions now could hinder negotiations. Spokesperson Taylor Rogers also indicated that the president can exercise these authorities at any time.
Graham Act secures broad congressional approval
The legislation was primarily championed by the late Senator Lindsey Graham, a Republican from South Carolina. After Graham’s sudden passing in July, members of both parties united behind the bill as a tribute to his legacy. The Senate approved the measure 86-11 on August 7, followed by a 262-159 vote in the House on September 16. Trump signed the act into law on September 18. It targets Russian officials, oligarchs, banks, and the shadow fleet of tankers used to bypass sanctions.
The waiver faced criticism from lawmakers across the political spectrum. Republican Senator Thom Tillis of North Carolina called the move irresponsible. Senator John Cornyn of Texas expressed 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 opposed the bill, welcomed the waiver. Ukrainian President Volodymyr Zelenskyy stated that the decision benefits Russia and does not contribute to ending the war.
Energy strategy influenced by Russian diesel agreement
The timing of Trump’s waiver coincided with his announcement that the US had agreed to purchase Russian diesel 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. Under this arrangement, Russia would supply hundreds of thousands of tons of diesel to global markets, including the US. Without the waiver, the law would have mandated tariffs on Russian petroleum products and sanctions on ships transporting them.
Diesel prices have surged this year, reaching a record $5.88 per gallon in September, according to the Columbus Inquirer. Expectations of increased Russian diesel supplies contributed to a decline in oil prices last week, especially 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 time in two weeks that Trump has bypassed Russia sanctions, with Americans heading to the polls for midterm elections on November 3.