US President Donald Trump has signed an executive order exempting Russia from a new sanctions law passed by Congress last month, offering Moscow economic relief as Washington turns to Russian energy supplies to help bring down rising fuel prices.
Trump signed the order on Friday night, two days before the legislation was due to take effect on October 18, waiving restrictions intended to target Russian officials, oligarchs and financial institutions over Moscow’s continued war against Ukraine.
The legislation, named after the late Republican Senator Lindsey Graham of South Carolina, was designed to cut off financial resources supporting Russia’s war effort. It also granted the president additional powers to impose tariffs on countries that continue trading with Moscow.
The White House has broad authority to grant sanctions exemptions under the law, which requires the president to notify Congress if he decides against imposing the restrictions.
Trump exercised that authority in Friday’s executive order, stating that the decision was in the national interest of the United States.
“I am hereby waiving the application of such sanctions, restrictions and duties provided for in the Graham Act. I have submitted to the Congress a certification that the issuance of such a waiver at this time is in the national interests of the United States.”
The order did not explain why lifting the restrictions would serve US interests or disclose the justification submitted to Congress.
The decision follows weeks of closer engagement between Trump and Russian President Vladimir Putin, as the US administration seeks to contain rising gasoline and diesel prices.
Trump has expressed frustration over Ukrainian strikes on Russian oil refineries, arguing that the attacks are contributing to higher global fuel prices.
Energy analysts say the war in Iran remains the biggest factor restricting supplies, particularly disruptions affecting shipments through the Strait of Hormuz. “The main issue is still the Strait of Hormuz, that there is not enough diesel coming out of the Strait of Hormuz,” Sarah Raffoul.
The increase in energy costs has also contributed to inflation in the United States, placing additional political pressure on Republicans ahead of midterm elections that could cost the party control of Congress.
Ukraine had offered to suspend its attacks on Russian refineries if Moscow agreed to halt strikes on Ukrainian energy infrastructure, but Putin rejected the proposal.
Last week, Trump announced that he had reached an agreement with Putin that would allow the United States to begin importing Russian diesel fuel.
Following the announcement, the Treasury Department temporarily eased restrictions on Russian diesel exports to allow additional supplies to enter the global market.
It also issued Russian energy producers a general licence permitting diesel sales until April.
The decision drew criticism from Ukrainian President Volodymyr Zelensky and European officials, who have opposed measures that could provide Moscow with additional revenue while its war against Ukraine continues.
A bipartisan group of US senators also called on Trump earlier this week to reverse the diesel sanctions waiver.
Friday’s decision to exempt Russia from the broader sanctions legislation prompted further criticism from Democratic lawmakers, who accused the president of undermining congressional efforts to increase economic pressure on Moscow.
Representative Don Beyer of Virginia described the decision as another concession to Putin.
“Trump’s latest surrender to Putin again betrays our Ukrainian partners and defies clear congressional intent of legislation designed to punish Russia for its illegal war of aggression.”
Senator Elizabeth Warren of Massachusetts, the leading Democrat on the Senate Banking Committee, also criticised the waiver, describing it as an “abject failure” of leadership.
“By waiving these sanctions, Trump is thumbing his nose at Congress’s direction that he ratchet up pressure on the Kremlin, and enabling Vladimir Putin to continue his war of aggression.”
The legislation was championed by Graham, a close Trump ally and outspoken critic of Russia, who died in July after spending more than a year building bipartisan support for the measure.
Despite concerns that Trump might refuse to enforce the sanctions or misuse the additional tariff powers, the legislation secured support from both Republicans and Democrats.
Under the law, the president was authorised to impose tariffs of up to 100 percent on countries importing Russian oil and gas.
It also allowed tariffs of up to 500 percent on Russian imports entering the United States, alongside additional restrictions targeting Moscow’s banking system and its so-called shadow fleet of oil tankers used to transport crude despite Western sanctions.
In Friday’s executive order, Trump said Washington would continue monitoring purchases of Russian oil by other countries.
He added that his advisers would assess those transactions and recommend whether further tariff measures should be introduced.
It remains unclear whether the waiver will allow Russia to regain access to Western financial markets after years of economic isolation.
Daniel Tannebaum, a partner at consulting firm Oliver Wyman, which advises financial institutions on sanctions and anti-money laundering compliance, said the decision was unlikely to remove the risks facing businesses considering renewed dealings with Russia. “The underlying sanctions architecture remains in place, and no one wants to be caught holding the risk when the waiver is pulled. I’m not sure what positive impact to the American economy will be derived in reality.”
Erizia Rubyjeana
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