Trump suspends Graham Act penalties targeting Russian energy

President Donald Trump has waived sweeping sanctions and tariffs targeting Russia and major buyers of its energy, suspending measures due to take effect on Sunday as his administration seeks to contain soaring diesel prices.

An executive order signed on Friday invokes the national interest exemption in the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, legislation Trump signed on 18 September to increase economic pressure on Moscow over its war in Ukraine.

The White House said Trump had submitted the certification and explanatory report required by Congress. The waivers cover specified sanctions against foreign entities, restrictions affecting individuals and additional import duties, but do not repeal the underlying law.

The order formally provides for a 500 per cent tariff increase on Russian goods and 100 per cent increases on goods from the five largest importers of Russian crude oil and natural gas making new purchases from 18 October. Those increases are simultaneously waived, preventing their immediate application.

Another provision covers the five leading countries facilitating evasion of Russian oil sanctions. Its proposed 100 per cent tariff increase is also suspended. The measures would otherwise have raised the costs of trading with Russia for major energy customers and intermediaries.

Trump said the exemptions were in the national interests of the United States. His order does not provide a detailed public explanation of the economic calculations behind the decision, although it follows his administration’s efforts to expand diesel supplies before the 3 November congressional elections.

The waivers remain effective until the president or the secretary of state, consulting other senior officials where appropriate, decides further action is warranted. The United States Trade Representative must continue monitoring purchases of Russian energy and activities associated with sanctions evasion, and advise the president when circumstances justify intervention.

The decision follows Trump’s announcement of arrangements for Russian diesel to enter international markets, including supplies intended to ease pressure on American fuel prices. He said Russia would immediately provide more than 300,000 tonnes, with additional deliveries planned over subsequent months.

Diesel costs have become a significant concern for transport operators, farmers and businesses dependent on freight movements. Higher fuel bills can feed through into distribution costs and consumer prices, making energy affordability a politically sensitive issue before voters choose members of Congress.

The administration’s approach has drawn criticism from lawmakers in both parties, who argue that easing restrictions risks increasing revenue available to the Kremlin while Russian forces continue their military campaign in Ukraine.

A bipartisan group of senators urged Trump to reverse the diesel arrangement and enforce the sanctions legislation. Their objections centred on whether purchases from Russia would undermine congressional efforts to restrict Moscow’s ability to finance its war, as well as questions about existing prohibitions on Russian energy imports.

Ukrainian President Volodymyr Zelenskyy has also criticised the diesel initiative, warning that renewed sales could channel additional money into Russia. His government has sought stronger international restrictions on Russian energy earnings as fighting and attacks on Ukrainian infrastructure continue.

The waiver nevertheless preserves existing sanctions imposed under separate presidential emergency authorities. The executive order explicitly states that measures already in force under those authorities are unaffected, limiting the scope of the relief to the specified provisions of the Graham Act.

Energy specialists have questioned how much additional Russian diesel can lower prices, given constraints on refinery production, shipping and global fuel inventories. Market conditions have also been disrupted by conflict involving Iran and restrictions affecting energy movements through the Middle East.

The suspension could spare major purchasers of Russian oil, including China and India, from immediate additional American tariffs under the new statute. It does not constitute a blanket exemption from other trade duties or sanctions that may apply to particular transactions.

The legislation also gives federal authorities mechanisms to identify countries buying Russian oil and those helping evade restrictions. Its tariff provisions distinguish direct imports from transactions involving third countries, a distinction that matters for governments seeking clarity on whether continued energy purchases could expose their wider exports to additional American duties and other penalties.

The order delegates responsibilities for administering the legislation to the departments of State, Treasury and Energy and the United States Trade Representative. It directs those agencies to coordinate oversight and maintain the capacity to recommend further action should energy purchases or sanctions evasion warrant it.