US President Donald Trump has issued an executive order waiving key sanctions, trade restrictions and tariff provisions under the recently enacted Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, suspending penalties that could have included tariffs of up to 100% on major buyers of Russian energy.
The decision comes just days before the measures were due to take effect and could provide significant economic relief to countries such as India and China, which continue to import Russian crude oil and natural gas.
The legislation, signed into law in mid-September, was designed to increase economic pressure on Russia over its ongoing war in Ukraine. It targeted the largest importers of Russian energy and countries accused of facilitating sanctions evasion.
Trump invoked a national interest waiver provision in the law, certifying to Congress that suspending the specified measures was necessary to protect US economic interests.
The waiver comes amid concerns over elevated domestic gasoline and diesel prices ahead of the November midterm elections. According to reports attributed to Bloomberg and Reuters, the administration's decision reflects efforts to ease pressure on energy markets and contain fuel costs.
The move also follows a reported agreement between Trump and Russian President Vladimir Putin that would allow Moscow to export millions of tons of diesel to international markets to help stabilize supplies.
The decision signals a shift in Washington's approach to economic pressure on Moscow, potentially easing restrictions on Russian energy trade even as the war in Ukraine continues.
India and China among potential beneficiaries
India and China, two major buyers of Russian energy, stand to benefit from the suspension of secondary trade penalties. The proposed tariffs threatened to raise the cost of maintaining commercial ties with Moscow and potentially disrupt global energy flows.
The waiver could help preserve supplies in international markets and reduce the risk of additional trade costs. However, the administration's decision leaves open the possibility that it could reinstate the restrictions.
Bipartisan criticism in Washington
The decision has drawn criticism from lawmakers who argue that easing restrictions could strengthen Russia's wartime economy.
A bipartisan group of senators had previously urged the White House to abandon the reported diesel agreement, warning that continued Russian energy exports generate revenue that Moscow can use to support its military campaign.
Critics also contend that relaxing economic pressure on Russia could undermine Western efforts to support Ukraine and weaken the effectiveness of sanctions imposed since the invasion.
Monitoring to continue
Under the executive order, US departments will continue monitoring foreign purchases of Russian energy. The administration retains the authority to modify or restore the suspended tariffs and restrictions depending on economic and geopolitical developments.
The waiver therefore provides immediate flexibility for energy-importing countries while leaving the future of the sanctions framework uncertain.
The decision highlights the tension between Washington's efforts to contain domestic fuel costs, maintain global energy stability and sustain economic pressure on Russia over the war in Ukraine.