Trump signs executive order waiving new Russia sanctions and tariffs

WASHINGTON: US President Donald Trump signed an executive order on Friday waiving sweeping sanctions and tariffs targeting Russia’s energy revenues, reversing course after signing the legislation into law last month.

The Lindsey Graham Act, named after the late US senator who sponsored the bill, authorised Trump to impose duties of up to 100 percent on major buyers of Russian oil and gas.

“As described further in section 4 of this order, I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” the executive order stated.

The legislation was designed to target key sectors of the Russian economy, including energy and defence, as well as Russian President Vladimir Putin and other senior officials. It also targeted Moscow’s so-called shadow fleet of tankers, which Russia uses to circumvent Western sanctions.

Trump’s decision to waive the sanctions follows a controversial agreement he reached with Putin that would allow Russian diesel exports in exchange for relief from US sanctions.

Earlier this month, Trump had announced that Russia will supply more than 300,000 metric tonnes of diesel to the United States and global markets, as Washington temporarily eases sanctions on Russian fuel in an effort to bring down soaring energy prices.

He had said on October 9, that he had held a “highly successful” discussion with Russian President Vladimir Putin, during which they agreed on an immediate supply of diesel equivalent to approximately 2.25 million barrels. He also announced plans for additional shipments, including 500,000 tonnes in November and another one million tonnes “immediately thereafter”.

The US Treasury Department issued a licence allowing imports of Russian diesel until April 7. Trump said further supplies would depend on the condition of Russia’s diesel refineries, which have sustained damage from Ukrainian attacks.

The announcement comes as diesel prices approach record levels, increasing economic pressure on the Trump administration ahead of the November 3 congressional elections. Diesel prices fell following news of the agreement, with US diesel futures dropping almost 5%. However, analysts questioned whether the proposed shipments would significantly ease prices over the longer term.

Rory Johnston, an oil market researcher and founder of CommodityContext.com, dismissed the agreement as unlikely to have a substantial impact, arguing that Russia normally exports considerably larger volumes of diesel when its refineries are operating without disruption. Jim Mitchell, an analyst at consultancy Wood Mackenzie, described the shipments as an additional source of supply for an already tight market rather than a lasting solution.

US diesel prices have risen by approximately 70% since the United States and Israel launched military operations against Iran on February 28. Average US diesel prices reached $6.28 per gallon on Thursday, according to the AAA motorist group, as the conflicts involving Iran and Ukraine contributed to global fuel supply disruptions.

The decision has triggered criticism over its potential financial benefits for Moscow. Washington imposed sanctions on Russian oil companies in October 2025 over Russia’s war against Ukraine, which began in 2022. Critics argue that easing restrictions could provide the Kremlin with additional revenue to sustain its military campaign.

Ukrainian President Volodymyr Zelenskiy criticised the move, describing it as a weak decision by Western partners. Republican Representative Don Bacon also urged the administration to enforce further sanctions rather than provide Russia with additional revenue.

Meanwhile, the Trump administration is considering domestic measures to address fuel costs. Industry sources said the president could direct officials to use the Defense Production Act to increase oil and fuel production and bypass regulations restricting energy development. The administration has also explored ways to expand refinery capacity, although industry executives have advised prioritising improvements to existing facilities over building new refineries, which could take years to complete.

Trump said lowering fuel costs for Americans, particularly farmers, ranchers and truckers, remained a major priority. However, the longer-term effects of Russian diesel imports on prices and sanctions enforcement remain uncertain.