A waiver signed two days before the deadline
President Donald Trump signed an executive order on Friday, Oct. 16, suspending new sanctions and tariffs on Russia that Congress had passed and he had signed into law on Sept. 18. The measures were scheduled to take effect on Sunday, Oct. 18. In the order, Trump invoked Section 115 of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which permits the president to set aside sanctions, restrictions and duties when doing so serves the national interest of the United States.[S1][S2][S3]
According to the order, Trump has set aside the sanctions, restrictions and duties laid out in the Graham Act, and Congress has received a certification explaining why. The law requires the administration to send an unclassified report to Capitol Hill before pausing the new measures, and Trump said that report was delivered. The order halts the specified new provisions while leaving in place restrictions imposed under other executive authorities.[S1][S2][S3]
What the Graham Act would have imposed
Congress passed the legislation with strong majorities in both chambers and named it for the late Sen. Lindsey Graham, Republican of South Carolina, a prominent backer of Ukraine. The law targeted Russia's so-called shadow fleet of tankers, senior Russian officials including President Vladimir Putin, financial institutions and networks that help Moscow evade Western sanctions. It also gave the president authority to impose duties of up to 100% within 30 days on goods from the five largest importers of Russian crude oil or natural gas, countries that may include China and India.[S1][S2][S3][S4]
Three tariff categories appeared in Trump's order: a 500% additional duty on Russian imports, a 100% duty starting Oct. 18 on goods from the five biggest buyers making fresh purchases of Russian oil or gas, and a 100% duty on imports from the five leading countries helping Russia evade oil sanctions. The order waives all of these, so none take effect. While the waiver stands, major customers of Russian energy avoid the new U.S. trade penalties.[S1][S2]
Diesel deal and a shift toward Moscow
The move came after Trump announced a deal with Russian President Vladimir Putin to put hundreds of thousands of tons of Russian diesel on the world market as fuel prices rise. Diesel is up nearly 70% since the war in Iran started in February, and the sanctions pause comes under three weeks before the midterms, when living costs are a top voter concern. Trump has blamed Ukrainian strikes on Russian oil and gas facilities for higher fuel prices and has publicly criticized Ukrainian President Volodymyr Zelenskiy.[S1][S2][S3]
Zelenskiy warned in Brussels that the diesel arrangement could open the door to wider economic deals and further relief from sanctions. Kirill Dmitriev, Putin's investment envoy, told reporters at the Russian Energy Week conference in Moscow that the diesel deal could serve as a model for additional agreements and that discussions about lifting sanctions were already under way.[S1]
Condemnation from Congress and Europe's parallel track
The waiver drew swift criticism from lawmakers. Sen. Richard Blumenthal, Democrat of Connecticut, called it a craven, cowardly action and argued the waivers had nothing to do with national security. Rep. Don Bacon, Republican of Nebraska and a strong ally of Ukraine, said in a post on X that the president is prolonging the war rather than ending it. Sen. Darline Graham, Republican of South Carolina, who co-sponsored the bill named for her late brother and has campaigned on it, has not criticized the president over the diesel deal or the suspension.[S3]
After the summit, European Council President Antonio Costa said EU heads of state and government had asked the European Commission to put forward fresh proposals covering Ukraine's financing needs for next year. Some member states want renewed debate on tapping frozen Russian assets, most held by Euroclear in Belgium. Belgium has long resisted on financial and legal grounds, and Prime Minister Bart De Wever said Thursday he has a clear view on the financing without offering specifics.[S4]
