Oil Revenue Protected as Trump Waives Russia Sanctions

President Donald Trump waived sanctions and tariffs on Russian oil and other goods before they took effect, preserving a route for Russian energy sales and the revenue they generate. The measures formed part of a law meant to increase pressure on Russia over its invasion of Ukraine. Trump said the waiver served U.S. national interests.

Who Profits

Trump’s order suspended duties on Russian goods and penalties for buying Russian oil and gas. The Graham Act would have imposed tariffs of up to 100% on goods from the five largest buyers of Russian crude oil or gas, and on countries knowingly buying Russian energy after the law’s enactment or helping Russia evade sanctions.

Trump signed the law in mid-September. It allowed him to waive sanctions by notifying Congress that he had determined they weren’t in the national interest. His order said the waiver would remain in effect until he or his top officials decided that “further action is appropriate.”

“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,” Trump wrote. The order continued: “I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act.”

Trump had struck a deal with Russian President Vladimir Putin to allow Russian diesel sales to the United States and world markets amid global fuel shortages. The administration said the deal aimed to lower U.S. fuel prices ahead of the midterm elections. Five Republican lawmakers and Democrats warned that reopening Russian energy transactions would “restore revenue to the Kremlin’s war chest.”

Who Pays

The waiver came as fuel prices had risen. The reporting said the war between the United States and Israel and Iran had contributed to higher fuel costs, while analysts said sanctions could have pushed oil prices higher. Experts blamed Trump’s war against Iran primarily for soaring fuel prices, which had become a liability for Republicans seeking to retain control of Congress.

China and India, among the largest buyers of Russian oil, had raised concerns about the legislation. Beijing said it “consistently opposed long-arm jurisdiction that lacks a basis in international law.” India warned Washington that new tariffs could affect bilateral ties.

Ukraine’s President Volodymyr Zelenskyy criticized the waiver on October 17, saying easing pressure would escalate the war. “The decision to cancel all of this, to block all of this, well, it seems to me that this is simply wrong and only helps the Russians. It only serves their joy and desire to constantly kill people,” he said. “This certainly does not stop the war.” Zelenskyy defended strikes on Russian oil refineries as a way to pressure Russia’s economy, which has financed Putin’s nearly five-year war against Ukraine.

Congressional Pressure, Presidential Power

The House passed the Graham Act with a majority of Republicans and 58 Democrats. A bipartisan group of 12 senators, including six Republicans, wrote to Trump on October 13, calling the diesel deal “a betrayal” of U.S. allies. They urged him to enforce the law and apply economic pressure on Russia and its chief enablers, particularly China.

Five Republican lawmakers joined Democrats in a Thursday letter urging the administration to revoke the license and avoid issuing further general licenses that would reopen Russian energy transactions. U.S. Representative Don Beyer said Trump was giving in to Putin. Sen. Thom Tillis called the decision “beyond irresponsible,” while Rep. Jake Auchincloss said the diesel deal and waiver undercut Ukraine’s self-defense.

The sanctions were due to take effect in the coming days. The law’s waiver clause left the decision to the president, who certified to Congress that suspending the measures served the national interest. Russia’s invasion of Ukraine began in 2022; four years had elapsed by October 17, 2026.