Washington: US President Donald Trump has issued a waiver from sanctions, restrictions and duties under the Sanctioning Russia and Iran Act, citing national interest.
“I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” Trump said in an executive order issued on Friday evening.
Trump said he had submitted to Congress a certification that issuing such a waiver at this time is in the national interest of the United States.
The order said the waiver would remain in effect until Trump or his top officials determine that “further action is appropriate.”
“Pursuant to section 115(a) of the Graham Act, I hereby waive the application of any duties provided for in sections 112 and 113 of the Graham Act or this order,” Trump added.
Graham Act tariffs and global oil trade
The Graham Act was passed by the US Congress on September 16 and signed into law by Trump two days later. It was designed to increase pressure on Moscow over its invasion of Ukraine, which began in 2022.
The legislation authorised tariffs of up to 100 per cent within 30 days on goods imported into the US from the five largest purchasers of Russian crude oil or gas. It also covered countries that knowingly purchased Russian oil or gas after the specified period or were among the leading facilitators of sanctions evasion.
Section 115 allows the president to waive sanctions, restrictions and duties if he determines that doing so serves US national interests.
The waiver comes amid concerns that the tariffs could push oil prices higher ahead of the US midterm elections, when Trump’s Republicans are seeking to retain their narrow majorities in both chambers of Congress. American consumers are already facing higher costs amid the US-Israeli war on Iran.
India, China raise concerns over sanctions
India and China, two of the largest buyers of Russian oil, had expressed concerns about the proposed sanctions. Beijing said it “consistently opposed long-arm jurisdiction that lacks a basis in international law”, while India warned Washington that fresh tariffs could affect bilateral ties.
The decision also comes days after Trump struck a deal with Russia involving diesel supplies to the US and global markets, with the arrangement aimed at lowering fuel prices. The deal drew criticism from several US senators, including Republicans, who argued that it could help finance Russia’s war effort.
The waiver also precedes US Secretary of State Marco Rubio’s expected visit to India. External Affairs Minister S Jaishankar had raised concerns about the Graham Act during a meeting with Rubio on the sidelines of the United Nations General Assembly in New York last month.
Jaishankar is understood to have explained that Indian refineries are largely configured to process medium sour crude supplied by Middle Eastern countries and Russia. Venezuelan crude is heavier, while US crude is lighter and would require blending before use in Indian refineries.
With oil supplies from Middle Eastern countries disrupted by the Iran war, India has had to rely on Russian crude to sustain its economy.
US Representative Don Beyer, a Virginia Democrat, criticised Trump’s decision, accusing him of yielding to Russian President Vladimir Putin.
“Trump’s latest surrender to Putin again betrays our Ukrainian partners and defies clear congressional intent of legislation designed to punish Russia for its illegal war of aggression,” Beyer said in a statement.
