Trump waives the Russia sanctions Congress passed, lifting the tariff threat from buyers of Russian oil

President Donald Trump signed an executive order on Friday waiving a new package of sanctions and tariffs on Russia shortly before it was due to take effect^6,12. The White House published the order as an implementation of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, the law Trump signed last month^10,11. He cited the “national interests” of the United States as his reason for holding off^1,4. Al Jazeera put the timing at two days before the sanctions deadline and a week after his deal to let Russia sell diesel internationally^7,10.

The measures were meant to limit Russia’s revenue streams as its war against Ukraine continues⁴. The Act also allowed secondary sanctions on goods from countries that bought Russian oil and gas, and the Economist reported that rather than follow through, Trump has held back³. Accounts of the headline tariff differ. The Kyiv Post reported that the order blocks new 500% tariffs on Russian goods along with penalties on major oil buyers⁸, while Zee News described the suspension of prospective 100% tariffs on Russian oil imports and of secondary sanctions on foreign buyers of Russian energy⁹. Trump said he would not impose many of the measures due to take effect, thwarting Congress’s effort to aid Ukraine⁵.

Why it matters to investors

The immediate effect is that refiners buying Russian crude face no new American penalty for carrying on. Zee News framed the suspension as major relief for India⁹. The Washington Post described the waived package as one aimed at Russian exports and Russian leaders, which is the supply side of the oil market¹.

The binding constraint on supply is not sanctions. The New York Times reported that the biggest factor limiting supplies remains the war in Iran, citing the view that “the main issue is still the Strait of Hormuz, that there is not enough diesel”². Axios noted that Trump is easing American pressure on Russia while a bipartisan chorus calls for the opposite, which leaves the sanctions machinery intact on paper and unused in practice¹⁰.

What to watch

The order is a determination under the Graham Act rather than a repeal, and the White House text cites the statute at 22 U.S.C. 10802 and section 301 of title 3 as its authority¹¹. Those powers remain available to switch on later. Watch whether the law’s congressional sponsors try to force the issue after the president declined to use authorities he signed into law last month^5,10. Watch whether buyers in Asia treat the reprieve as durable enough to re-contract Russian barrels⁹. And watch the diesel arrangement that preceded the waiver, since it is the part of the deal with a counterparty rather than a deadline^7,8.