Trump signs order exempting Russia from sanctions law

• President Donald Trump waived key Russia-related US sanctions and tariffs days before they were to take effect.

• In an executive order released by the White House on October 17, Trump said the waiver was in the national interests of the US.

• The order said the waiver will remain in effect until Trump or his top officials determine that “further action is appropriate”.

Trump waives Graham Act sanctions

• Trump signed ‘Lindsey O. Graham Sanctioning Russia and Iran Act of 2026’ on September 18.

• The Bill was named to honour the South Carolina Republican who died in July.

• It had allowed Trump the authority to impose duties up to 100 percent on major buyers of Russian oil and gas.

• The legislation targeted Russia’s energy and defence sectors, President Vladimir Putin and other senior officials, as well as Moscow’s so-called shadow fleet of tankers used to circumvent Western sanctions.

• It could have risked further raising oil prices as Americans face increased costs largely attributed to the US-Israeli war on Iran.

• The law was meant to increase pressure on Russia for its invasion of Ukraine that began in 2022. 

• India and China, which are among the biggest buyers of Russian oil, have raised concerns about the Russia sanctions Bill.

• India has warned Washington that new tariffs could impact bilateral ties.

Why Trump signed this order?

• The Iran war has sparked crippling oil shortages and price spikes, creating major headwinds for the Republican Party ahead of midterm elections in October.

• Trump’s reversal on the Russia sanctions comes after he struck a deal with Putin to ease sanctions on Russia in exchange for Moscow releasing large amounts of diesel into global markets.

• Trump’s latest move came as Ukrainian President Volodymyr Zelensky urged EU leaders to keep financing Kyiv’s fight with nearly $80 billion more next year, as Trump’s support slumped.

Sanctions waiver offers India relief

• Trump’s new order gives India temporary relief from threatened additional duties of up to 100 per cent linked to Russian oil purchases.

• Russia has been a leading source for India’s energy security requirements. India’s procurement of Russian crude oil has gone up significantly in the last few years.

• Minister of External Affairs S. Jaishankar had raised concerns about the Graham Act during a meeting with US Secretary of State Marco Rubio on the sidelines of the UN General Assembly in New York in September. 

• Its potential implications for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side.