US President Donald Trump waived key sanctions and tariffs targeting Russia’s oil trade on October 16, suspending measures that could have imposed duties of up to 100% on imports from major buyers of Russian crude oil and natural gas under a new US law, Reuters reported on October 17.

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, signed in September, authorized tariffs on goods from the five largest importers of Russian crude oil or natural gas, as well as countries continuing to purchase Russian energy or helping Moscow evade sanctions. Trump justified the exemptions on national-interest grounds, leaving their implementation subject to a future decision by his administration.

The decision comes as Washington seeks to contain domestic fuel costs amid the US-Israeli war on Iran, which has disrupted energy markets and raised concerns about supply security. Analysts have warned that imposing additional tariffs on major buyers of Russian oil could further increase energy prices.

China and India, two of Russia’s largest oil customers, had expressed concerns about the legislation. Beijing opposed the extraterritorial application of US jurisdiction, while New Delhi warned that the tariffs could strain bilateral relations.

The waiver also follows a separate agreement under which Washington eased sanctions on Russian diesel exports in exchange for Moscow supplying diesel to global markets. The arrangement has drawn criticism from US lawmakers who argue that Russian energy revenues could help finance the war in Ukraine.

Kirill Dmitriev, Russian President Vladimir Putin’s investment envoy, welcomed the waiver, describing it as a historic development that could preserve economic cooperation between Moscow and Washington.

The decision leaves uncertainty over the future enforcement of US restrictions on Russian energy trade, with potential implications for crude oil flows, refined-product supply, and the costs faced by countries reliant on imported hydrocarbons.

On October 9, Trump announced on October 9 that Russia had agreed to supply over than 300,000 metric tons of diesel to US and ​global markets (equal to about 2.25 million barrels of fuel), and his administration temporarily lifted US sanctions on Russian fuel designed to deprive Moscow of revenue for its war on Ukraine. The US exports about 1.5 million barrels of diesel per day (bbl/d).