Trump waives sanctions, tariffs on purchase of Russian oil and gas

• Donald Trump invokes national interest to waive key sanctions and tariff provisions under the Graham Act.

• The law allows tariffs of up to 100 per cent on goods from major buyers of Russian oil and gas.

• The decision comes ahead of US Secretary of State Marco Rubio’s India visit, with New Delhi concerned about the impact on its energy security.

US President Donald Trump has waived key sanctions and tariff provisions under the Lindsey O. Graham Sanctioning Russia and Iran Act, citing national interest, temporarily easing the threat of steep duties on countries buying Russian oil and gas.

In an executive order issued on the night of Friday, 16 October, Trump said it was in the US national interest to withhold the application of certain sanctions, restrictions and duties under the law. “I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” Trump said.

He said he had submitted a certification to Congress stating that granting the waiver at this time was in the national interest of the United States.

The Lindsey O. Graham Sanctioning Russia and Iran Act, signed into law by Trump on 18 September, authorises sweeping sanctions against Russia and tariffs of up to 100 per cent on goods from major buyers of Russian-origin crude oil and natural gas, including India and China.

Section 115 of the Act allows the President to waive sanctions, restrictions and duties if he certifies to Congress that doing so is in the national interest. Trump invoked this provision to suspend the application of specified sanctions and tariff measures under the law. The waivers will remain in force until the President or the relevant administration officials determine that further action is warranted.

The decision comes days after Trump struck a deal allowing Russian diesel supplies to reach the US and global markets, with the administration seeking to ease pressure on energy prices. The move has drawn criticism from lawmakers who argue that it could undermine efforts to pressure Moscow over its war in Ukraine.

The waiver also comes ahead of US secretary of state Marco Rubio’s scheduled visit to India next week. Rubio is expected to meet external affairs minister S. Jaishankar in Mumbai.

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 oil refineries are largely configured to process medium-sour crude supplied by countries in West Asia and Russia. Venezuelan crude is heavier, while US crude is generally lighter, requiring blending to meet the requirements of Indian refineries.

With oil supplies from West Asian countries disrupted by the war involving Iran, India has had to rely on Russian crude to help meet its energy requirements.

Trump’s decision to waive key provisions of the Act could ease immediate concerns over additional US tariffs on India’s purchases of Russian energy. However, the administration retains the authority to revisit the measures, leaving uncertainty over the longer-term implications for India’s energy trade and ties with Washington.

With PTI inputs