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Trump shelves Russia sanctions for a diesel deal that's about half a day of world supply

Republicans including Tillis and Cruz broke ranks as truckers and farmers pay $2.51 more a gallon than last year.

Trump shelves Russia sanctions for a diesel deal that's about half a day of world supply
Stock photo. Photo by Artem Beliaikin on Unsplash

President Donald Trump signed an executive order late Friday, Oct. 16, waiving the new sanctions and tariffs in the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, two days before they were due to take effect on Oct. 18. "I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act," the order reads. It sets no end date.

The waiver came a week after the Treasury Department cleared Americans to buy Russian diesel. On Monday, Trump defended both moves on the South Lawn: "Russia, frankly, has been fine on Ukraine, they haven't been doing much," he said, CBS News reported.

What Congress passed, and what Trump shelved

Trump himself signed the law, Public Law 119-111 (H.R. 5334), on Sept. 18. It passed the Senate 86-11 and the House 262-159, according to TIME. It is named for the late Sen. Lindsey Graham (R-S.C.), who died in July.

The law ordered tariffs (taxes on imports) of up to 500% on Russian goods and up to 100% on goods from the biggest buyers of Russian oil and gas, such as China and India. It also required sanctions on Russian officials, banks and the "shadow fleet" of tankers that dodge existing bans.

Section 115 gave the president an escape hatch: he can waive any of it by certifying in writing that the waiver is "in the national interests of the United States," along with "a report explaining the basis for the certification." The order says Trump sent both, but the report hasn't been published and the order gives no reason. A White House spokesperson told TIME that enforcing the law "would impede ongoing U.S. efforts to negotiate a durable and comprehensive peace agreement." That is the administration's claim. Trump said on Oct. 11 that Russia and Ukraine had agreed to an "energy ceasefire." Ukrainian officials reported Russian strikes on their grid hours later, TIME reported.

The diesel math

On Oct. 9, Treasury's sanctions office issued General License 135, allowing the sale and import of Russian diesel into the U.S. through April 7, 2027. Trump wrote on Truth Social that diesel prices "will be COMING DOWN, IN RECORD NUMBERS, AND FAST!" and a White House official said the plan would cut costs for farmers and truckers, CBS News reported.

Russia pledged 300,000 tons right away, 500,000 tons in November and 1 million tons after that. The world burns about 3.5 to 4 million metric tons of diesel a day, Adam Crisafulli of Vital Knowledge told CBS, so the whole pledge adds up to roughly half a day of global use. Daniel Sternoff of Columbia's Center on Global Energy Policy said the deal "might take the edge off of prices, but it will not substantially lower them." EU economy chief Valdis Dombrovskis said the volumes "are not of any macroeconomic significance," Al Jazeera reported.

Meanwhile, the national average for diesel was $6.18 a gallon in the week of Oct. 12, up $2.51 from a year earlier, according to the Energy Information Administration. As we reported, diesel helped drive September inflation to 3.7% while paychecks fell behind. Diesel moves food and lumber on trucks and trains, so farmers and truckers pay at the pump and shoppers pay at the register.

Republicans break ranks

"What part of enforcing a law passed 86-11 by the Senate does the President and his advisers not understand?" wrote Sen. Thom Tillis (R-N.C.), who called the waiver "beyond irresponsible," Al Jazeera reported. Sen. John Cornyn (R-Texas) said Graham "would be appalled." Sen. Ted Cruz (R-Texas) said, "I think it was a mistake," Newsweek reported.

Tillis also joined a bipartisan group of senators who said the diesel deal "runs directly counter" to the 2022 Ending Importation of Russian Oil Act, which bans Russian oil imports unless the president certifies Russia has withdrawn from Ukraine, Roll Call reported.

Ukrainian President Volodymyr Zelenskyy said the waiver "seems wrong to me" and "definitely helps only the Russians," ABC News reported. Putin envoy Kirill Dmitriev called it "an important and truly historic moment," Al Jazeera reported.

Energy Secretary Chris Wright told CNN, "This is a carrot to try to end a war. It's not an economic lifeline for Russia," and Secretary of State Marco Rubio said, "That diesel was going to be sold one way or the other," Axios reported. If Russia was selling that diesel anyway, it adds little new supply.

What comes next

Congress is out until after the Nov. 3 midterms, so no vote to reverse the waiver will come before Election Day. Rep. Gregory Meeks (D-N.Y.), the top Democrat on the House Foreign Affairs Committee, has filed a bill to block the diesel deal. Rubio has said Trump wants 60 days to study the economic effects, Newsweek reported, but the order has no deadline.

We condemn a waiver that hands Vladimir Putin relief that Congress voted overwhelmingly to deny him, traded for diesel that energy experts say won't meaningfully lower the price working people pay. Ask the candidates on your ballot where they stand on the Graham Act before you vote.

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