Trump Waives Graham Act Sanctions on Russia, Days Before They Were to Take Effect

President Trump signed an executive order late Friday exempting Russia from sweeping new sanctions that Congress had passed just weeks earlier, delivering a significant win to Vladimir Putin and deepening a rift with U.S. allies over Ukraine. The waiver applies to the so-called Graham Act — named after the late Sen. Lindsey Graham of South Carolina, who died in July after spending over a year championing the legislation. Graham was a self-described Russia hawk and close Trump ally, making the move especially striking.

The Graham Act was designed to apply serious financial pressure on Russia's war machine. It gave Trump authority to impose up to 100% tariffs on countries buying Russian oil and gas, up to 500% tariffs on Russian goods entering the U.S., and expanded tools to target Russia's shadow fleet of oil tankers and its banking system. The law had strong bipartisan backing in Congress, though many lawmakers privately worried Trump would simply ignore it. He did — two days before it was set to take effect on October 18.

Trump's stated rationale centers on energy economics and electoral politics. Ukraine's drone strikes on Russian oil refineries have been pushing up global oil prices, which in turn are raising gasoline costs inside the United States — a damaging dynamic with midterm elections approaching that could flip control of Congress away from Republicans. Trump announced last week he had struck a deal with Putin to begin importing Russian diesel fuel, and the Treasury Department issued a general license permitting Russian energy producers to sell diesel to global markets through April.

The moves have triggered a bipartisan backlash in Congress. Rep. Don Beyer (D-VA) called it a betrayal of Ukraine, while Sen. Elizabeth Warren (D-MA), the top Democrat on the Banking Committee, called Trump's decision an 'abject failure' of leadership. A separate bipartisan group of senators had already urged Trump earlier this week to reverse his earlier diesel sanctions waiver. European officials have also pushed back sharply.

Financial experts are skeptical the waiver will produce meaningful economic benefits. One senior consultant at Oliver Wyman noted that the broader sanctions architecture against Russia remains in place and that banks are unlikely to rush into Russian dealings knowing the waiver could be pulled at any moment — leaving the practical upside for American consumers unclear at best.