Trump freezes Graham Act sanctions on Russia amid diesel price crunch

President Trump froze the Russia sanctions and tariffs required by the Graham Act, a week after a deal with Putin to supply Russian diesel, as fuel prices have jumped about 70% since the Iran war began.

President Donald Trump froze the sanctions and tariffs required by the Lindsey O. Graham Sanctioning Russia and Iran Act in an executive order signed on the evening of Friday, Oct. 16, certifying to Congress in writing that the decision serves U.S. national interests.

The move came a week after an Oct. 9 agreement between Trump and Putin allowing Russian diesel to be exported to the United States and other markets, after which the Treasury Department issued General License 135 authorizing such transactions until April 2027.

Fuel at the heart of the decision

Putin and Trump walk on the red carpet in Alaska (file photo)

Diesel prices have climbed about 70% since the war with Iran began, and the administration wants to bring them down before the Nov. 3 midterms. Treasury Secretary Scott Bessent has said easing some sanctions is needed to curb the price surge.

The law, which Trump himself signed on Sept. 18, called for 500% duties on Russian energy imports, 100% duties on goods from the five largest buyers of Russian oil, including China, India and Türkiye, and sanctions on Russia’s leadership and state companies.

Russian welcome, U.S. criticism

Russian envoy Kirill Dmitriev welcomed the decision as “a truly historic moment,” while Democratic Sen. Richard Blumenthal called it a “craven, cowardly action,” and Republican Rep. Don Bacon said it prolongs the war in Ukraine.