Trump scraps Russia sanctions two days before they take effect, in exchange for diesel

US President Donald Trump on Friday used an executive order to lift extensive US sanctions and tariffs against Russia, its energy sector and senior political figures. The White House published the order. The measures, which were due to take effect on Sunday, 18 October, were passed by Congress, and Trump signed the law in mid-September.

The law is named after the late senator Lindsey Graham. Among other things, it gave Trump the authority to impose tariffs of up to 100 percent on the five biggest buyers of Russian oil and natural gas, including China and India. It also provided for sanctions against Russian President Vladimir Putin, members of his government, Russian oligarchs, banks and other financial institutions, and the so-called shadow fleet, which Russia uses to get around Western sanctions when selling oil.

Trump cited the national interest in his decision.

“I have submitted to Congress a certification that invoking such an exception is in the national interest of the United States at this time.” (translated)

The law allows the president to waive sanctions if he notifies Congress that, in his judgment, they are not in the national interest. Under the order, the exception applies until Trump or his top officials decide that further measures are appropriate.

Diesel for sanctions

The reversal followed a deal Trump recently struck with Putin. It will allow Russia to export diesel fuel in exchange for eased US sanctions. Trump is thus trying to ease the pressure on fuel prices, which have risen sharply since February because of the US-Israeli war with Iran. Sources do not say how this will affect prices in Slovenia.

Relations between Ukraine and the US worsened again after the deal, and criticism was also heard in Europe. China and India had earlier voiced concerns about the law. Beijing said it “consistently opposes the extraterritorial application of legislation that has no basis in international law”, while Delhi warned Washington that the new tariffs could affect bilateral relations.

Criticism in Washington, joy in Moscow

Democratic congressman Don Beyer sharply criticised the decision and said Trump is bowing to Putin.

“Trump’s latest capitulation to Putin is yet another betrayal of our Ukrainian partners and runs against the clear intent of Congress, which passed legislation to punish Russia for its illegal war of aggression.” (translated)

Moscow is pleased. Kirill Dmitriev, the Kremlin’s special envoy for economic cooperation, welcomed the decision immediately and called it a “truly historic moment”. On social media he wrote that the sanctions law could have halted all economic cooperation between Russia and the US.