The United States has stepped back from a sanctions law that put India and other big buyers of Russian crude at risk of 100% tariffs.
US President Donald Trump signed an order on Friday using the waiver power written into the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026.
He certified to Congress that suspending the measures served American national interest. The order stays in force until Trump or the secretary of state decides otherwise.
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Why The Law Mattered
Trump signed the act into law in September. It allows tariffs of up to 100% on the five largest importers of Russian crude or gas, and on countries that help Russia evade sanctions.
China, India, Azerbaijan, Hungary and Slovakia are currently the top five importers of Russian oil and gas. The tariff provision is discretionary. The act is named after the late Republican Senator Lindsey Graham, who died on July 11.
India's Exposure
India expanded its purchases of discounted Russian crude after the Ukraine war began in 2022, to secure its energy needs during global market turmoil.
Russian imports rose again after the Strait of Hormuz closed, cutting off the route for 40-50% of India's oil.
External Affairs Minister S Jaishankar raised India's concerns over the act with US Secretary of State Marco Rubio in New York on September 23.
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Fuel Prices And The Midterms
The waiver comes as the administration tries to bring down diesel prices before the November 3 midterm elections.
Trump has said Russia agreed to supply more than 300,000 tonnes of diesel immediately, with more expected in November.
He has also linked cheaper fuel to US control of the Strait of Hormuz, and has called lower costs for farmers and truckers his "Greatest Priority".
Political Pushback
The waiver echoes an earlier move. The Treasury Department issued a 30-day sanctions waiver allowing Indian refiners to buy Russian oil, and Democrats called it "dangerous, self-defeating, and indefensible".
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Critics argue that easing pressure on Moscow rewards Russia while it is accused of helping Iran. The administration has not publicly responded to that charge in the order.
What Next
The waiver is not permanent. Trump can reverse it at any time, and the act's tariff powers remain in place. India's trade negotiators will be watching how Washington uses them as the two sides work towards an interim trade deal.
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