US President Donald Trump has signed an executive order waiving key sanctions and tariffs aimed at Russian energy trade, in a move framed as an effort to bring down high diesel prices. The order was signed on Friday, 16 October 2026, and has helped push oil prices lower, but it has drawn strong criticism in Washington and Kyiv.
What the order waives
The measures were introduced under the Graham Act, a Russia sanctions law that passed the Senate by 86 votes to 11 and was signed last month. The waiver covers:
- Tariffs of up to 500% on Russian goods
- Tariffs of up to 100% on the top five buyers of Russian crude oil and gas
- Sanctions on foreign banks that deal with Russian state banks
It is the second such waiver in two weeks. Separately, the US Treasury's sanctions office recently issued a licence, running until April, allowing imports of Russian diesel.
Why the administration did it
Energy prices have surged, with Brent crude briefly touching $110 a barrel on Friday, its highest since May. Diesel costs feed directly into freight, farming and consumer prices, and the administration argues that easing restrictions on Russian supply will help bring them down.
Market reaction
Oil prices eased on Monday, with Brent falling about 1.7% to around $108 and US crude dipping to around $100.6 a barrel, helped partly by the waiver and expectations of more supply.
Criticism
- Senate Democratic leader Chuck Schumer said Trump had given Russian President Vladimir Putin "the best birthday gift he'll get this year".
- Republican Senator Thom Tillis called the move "beyond irresponsible".
- Ukrainian President Volodymyr Zelenskyy said it "definitely helps only the Russians".
Not final yet?
Adding to the uncertainty, Reuters reported on 19 October that Trump later said no final decision had been made, and Secretary of State Marco Rubio said the president could take up to 60 days to assess the economic impact. Businesses and traders are therefore watching closely for clarity on whether the waivers will stay in place.
Why it matters
The decision sits at the intersection of energy prices, inflation and geopolitics. Cheaper fuel would help consumers and businesses, but critics argue that easing pressure on Russia weakens efforts to end the war in Ukraine. Any reversal could quickly push oil prices back up.
This article is based on reports available as of 19 October 2026. Market figures move quickly and may have changed since publication.
