Washington: US President Donald Trump has waived the application of sanctions, restrictions, and duties under the Lindsey O. Graham Sanctioning Russia and Iran Act, citing the national interest of the United States. The move suspends measures that could have exposed countries such as India and China to steep tariffs over their purchases of Russian oil and gas.
In an executive order issued on Friday, Trump said he had submitted a certification to Congress stating that granting the waiver at this time was in the US national interest.
“I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” Trump said.
The legislation, signed into law by Trump on September 18, authorised the US President to impose sweeping sanctions on Russia and tariffs of up to 100 per cent on goods imported from major buyers of Russian crude oil and natural gas.
The law also includes a provision allowing the President to waive sanctions, restrictions and duties if he certifies to Congress that doing so is in the national interest of the United States.
“Pursuant to section 115(a) of the Graham Act, I hereby waive the application of any duties provided for in sections 112 and 113 of the Graham Act or this order,” Trump said.
Section 113 provides for tariffs of up to 100 per cent on countries that purchase Russian-origin crude oil or natural gas, or facilitate the evasion of sanctions against Russia.
The waiver comes days after the Trump administration reached an arrangement involving Russian diesel supplies for the US and global markets, amid concerns over energy prices. The latest decision also comes ahead of US Secretary of State Marco Rubio’s scheduled visit to India.
External Affairs Minister S Jaishankar had raised concerns about the Graham Act during a meeting with Rubio on the sidelines of the United Nations General Assembly in New York last month.
Jaishankar is understood to have explained that Indian oil refineries are largely configured to process medium-sour crude supplied by countries in West Asia and Russia.
He also reportedly pointed out that Venezuelan crude is heavier, while US crude is lighter and would require blending before being processed by Indian refineries.
With oil supplies from West Asian countries affected by the war involving Iran, India has continued to rely on Russian crude to meet its energy requirements.
The waiver removes the immediate threat of the specified measures being applied under the executive order, although the broader implications for US-Russia relations and India’s energy trade remain to be seen.