President Trump waives new Russia sanctions and tariffs under the Lindsey O. Graham Sanctioning Russia & Iran Act

On October 16, 2026, US President Trump issued an Executive Order waiving the majority of the Russia-related sanctions and tariffs introduced by the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (the Act).

After nearly a year of negotiations over the legislation, but less than one month after he signed the Act into law, President Trump issued an Executive Order invoking section 115 of the Act. As noted in our previous article, section 115 allows the President to waive the application of any sanction provision or any duty under the Act. Exercising this authority, President Trump has indefinitely waived the majority of the Russian sanctions and duties introduced by the Act.

What has been waived?

The Executive Order waives the duties provided for in sections 112 and 113 of the Act, relating to imports from Russia and countries that purchase Russian-origin crude oil or natural gas or facilitate Russian oil sanctions evasion. It also waives the sanctions and restrictions under sections 102(a), 102(d), 102(e), 103 to 111, and 117 of the Act. These provisions imposed, for example:

• Sanctions on certain persons affiliated with or supporting the Government of the Russian Federation (sections 102(a) and 102(e), which covers a host of persons and entities described in sections 102(b) through (c));
• Sanctions on financial institutions affiliated with the Government of the Russian Federation or other Russian Government owned or controlled entities (sections 103 and 104);
• Prohibitions on certain transfers of funds involving the Government of Russia, listing or trading of Russian entities on US securities exchanges and investment by US persons in Russia (sections 105 to 107); and
• Prohibition on energy exports to, and investment in, the energy sector of Russia (section 108), among other prohibitions.

In accordance with section 115 of the Act, the Executive Order states that the President has submitted to the Congress a certification that the issuance of the waivers is in the national interests of the US, along with a report explaining the basis for the certification.

In summary, the Executive Order effectively returns US Russia-related sanctions to the status quo before the passage of the Act (it does not, however, affect the Iran-related sections of the Act). This Executive Order also follows General License 135 (GL 135), issued by OFAC on October 9, 2026, which authorizes certain transactions related to imports of Russian diesel fuel to the US until April 7, 2027. See our previous article here for further details and analysis of GL 135.

What remains in place?

Section 4(b) of the Executive Order makes clear that “nothing in this order affects any sanctions or other measures” provided for under existing Executive Orders (such as Executive Order 14024). 

The waivers also do not resolve potential issues arising under other US legislation. For example, as discussed in our recent publication on GL 135, the Ending Importation of Russian Oil Act (22 USC § 8923 note) prohibits the importation of Russian-origin oil products, including diesel, and includes its own requirements for lifting this prohibition. 

Therefore, while the above-mentioned measures have been waived, the underlying statutory framework remains in place. 

Conclusion

We previously noted that the flexibility afforded to the President under the Act created some uncertainty as to how aggressively the Act would be implemented in practice. The issuance of GL 135 soon after the passage of the Act further enhanced the possibility that the President may exercise his discretion to waive sanctions and/or tariffs under the Act. These waivers, however, are not permanent. Rapidly changing geopolitical conditions may also give rise to equally rapid changes in the Executive’s approach to sanctions against Russia. Businesses may wish to continue to monitor for any updates, and to consider these waivers in conjunction with existing US sanctions against Russia, Executive Orders, and other pertinent pieces of US legislation.

We will continue to monitor developments and publish additional insights as this area evolves.