Trump Puts New Russia Sanctions on Hold; Relief to India, Other Oil Importers

Washington DC: President Donald Trump on Friday signed an executive order suspending a sweeping new sanctions package against the Russian economy, telling Congress the pause was in the national interest.

The package, named after the late Senator Lindsey Graham, was passed with large bipartisan majorities and signed by Trump himself last month. It targets Russian officials, banks and the shadow fleet of tankers that moves Russian energy, and authorises tariffs of up to 100 per cent on the five biggest buyers of Russian oil or natural gas, with an exception for some countries cutting their Russian gas purchases. Trump’s order came two days before a deadline written into the law for its implementation. The law also requires an unclassified report to Congress explaining the basis for any waiver.

The move comes a week after Trump announced a deal with Russian President Vladimir Putin to release Russian diesel onto world markets, easing sanctions on diesel imports into the US for six months. Critics from both parties say the arrangement helps Russia fund its war in Ukraine without lowering global fuel prices, which have been driven up mainly by the Iran war. Diesel prices have risen almost 70 per cent since that conflict began in February.

Democratic Senator Richard Blumenthal said Trump was turning his back on most Americans, their representatives in Congress and European allies. Representative Don Beyer, who opposed the bill, said he and others had warned this could happen and urged Congress to fix the law.

The decision lands as Trump’s approval ratings sit near historic lows and Republicans fight to keep control of Congress in the November midterms.

Meanwhile, Indian and China, two major buyers of Russia oil stands to gain from the recent development.