Washington, Oct 17: US President Donald Trump has waived the application of sanctions, restrictions and duties under the Sanctioning Russia and Iran Act, averting the immediate threat of tariffs of up to 100 per cent on India and China over their purchases of Russian oil and gas.
In an executive order issued on Friday night, Trump cited US national interests as the reason for withholding the measures authorised under the legislation, commonly known as the Graham Act.
“I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” Trump said.
The decision comes as disruptions to oil supplies from the Middle East amid the Iran war have increased India’s reliance on Russian crude. It also precedes the scheduled visit of US Secretary of State Marco Rubio to India.
External Affairs Minister S Jaishankar had raised concerns over the legislation 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 refineries are largely configured to process medium-sour crude supplied by Middle Eastern countries and Russia. Venezuelan crude is heavier, while US crude is lighter and would require blending before it could be used efficiently by Indian refineries.
The concerns come against the backdrop of India’s efforts to maintain stable energy supplies as the conflict involving Iran disrupts oil flows from the Middle East.
Under the Graham Act, Trump was empowered to impose tariffs of up to 100 per cent on goods imported into the US from the five largest purchasers of Russian-origin crude oil or natural gas. The legislation also provided for sanctions against Moscow and measures targeting countries purchasing Russian energy or facilitating sanctions evasion.
The US Congress passed the legislation on September 16, and Trump signed it into law two days later.
However, Section 115 of the Act allows the President to waive the application of sanctions, restrictions and duties if doing so is considered to be 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 purchasing Russian-origin crude oil or natural gas, or facilitating the evasion of sanctions.
Trump said he had submitted a certification to Congress stating that withholding the measures at this time was in the national interest of the United States.
The waiver also follows a reported agreement between Trump and Russia on diesel supplies to the US and international markets, underscoring the shifting energy considerations surrounding Washington’s approach to Russian oil.
For India, the move comes at a critical time, with disruptions to Middle Eastern supplies increasing the importance of Russian crude in meeting domestic energy requirements. The waiver removes the immediate threat of the duties covered by Trump’s order, although the broader framework of the Graham Act remains in place.
