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Trump Suspends Graham Act Sanctions Against Russia

On October 16th, local time, U.S. President Donald Trump signed an executive order exempting several sanctions, restrictions, and tariffs imposed under the Graham Act against Russia. Trump stated that suspending these sanctions is in the national interests of the United States.

According to the Associated Press report on the 18th, the U.S. Congress had previously passed the “Graham Act” with overwhelming support. Trump's latest decision immediately caused concern among members of both the Republican and Democratic parties. They criticized the executive order for potentially benefiting the Russian economy. However, since the U.S. Congress will not resume its sessions until the mid-term elections in early November, it is still uncertain what actions the members of both parties will take.

Florida Republican U.S. Senator Rick Scott said that the United States must “do everything possible to exert economic pressure on Russia,” and should not suspend sanctions against Russia. North Carolina Republican U.S. Senator Tom Tillis criticized Trump’s actions as “irresponsible,” accusing the Trump administration of “surrendering to Russia,” and saying this is “unbearable.”

Senate Democratic Leader Chuck Schumer stated in a statement that Trump had struck a "dirty deal" by providing financial support to the Russian economy. Massachusetts Democratic Senator Elizabeth Warren believed that Trump's decision was a "public disregard of Congress" and would have the effect of "encouraging Russian military actions."

Some lawmakers who oppose the “Graham Act” also publicly criticized Trump’s decision. Gregory Meeks, a Democratic congressman from New York State, proposed a bill on the 16th to prevent U.S. and Russian diesel supply agreements. Meeks claimed that this deal “goes against American values,” and that the United States should now “increase pressure on Russia.”

Trump Suspends Graham Act Sanctions Against Russia

United States President Donald Trump Visual China

The late U.S. Senator Lindsey Graham advocated for imposing sanctions on Russian oil and energy products through high tariffs and other measures, in order to "cut off" Russia's funding for military actions in Ukraine. According to the Associated Press, it took Graham nearly a year to persuade Trump before his bill was passed by Congress last month, and signed into law by Trump.

However, one month later, Trump changed his mind and decided to suspend the sanctions imposed by the Graham Act against Russia. Previously, Trump announced that he had reached an agreement with Russia for diesel supply, importing diesel from Russia.

The high oil prices in the United States have led to a rapid decline in public support for the Trump administration, putting the Republican Party at a disadvantage in the upcoming mid-term elections. Many American voters say that oil prices are their top concern right now. Trump hopes to use Russia's energy supply to contain oil prices and thereby boost the Republican party's voting prospects.

However, since the US Congress is currently in recess, even if there are many grievances among the members of both parties, they cannot take action at this time. According to The Associated Press, only after the mid-term elections in early November will the House and Senate of the US Congress resume operations. It is unlikely that Congress will take any steps to challenge Trump’s decisions before lawmakers return to Washington.

Additionally, Ukrainian President Zelenskyy was also dissatisfied with Trump's decision. Zelenskyy said, "To decide to overturn everything and block everything now seems wrong." He believed that such actions "will only benefit the Russians" and will encourage the Russian side to continue launching attacks. "Of course, this cannot stop the conflict."

Criticism from the American political community has not shaken the decisions of the Trump administration. U.S. Secretary of State Pompeo stated on the 16th that, given the tariffs that the United States has already imposed on Russia and other countries, Trump will take 60 days to assess the impact of the proposed sanctions on the global and U.S. economies.

Rubio pointed out that the United States is currently facing issues with the Iran war and soaring energy prices. "We need time to study all these factors and find the appropriate combination of solutions."

The Russian side welcomed the United States' suspension of sanctions, calling it a "historic moment." Kirill Dmitriev, the Special Representative for Presidential Investments and Foreign Economic Cooperation, stated on the 17th that the Graham Act could completely end economic cooperation between Russia and the United States, causing serious damage to the American economy and global markets.

He wrote on social media: "The Trump administration's suspension of the Graham Act is an important and truly historic moment. We no longer face sanctions and confrontation, but rather a time for dialogue, mutually beneficial cooperation, and a shared responsibility to maintain global stability."

Demidiev said, “The economic cooperation between Russia and the United States benefits both countries, contributes to the stability of the global economy, and lays the foundation for building trust and achieving lasting peace.”