In short
- The law targets Russian oil, gas, banks, and the 'shadow fleet' used to evade sanctions.
- A bipartisan group of 20 lawmakers urged Trump to fully implement the Graham law's sanctions.
What happened
President Trump issued an executive order withholding some sanctions on Russia, citing US 'national interests,' despite having signed the sanctions bill into law in September. The law, named for Senator Lindsey Graham, was scheduled to take effect on 18 October and targets Russia's economy, oil, gas, and financial institutions.
The move follows Trump's announcement to import Russian diesel, sparking bipartisan backlash and criticism from US allies and Ukraine. Lawmakers called for 'full and faithful implementation' of the Graham law, which includes tariffs of up to 100% on top purchasers of Russian oil and gas, and sanctions on Putin, Russian officials, banks, and the 'shadow fleet.'
The lawmakers said it would be "decisive in forcing Putin to take peace talks seriously" and called on the Trump administration "to apply the Graham law's sanctions to their fullest extent and without delay".
In numbers
- 100% maximum tariff on top five purchasers of Russian oil and gas
- 20 number of bipartisan US lawmakers issuing letter
What compliance teams should check
- Review the Graham law's sanctions list for Russian banks, financial institutions, and 'shadow fleet' entities.
- Monitor compliance with tariffs of up to 100% on China, India, and other top five purchasers of Russian oil and gas.
- Assess exposure to Russian diesel imports and related transactions in light of Trump's executive order and the Graham law.
Why it matters
This story highlights a significant shift in US sanctions policy, with President Trump blocking key measures intended to pressure Russia over its war in Ukraine. Compliance officers must closely track which sanctions are withheld and which remain in force, especially those targeting Russian oil, gas, financial institutions, and the 'shadow fleet.' The bipartisan push for full implementation underscores the political sensitivity and potential for rapid regulatory changes, requiring vigilant monitoring of official guidance and enforcement actions.
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