In short
- The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 would have imposed sanctions on Russian officials, banks, and a shadow fleet of tankers.
- Trump also announced a deal for Russia to supply more than 300,000 metric tons of diesel, with additional deliveries planned.
What happened
President Trump signed but then waived the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, delaying new sanctions and tariffs on Russian energy that were set to take effect on 18 October. The executive order suspends restrictions on Russian officials, banks, and energy shipments, despite bipartisan Congressional support for the measure.
The pause comes as Trump announced a deal for Russia to supply over 300,000 metric tons of diesel, with further deliveries of 500,000 tons in November and 1m tons thereafter. The move has drawn criticism from US lawmakers and Ukrainian President Zelenskyy, who warned it would send cash back to Russia.
The Trump administration’s suspension of the Graham Act is an important and truly historic moment.
In numbers
- 300,000 metric tons initial Russian diesel supply
- 500,000 tons additional Russian diesel in November
- 1m tons further Russian diesel supply
What compliance teams should check
- Review the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 for updated implementation timelines and waiver provisions.
- Monitor transactions involving Russian officials, banks, and the shadow fleet of tankers for potential future sanctions exposure.
- Assess exposure to Russian diesel imports in light of the announced supply deal and potential compliance risks.
Why it matters
This development directly impacts AML/CFT compliance by delaying the enforcement of new US sanctions targeting Russian financial flows, officials, and energy exports. Compliance officers must remain vigilant as the waiver creates uncertainty around the timing and scope of restrictions, increasing the risk of inadvertent dealings with sanctioned entities. The announced Russian diesel deal may also introduce new exposure to Russian counterparties, requiring enhanced due diligence and ongoing monitoring to ensure compliance with evolving US policy and legislative requirements.
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