Trump abruptly puts Russia sanctions on hold... Russia cheers “historic moment” vs. Ukraine: “It only encourages attacks”

[Financial News] U.S. President Donald Trump abruptly suspended the implementation of key provisions of a sanctions law targeting Russia, drawn up in response to its invasion of Ukraine. The move is seen as an effort to rein in domestic oil prices by securing Russian energy supplies ahead of next month’s midterm elections. Russia hailed it as a “historic moment,” while Ukraine strongly protested, underscoring the starkly contrasting reactions in the two countries.

According to the Financial Times (FT) and other foreign media on the 16th (local time), President Trump issued an executive order exempting the sanctions and high tariffs stipulated in the “Lindsey O. Graham Russia and Iran Sanctions Act,” which he signed last month. He said, “At this time, granting an exemption is in the national interest of the United States.” The law, which was halted just two days before it was due to take effect, was spearheaded by the late Senator Lindsey Graham. It included tough measures targeting senior Russian officials and imposing tariffs of up to 100% on exports to the U.S. from major importers of Russian energy, as well as 500% tariffs on some Russian imports.
The Trump administration’s decision is seen as a move to secure energy supplies and stabilize oil prices. President Trump has recently voiced displeasure, saying that Ukraine’s strikes on Russian oil refineries were driving up global oil prices. On the 9th, he agreed with Russian President Vladimir Putin to release 300,000 metric tons of Russian diesel onto the market soon and receive an additional 500,000 tons in November. Local media analysts say that this plan to supply diesel would have been difficult to realize had the tough sanctions bill taken effect as originally drafted.

The Kremlin welcomed the news of the sanctions exemption. Kirill Dmitriev, a special representative of the Russian president for foreign investment and economic cooperation, welcomed the decision in a social media post, saying, “The Trump administration’s decision is truly a historic moment,” and, “A path of dialogue and mutual cooperation has opened up instead of sanctions and confrontation. Economic dialogue with the United States and efforts to build peace will continue.”

Ukraine, which the previous day had suffered Russian attacks on at least 15 power generation and transmission facilities, immediately protested. Ukrainian President Volodymyr Zelenskyy called for pressure on Russia to be maintained, saying, “The U.S. ‘sanctions gap’ and the easing of pressure on the aggressor will only reward Putin financially and encourage him to continue his attacks indefinitely.”
The move appears to be widening the rift between the United States and Ukraine. In an interview the previous day, President Trump openly expressed his displeasure with President Zelenskyy, criticizing him by saying, “I don’t like him very much, and he’s harder to deal with than Putin.” He also hinted at the need for a change of government in Ukraine.


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