U.S. President Donald Trump has issued a waiver from sanctions, restrictions and duties under the Sanctioning Russia and Iran Act, citing national interest.
On Friday in an executive order, Trump said that it is in the US “national interests” to withhold some of the sanctions.
“I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” Mr. Trump said.
Mr. Trump said he had submitted to Congress a certification that issuing such a waiver at this time is in the national interest of the United States.
The Lindsey O Graham Sanctioning Russia and Iran Act empowered Mr. Trump to impose sweeping sanctions on Moscow and slap steep tariffs against the world’s largest purchasers of Russian oil and gas, including China and India.
The Graham Act, as it is now called, was passed by the U.S. Congress on September 16 and signed into law by Mr. Trump two days later.
The law authorised Mr. Trump to impose tariffs of up to 100% within 30 days of its enactment on all goods brought into the U.S. from the five largest importers of Russian crude oil or gas.
The law also has a provision in Section 115 that allows the President to grant waiver from the application of sanctions, restrictions and duties if such a step is in the national interest of the U.S.
“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,” Mr. Trump said.
Section 113 of the Graham Act deals with imposition of tariffs upto 100% on countries that purchase Russian origin crude oil or natural gas or facilitate sanctions evasion.
The waiver from application of the act comes days after President Trump struck a deal with Russia for supply of diesel to the U.S. and global markets.
It also comes days ahead of U.S. Secretary of State Marco Rubio’s visit to India.
External Affairs Minister S. Jaishankar had raised concerns about the Graham Act during a meeting with Rubio on the sidelines of the UN General Assembly in New York last month.
Mr. Jaishankar is understood to have conveyed to Mr. Rubio that oil refineries in India were configured largely for handling medium sour crude, which is supplied by West Asia countries and Russia.
He also told Mr. Rubio that Venezuela supplies heavier grade crude and the US has light grade crude which would require blending before being used by refineries in India.
With oil supplies from West Asia countries hit due to the Iran war, India has to depend on Russian crude to keep its economy running.
