Sanctions Update No. 37 | LKS Attorneys

US President signs Executive Order temporarily waiving imposition of sanctions and tariff duties under the Graham Act

On 16 October 2026,[1] US President Donald Trump signed an Executive Order (“EO”) 14436 that implements the provisions of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (22 U.S.C. 10802 et seq.) (“Graham Act”).

What is the effect of this Executive Order?

The Graham Act was signed into law on 18 September 2026. It requires the US President to:

- Increase duties on all goods imported into the US, of Russian origin, up to 500% ad valorem.

- Increase duties on all goods imported into the US, from countries which the US President deems to be either top importers of Russian crude oil/natural gas, or facilitating Russian circumvention of US sanctions.

- Impose sanctions with respect to non-US individuals and entities which have certain Russia-related links.

The US President was required to undertake the above actions by 18 October 2026.

While the EO imposes the above measures, it simultaneously suspends their application through a waiver. Accordingly, the implementation framework remains in place, and the measures may become operative upon revocation of the waiver. Section 115 of the Graham Act allows the US President to do so, i.e., issue this waiver in ‘national interest.’

Does this waiver apply indefinitely?

No. While the timeline of these waivers is not defined, they are designed to be time-barred. As such, the EO outlines that they remain in force until the US President or the appropriate US Executive Agency determines that further action is appropriate. However, US Secretary of State Marco Rubio has reportedly stated that the US President will use up to 60 days to assess the economic impact of the Russia-related sanctions that have been waived due to this EO.[2]

Does this waiver mean that the US has suspended sanctions on Russia overall?

No. This EO expressly states that it does not affect sanctions already imposed under prior Russia-related Executive Orders. Existing U.S. sanctions targeting Russian and other non-US persons, entities and activities therefore remain in force.

What is actually implemented into force by this EO, that is not simultaneously suspended/waived?

This EO directs US Trade Representative, Department of Treasury, Department of State, and Department of Energy to:

monitor purchases of Russian-origin crude oil and gas;
monitor sanctions-evasion activity;
identify countries that could fall within the Act's tariff provisions; and
regularly report to the President and recommend further action.

LKS Comments

While this Executive Order formally implements the Graham Act, its immediate practical effect is limited by the Administration's simultaneous use of the Act's waiver authority. Importantly, the Executive Order does not waive, suspend, or otherwise affect existing Russia-related sanctions imposed under prior U.S. sanctions authorities, which remain fully in force.

It is also significant that on 9 October 2026,[3] the US issued a General License authorizing transactions related to the purchase and import of diesel fuel of Russian origin. Reportedly, US President Trump struck a deal with Russia to import more than 2.25 million barrels (300,000 tons) of diesel fuel with an additional 3 million tons to be released “within a short period of time”, depending on the state of Russian refineries.

From a risk perspective, the significance of the Executive Order 14436 lies in the fact that the US now possesses a fully operational framework under which any or all of the Act's sanctions, secondary sanctions, restrictions, and tariff measures could be activated at relatively short notice should it determine that further action is warranted. As such, companies with direct or indirect exposure to Russia, Russian-origin energy, or activities that could be perceived as facilitating sanctions evasion should continue to monitor developments closely, as the current waivers may be modified or withdrawn in the future.

[1] Implementing the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, available here, last visited 21 October 2026.

[2] Rubio says Trump to take up to 60 days to weigh Russia sanctions, available here, last visited 21 October 2026.

[3] OFAC General License No 135, available here, last visited 21 October 2026.