Trump-Putin Diesel Deal: Can The US President Bypass His Own Russia Sanctions Law?

(MENAFN- Live Mint) US President Donald Trump's decision to allow Russian diesel supplies to global markets has raised questions about how the move fits with a new law empowering him to impose tariffs of up to 100% on major purchasers of Russian oil and gas.

Trump announced the diesel agreement with Russian President Vladimir Putin on Friday, claiming it would swiftly bring down record-high diesel prices. The announcement came just three weeks after he signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law.

The legislation empowers Trump to impose tariffs of up to 100% on major buyers of Russian crude oil or gas, among other restrictions. However, the latest diesel arrangement has prompted criticism that Washington is easing pressure on Moscow even as it seeks to end the war in Ukraine.

“Congress just passed a law giving Trump the power to impose new tariffs on major buyers of Russian oil & gas,” Scott Lincicome, vice president of the libertarian Cato Institute, said on X after the announcement.

“Can America tariff America?” he quipped.

What does the diesel deal allow?

Under the agreement, Russia will immediately supply more than 300,000 tons of diesel, followed by another 500,000 tons in November. A further 1 million tons will arrive“immediately thereafter”, with 3 million more depending on refinery conditions, Trump said in a Truth Social post.

The US Treasury Department subsequently said Trump had directed the Office of Foreign Assets Control (OFAC) to issue a temporary general licence allowing Russian diesel supplies to the global market.

Also Read | Trump, Putin diesel deal: What it means for US and global markets

OFAC specified that the sanctioned transactions would be authorised for about six months, until 7 April.

The White House did not immediately respond to CNBC's questions about the diesel agreement with Russia.

9167385310

Can the US president bypass his own? Here's what experts say

Senator Richard Blumenthal, a Democrat from Connecticut and member of the Senate Ukraine Caucus, accused Trump's decision of being“directly contrary to Congress's intent in our bipartisan sanctions bill”.

Peter Harrell, visiting scholar at Georgetown University Law Center's Institute of International Economic Law, said on X that relaxing Russian diesel restrictions“pretty much proves the point that the Graham Russia Bill was not going to force the Trump Administration to increase economic pressure on Moscow.”

Criticism also came from Republicans. Representative Michael McCaul of Texas said the legislation had given Trump“significant authorities and leverage against China and Russia to bring Putin's war to an end with a negotiated settlement”.

“Unfortunately, while I understand the desire to bring down diesel prices, I am concerned the lifting of sanctions on Russian oil will only fund the Kremlin's war machine-emboldening more violence and destruction, as we have seen in recent days,” McCaul said in an X post.

What does Ukraine say?

Ukrainian President Volodymyr Zelenskyy said the US decision to ease sanctions on Moscow“plays into Russia's hands”.

“Any easing of sanctions against Russia without a clear and lasting de-escalation agreement with Russia is an obvious weakness,” Zelenskyy said.“Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged.”

Trump has previously criticised countries that continue to purchase Russian energy. In September 2025, he wrote on Truth Social:“the purchase of Russian Oil, by some, has been shocking! It greatly weakens your negotiating position, and bargaining power, over Russia.”

Earlier this year, his administration issued limited, 30-day waivers allowing countries to buy sanctioned Russian oil that was already in transit after the Iran war began.

Also Read | 'Paid by enemies': Trump lashes out at protesters amid Texas rally interruptions

Jeremy Siegel, professor emeritus of finance at the Wharton School of the University of Pennsylvania, described the latest move as a short-term measure.

“It's not a permanent solution at all. It's sort of a short-term Band Aid,” Siegel told CNBC's Closing Bell.“And cutting back on or eliminating sanctions on Russia for the invasion in Ukraine, I think, is a very unfortunate consequence.”

MENAFN10102026007365015876ID1111786480