Trump waives Graham Act sanctions ahead of Rubio’s India visit
The move comes days before US Secretary of State Marco Rubio’s visit, after S Jaishankar raised concerns over the Graham Act’s implications for Indian refineries
US President Donald Trump on Friday (October 16) issued an executive order waiving sanctions, restrictions and duties under the Sanctioning Russia and Iran Act, citing US national interests. “I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” Trump said.
The announcement comes days ahead of US Secretary of State Marco Rubio’s visit to India.
India’s concerns
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.
Also read: US Senate passes Russia sanctions Bill that seeks 100 pc tariffs on India, 4 others
Jaishankar is understood to have conveyed to Rubio that oil refineries in India were configured largely for handling medium sour crude, which is supplied by Middle East countries and Russia.
He also told 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.
Graham Act
Trump said he had submitted a certification to Congress 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 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.
Also read: US' Russia sanctions bill: Amendment seeks to name India for 100 pc tariffs
The Graham Act, as it is now called, was passed by the US Congress on September 16 and signed into law by Trump two days later.
The law authorised Trump to impose tariffs of up to 100 per cent within 30 days of its enactment on all goods brought into the US 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 a waiver from the application of sanctions, restrictions and duties if such a step is in the national interest of the US. “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,” Trump said.
Section 113 of the Graham Act deals with the imposition of tariffs up to 100 per cent on countries that purchase Russian-origin crude oil or natural gas or facilitate sanctions evasion.
Oil supply concerns
The waiver from the application of the act comes days after Trump struck a deal with Russia for the supply of diesel to the US and global markets. With oil supplies from Middle East countries hit due to the Iran war, India has to depend on Russian crude to keep its economy running.
(With agency inputs)