This month, President Trump issued Executive Order 14436 waiving the implementation of significant sanctions and tariff measures on Russia under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (the Graham Act), just two days before the measures were scheduled to take effect. The Graham Act establishes sweeping economic restrictions targeting Russia, including additional tariffs on Russian-origin goods and imports from countries determined to be major purchasers of Russian energy or facilitating sanctions evasion, as well as expanding sanctions targeting Russian officials, financial institutions, government-affiliated enterprises, and certain foreign persons supporting Russia’s military activities. Executive Order (E.O.) 14436 suspends these new measures while preserving existing sanctions against Russia.
Several of the Graham Act’s sanctions provisions overlap with restrictions previously imposed under existing U.S. sanctions authorities, while others establish additional statutory obligations, prohibitions, and periodic review requirements.
Overview of the Graham Act
President Trump signed the Graham Act into law on September 18, 2026. The legislation, which received bipartisan congressional support, established an expansive framework of economic sanctions, trade restrictions, and financial penalties intended to increase pressure on Russia in connection with its ongoing war in Ukraine. In addition to its Russia-related measures, the Graham Act also extended the Iran Sanctions Act of 1996 through December 31, 2031, preserving the statutory framework for sanctions targeting certain activities involving Iran, including investments in its petroleum sector.
Among its most significant provisions, the Graham Act established substantial additional tariffs on Russian-origin goods, as well as on imports from certain countries purchasing Russian energy or facilitating sanctions evasion. Specifically, the Graham Act provided for the following:
Tariff Measures
- Russian-origin imports: Additional duties of up to 500 percent ad valorem on all goods imported into the United States from Russia, including crude oil, natural gas, liquefied natural gas, petroleum and petrochemical products, coal, and coal products. These duties would apply in addition to other applicable tariffs, including antidumping and countervailing duties and duties imposed under Sections 232 and 301.
- Purchasers of Russian energy: An increased tariff rate of up to 100 percent ad valorem on all goods imported into the United States from countries ranking among the five largest importers of Russian-origin crude oil or natural gas, measured by total import volume during the 12 months preceding enactment, provided that those countries knowingly made new purchases of Russian energy on or after October 18, 2026. The Graham Act also establishes an exception for certain natural gas-importing countries that accounted for less than 15 percent of Russia’s annual natural gas exports and had taken significant steps to reduce their Russian gas imports.
- Facilitators of sanctions evasion: An increased tariff rate of up to 100 percent ad valorem on all goods imported into the United States from the five countries determined by the President or the U.S. Trade Representative to have most significantly facilitated the evasion of sanctions on Russian-origin oil during the 12 months preceding enactment. Covered activities include knowingly providing significant financial or logistical support for sanctioned Russian oil shipments and facilitating transactions involving vessels in Russia’s so-called “shadow fleet,” which are used to transport Russian oil subject to sanctions.
Sanctions and Financial Restrictions
- Russian government officials and military suppliers: Requires periodic reviews and sanctions determinations concerning senior Russian officials, foreign persons supplying specified goods and services to Russia’s defense industrial base, and persons conducting significant transactions with the Russian armed forces. The Graham Act also addresses vessels facilitating sanctions evasion and foreign persons providing associated services.
- Russian financial institutions: Mandates additional sanctions against major Russian banks, including Sberbank, VTB Bank, and Gazprombank, as well as certain foreign financial institutions conducting significant transactions with covered Russian banks. These measures include blocking sanctions, restrictions on correspondent and payable-through accounts, and additional sanctions under the Countering America’s Adversaries Through Sanctions Act.
- State-owned and government-affiliated enterprises: Requires periodic reviews and blocking sanctions against entities determined by the President to be majority-owned, controlled, or otherwise affiliated with the Russian government.
- Financial transactions and investments: Expands upon existing Russia-related financial restrictions, including prohibitions on certain transfers involving the Russian government, securities trading involving Russian government-affiliated issuers, new investments in Russia by U.S. persons, and purchases of Russian sovereign debt.
- Energy-sector restrictions: Prohibitions involving certain energy exports to Russia and investments in Russia’s energy sector.
- Financial messaging services: Restrictions on international financial messaging systems providing services to designated Russian financial institutions, subject to statutory exceptions.
- Russian uranium: Measures implementing restrictions on Russian uranium imports and providing for sanctions against certain officials and controlling shareholders of Rosatom and related entities.
Presidential Waiver Authority
Invoking the waiver authority under Section 115 of the Graham Act, President Trump waived the application of the Graham Act’s principal Russia-related sanctions, restrictions, and tariff measures after certifying to Congress that doing so was in the national interests of the United States. E.O. 14436 provides that the waivers will remain effective until the President or the Secretary of State determines that further action is appropriate. Notably, E.O. 14436 does not waive the extension of the Iran Sanctions Act, which remains in effect independently of the waived Russia-related measures.
Implications for International Trade and Sanctions Compliance
The waiver has significant implications for companies engaged in international trade, particularly those operating in energy markets or maintaining commercial relationships with countries that purchase Russian oil and natural gas. By waiving the Graham Act’s tariff provisions, the administration has temporarily suspended substantial U.S. import duties on goods from certain countries that purchase Russian energy or facilitate sanctions evasion.
Nevertheless, the waiver does not eliminate existing U.S. sanctions against Russia. Companies remain subject to applicable restrictions administered by the Department of the Treasury’s Office of Foreign Assets Control, including existing prohibitions on transactions involving sanctioned Russian persons and entities.
E.O. 14436 also preserves considerable flexibility for future enforcement. Its provisions contemplate continued monitoring of Russian energy purchases and permit the administration to revisit the waivers and reinstate the Graham Act’s measures. Accordingly, businesses with direct or indirect exposure to Russian trade may be affected by further developments in sanctions designations, financial transactions, and country-specific tariff exposure.
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Cassidy Levy Kent’s attorneys, compliance professionals, economists, and licensed customs brokers assist clients navigating export controls and sanctions issues. We expect further developments in this space and will continue to provide updates. Please contact us with any questions.