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The law would have imposed tariffs of up to 100% on the five largest importers of Russian oil and gas. The idea was to squeeze the oil trade that finances Russia's war in Ukraine.
Trump signed an executive order saying that dropping the sanctions was in the interests of the United States. The order did not say why.
The move comes a week after the administration temporarily lifted sanctions on Russian diesel exports. Ukraine's president, Volodymyr Zelenskyy, said this week that he felt betrayed by the United States.
How do tariffs pressure countries buying Russian oil?
Instead of sanctioning Russia directly, a secondary tariff taxes the goods that a buyer country sells into the American market. The buyer then has to weigh cheap Russian crude against losing access to one of the world's biggest consumer markets. The approach was used in August 2025, when the United States added a 25 percent tariff on Indian goods over its purchases of Russian oil.
Why does oil matter so much to Russia's war?
Taxes on oil extraction and exports feed the federal budget that pays for the military. Russia sells crude on the world market, so every buyer that steps away reduces what comes in. In 2023, oil and gas made up roughly 30 percent of Russia's federal revenue, according to Russia's finance ministry.
How can a president waive a sanctions law?
Sanctions laws often include a clause that lets the president suspend them by declaring that doing so serves the national interest of the United States. The clause gives the president room to negotiate, since Congress cannot easily rewrite terms in the middle of talks. Some waiver clauses require a written notice to Congress. Most US sanctions programs rest on the International Emergency Economic Powers Act of 1977.
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