Trump pauses sanctions package targeted at Russian economy

U.S. President Donald Trump on Friday signed an executive order that puts on hold a sweeping new sanctions package targeting the Russian economy, telling Congress the pause was in the national interest.

Trump personally signed the legislation last month, and his move came just two days before a deadline set in the law itself for its implementation. Named after late South Carolina senator Lindsey Graham, it had sought to clamp down more quickly on the flow of financial resources fuelling the war against Ukraine.

Trump’s unexpected move comes a week after he stunningly said the U.S. had agreed to purchase diesel from Russia to try to bring down global energy prices, despite potentially hurting Ukraine in its war with Russia.

A poll by The Associated Press and the NORC Center for Public Affairs Research published Oct. 1 found that Americans disapprove of the president’s handling of the Iran war and blame him for higher prices.

Trump’s approval ratings have sunk to near-historic lows, and pressure is mounting as Republicans try to hold control of both chambers of Congress on election day Nov. 3.

Graham, a close ally and friend of the president, had just returned from Ukraine when he unexpectedly died in July. He had advocated for stricter U.S. sanctions against Russia as a way of pressuring it to end its war in Ukraine.

His colleagues in Congress responded with bipartisan support after his death, and Trump attached his signature to the legislation — then changed his mind on Friday.

Package aimed to restrict Russia’s war effort

The package had been meant to starve Russian President Vladimir Putin of the resources Moscow needs to continue its war in Ukraine after invading its neighbour more than four years ago. The bill, also drafted by Democratic Sen. Richard Blumenthal, sanctions Russian officials, banks and a shadow fleet of tankers that keeps Russian energy moving.

It also directs Trump to impose up to 100 per cent tariffs on the top five importers of Russian oil or natural gas, with an exception for countries that import less than 15 per cent of Russia’s natural gas exports and have taken significant steps to reduce those imports.

Democratic Rep. Don Beyer noted on social media shortly after the announcement of the sanctions being suspended that he and others had “warned” Trump might make such a move. The veteran congressman, who spoke out against the bill as it was debated, called on Congress to “fix this flawed law to stop Trump from capitulating to Putin and ensure that it truly supports Ukraine.”

The White House did not immediately explain how pausing the sanctions was in the national interest.

The decision was posted on the White House website late in the evening, and the notification noted that the report explaining the decision had been submitted to Congress.

Still, it comes as Trump has increasingly lashed out at Ukrainian President Volodymyr Zelenskyy, blaming him for failing to make a deal with Putin to end the fighting.

The Trump administration has remained mostly quiet since the recent passage of the bill with large bipartisan majorities in the U.S. House and Senate after Graham’s sudden death — with lawmakers urged ahead by Zelenskyy.

Follows deal after Putin call

The U.S. president’s latest action follows his announcement last week that he had reached an agreement with Putin.

Trump said Russia will immediately supply more than 300,000 tons of diesel, followed by an additional 500,000 tons in November and one million tons “immediately thereafter.” Russia will deliver an additional three million tons “within a short period of time” after that, he wrote.

WATCH | Trump, the price of diesel and a deal with Russia:

The broken math of Trump’s diesel deal with Putin | About That

U.S. President Donald Trump says a new diesel deal with Russian President Vladimir Putin will ease soaring fuel costs and lower inflation. Andrew Chang breaks down the agreement and what it means beyond the pump.

Trump’s decision to strike a deal with Putin on diesel on the world market has been pilloried by Republicans and Democrats alike who say it will help Russia execute its war against Ukraine — without making a difference to global fuel prices, which are elevated mostly due to Trump’s war on Iran.

The sanctions that Trump has now suspended, meanwhile, had become a campaign centrepiece for Sen. Darline Graham, the late senator’s sister appointed to serve out the remaining months in his current term. She is also running to replace him in the Senate more permanently.

In a debate earlier this week with Democratic nominee Annie Andrews, Graham — who has Trump’s endorsement and is expected to campaign with him in South Carolina next week — said she had been “so proud” to help get the measure passed but acknowledged it was the president’s purview as to how he implemented it.

“It gives the president tools that he can use if he so chooses, to end the war through economic sanctions,” Graham said on Sunday during a debate in Columbia, S.C.

“So, that’s up to him as to whether or not he wants to use it, or whether he wants to use something else, but I think the purpose of it is to bring down the gas prices and ultimately end the war. And when the war ends, gas prices will fall.”