Congress Gave Trump a Sanctions Hammer Three Weeks Ago. He Lifted Sanctions on Russian Diesel Instead.
The Issue
President Trump said Friday that after a call with Vladimir Putin, Russia would immediately release hundreds of thousands of tons of diesel onto the world market, and the Treasury Department's Office of Foreign Assets Control, OFAC, issued General License 135, which permits the sale, delivery and importation of Russian diesel, including into the United States, through April 7, 2027. Diesel averaged $6.27 a gallon on Friday, $2.60 above a year ago. The move cuts against a law Trump signed three weeks ago. The Lindsey O. Graham Sanctioning Russia and Iran Act, signed September 18, orders the president to raise tariffs on all goods from Russia, up to 500 percent, within 30 days, a deadline that falls on October 18, and to put tariffs of up to 100 percent on the five countries that buy the most Russian oil and gas. The president can skip those measures only by certifying to Congress that skipping them serves the national interest. Friday's license is a different instrument: OFAC suspended the 2022 ban on importing Russian oil and fuel, so Russian diesel can now land at American ports. No tariff and no waiver has been announced, so the law and the license point in opposite directions. Either Russian diesel gets taxed when it arrives, which defeats the purpose of buying it, or Trump signs a waiver and tells Congress why. Ukrainian President Volodymyr Zelensky said on X, as Politico reported, that the deal "plays into Russia's hands," and accused Trump of using peace talks in Florida as a smokescreen.
Nineteen Democrats made the same two-part argument: the war with Iran sent diesel prices up, and the fix pays the man whose forces, in their telling, are helping Iran target American troops. Sen. Chuck Schumer (D-NY) called it a deal with the devil. Sen. Richard Blumenthal (D-CT) said it runs against the intent of the sanctions law and insults the memory of the senator it is named for, who died in July. Rep. Jim Himes (D-CT) said this is why he voted against that law, and Rep. Don Beyer (D-VA) called trusting Trump with its tariff powers a mistake. Sen. Ruben Gallego (D-AZ) pushed the No Oil Profits for Enemies Act, which he and Sen. Chuck Grassley (R-IA) introduced in April with three senators from each party. It would give Congress 30 days to review any easing of Russia sanctions, including energy licenses like Friday's. Three Republicans spoke. Rep. Don Bacon (R-NE) posted all day that buying Russian fuel is the wrong answer to diesel prices and told Politico the president has "a moral blindness towards Putin." Rep. Michael McCaul (R-TX) said he is concerned the move will fund the Kremlin's war machine. Rep. Anna Paulina Luna (R-FL) cheered a massive oil deal.
Verifiable Claims:
- Through the Graham act, Congress gave the president significant authorities and leverage against China and Russia to end Putin's war with a negotiated settlement - stated by Rep. Michael McCaul (R-TX)
- Congress gave Trump expanded tariff powers in the hope he would use them to help Ukraine, and he is instead lifting sanctions on Russian fossil fuels - stated by Rep. Don Beyer (D-VA)
- Himes voted against the Russia sanctions bill because he believed Trump would never sanction Russia - stated by Rep. Jim Himes (D-CT)
- The bipartisan NOPE Act would stop the president from easing Russia sanctions on his own - stated by Sen. Ruben Gallego (D-AZ)
- The Russian diesel in question is less than two hours of global demand and will not lower pump prices - shared by Rep. Don Bacon (R-NE)
- Rather than use the sanctions Congress authorized against Putin, the administration sanctioned the International Criminal Court, which seeks Putin's arrest over the abduction of Ukrainian children - stated by Rep. Lloyd Doggett (D-TX)
Opinions & Characterizations:
- "70% of Americans support Ukraine. Propping up Putin's war economy is morally wrong as he uses that money to bomb cities. The President's policies towards Russia and Ukraine are failures. We need moral clarity not moral ambiguity." - Rep. Don Bacon (R-NE)
- "We need lower diesel prices for American farmers, ranchers and consumers, but buying Russian fuel is the wrong answer." - Rep. Don Bacon (R-NE)
- "I'm against appeasing a war criminal." - Rep. Don Bacon (R-NE)
- "Massive OIL deal, benefit benefits, everyone! Wait till you see what the trade deal looks like. Peace deals are a good thing." - Rep. Anna Paulina Luna (R-FL)
- "Trump is doing a deal with the devil to try to help his flailing political fortunes from the shockingly high diesel prices caused by his own reckless, illegal war in the Middle East." - Sen. Chuck Schumer (D-NY)
- "This announcement is a disgrace. You know how Trump could bring down gas and diesel prices? By ending his illegal war with Iran. Instead, he's going to help fund Putin's war machine." - Sen. Elizabeth Warren (D-MA)
- "This agreement with a murdering dictator is a stain on our nation's character, an insult to Lindsey Graham's memory, & directly contrary to Congress's intent in our bipartisan sanctions bill." - Sen. Richard Blumenthal (D-CT)
- "The President should rescind this agreement immediately. To the American companies considering taking Putin's blood money: Congress is watching." - Sen. Richard Blumenthal (D-CT)
- "Putin throws lifeline to try to save Trump in the midterms. In return, American dollars go to Russia and get put toward killing innocent Ukrainians. Trump/Russia right out in the open." - Sen. Sheldon Whitehouse (D-RI)
- "Trump started a war with Iran that drove up diesel prices. NOW he's rewarding Putin with a windfall agreement that won't even lower prices." - Sen. Ron Wyden (D-OR)
- "Trump started a stupid & illegal war in Iran that has driven up diesel prices. Now he wants to bankroll Putin's illegal war against Ukraine by buying diesel from him. One strategic disaster after the next." - Sen. Chris Van Hollen (D-MD)
- "If he wants to lower prices, the president should just end his costly war with Iran, not cut a sweetheart deal with Putin that'll fund Putin's war with Ukraine." - Sen. John Hickenlooper (D-CO)
- "Lifting sanctions on Russia will only fuel Putin's war machine and prolong the conflict in Ukraine." - Sen. Dick Durbin (D-IL)
- "American money has no place in Putin's pocket. This is a deal with the devil in every sense of the word, and it's happening because Trump finds himself unable to end his war." - Rep. Frank Pallone (D-NJ)
- "So you're funding the Russian war against Ukraine because you started a losing war in Iran." - Rep. Jake Auchincloss (D-MA)
- "Vladimir Putin is not our friend. America should not treat him like one." - Rep. Jason Crow (D-CO)
- "If Trump keeps cutting (illegal) oil deals with Russia, we may just have to start sanctioning ourselves." - Rep. Dave Min (D-CA)
- "What a desperate and short sighted move. Trump ran on America First but has no idea how to actually deliver for the American people." - Sen. Andy Kim (D-NJ)
TL;DR - The Partisan Split:
Every Democrat who posted told one story, that the Iran war raised diesel prices and Trump is now paying Putin to lower them, and half of them added that Congress had just handed him sanctions to use the other way. Three Republicans broke silence. Rep. Don Bacon (R-NE) was the harshest critic in either party, Rep. Michael McCaul (R-TX) said the move will fund the Kremlin, and Rep. Anna Paulina Luna (R-FL) was the only member to applaud. The institutional fight is over the NOPE Act, a bipartisan bill from April that would give Congress 30 days to review any easing of Russia sanctions, which Friday's license would have triggered. Neither the Republican leadership nor that bill's four Republican cosponsors, Sens. Chuck Grassley (R-IA), Roger Wicker (R-MS), Thom Tillis (R-NC) and Ted Cruz (R-TX), posted a word about the license. Bacon's retweet of a Latvian lawmaker summed up the skeptics' case, that the diesel is less than two hours of world demand and will not move the pump price.