US President waives Graham Act tariffs on Russian oil buyers
US President Donald Trump on 16 October 2026 signed an executive order that sets the duties of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 and waives them at once, certifying to Congress that the waiver serves US interests. The Act provides for 100% duties on the five largest buyers of Russian oil and gas, including India.
Syllabus: Prelims · Current Affairs & IR; GS3 · Infrastructure; GS2 · Foreign Policies & the Diaspora
Why this matters for UPSC
GS2 Mains asks how the policies of developed countries affect India's interests and energy security. Prelims can ask how UN Security Council sanctions under Chapter VII differ from unilateral US measures, and what the USTR and OFAC are.
Why it matters
Picture an Indian refinery buying discounted Russian crude and, in another city, an Indian firm that sells most of its output in the US. Under this law the refinery's purchases could have raised the US duty on everything the firm exports there, doubling its price at the border. The waiver lifts that threat for now. But the US executive can end the pause by a decision, with no vote in Congress, so the lever over India's oil choices stays in Washington. The larger question is strategic autonomy: India buys oil where it is available, and a partner's domestic law can put a price on that choice. Analysts note that disruption in the Strait of Hormuz has made Russian crude a key source of India's energy security.
Prelims pointers
- Chapter VII of the UN Charter (Articles 39-51): action with respect to threats to the peace, breaches of the peace and acts of aggression.
- Article 41, UN Charter: Security Council measures without armed force, such as interrupting economic relations and communications or severing diplomatic ties; Article 42 covers armed action.
- Article 25, UN Charter: members agree to accept and carry out the decisions of the Security Council.
- USTR is part of the Executive Office of the President and serves as the President's principal trade adviser, negotiator and spokesperson.
- Section 232, Trade Expansion Act of 1962: the Secretary of Commerce investigates whether imports threaten to impair US national security, reporting within 270 days; the President may adjust imports.
- Office of Foreign Assets Control (OFAC): part of the US Treasury's Office of Terrorism and Financial Intelligence; formally created in December 1950 after China entered the Korean War.
- Executive Order 14024 (15 April 2021) blocks property over specified harmful foreign activities of the Russian Government; OFAC's Russia programme rests on IEEPA and the National Emergencies Act.
- Countering America's Adversaries Through Sanctions Act (CAATSA), Public Law 115-44, signed on 2 August 2017: sanctions on Iran, Russia and North Korea.
Practise a UPSC-style question
With reference to sanctions imposed by the United Nations Security Council, consider the following statements:
1. The Council imposes them under Chapter VI of the UN Charter, on the pacific settlement of disputes.
2. Measures under Article 41 of the UN Charter may include the severance of diplomatic relations.
3. Under Article 25 of the UN Charter, members agree to accept and carry out the Council's decisions.
Which of the statements given above is/are correct?
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Show the answer
Answer: (b) 2 and 3 only
Answer: (b) 2 and 3 only. Council sanctions come under Chapter VII, not Chapter VI; the other two statements quote the Charter.
Statement 1: incorrect. Sanctions are enforcement measures under Chapter VII (Articles 39-51), on threats to the peace, breaches of the peace and acts of aggression.
Statement 2: correct. Article 41 lists measures not involving armed force, including interruption of economic relations and severance of diplomatic relations.
Statement 3: correct. Article 25 binds members to accept and carry out Security Council decisions, which is why UN sanctions apply to all.
Eliminate: statement 1 is the surest to be wrong, since sanctions are Chapter VII enforcement. Out: (a), (c), (d).
Trap: Look-alike names. Chapter VI and Chapter VII sit side by side and both deal with peace, but only Chapter VII allows binding enforcement.
Remember: UN sanctions are Chapter VII, Article 41; Article 25 makes them binding.
Explainers on this topic
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