Washington: US President Donald Trump signed an executive order on October 16 waiving new sanctions and tariffs targeting Russian energy revenues, as relations with Ukraine deteriorated and European leaders called for greater pressure on Moscow.
The decision followed an agreement between Trump and Russian President Vladimir Putin to ease sanctions in exchange for Russia releasing substantial diesel supplies onto global markets, according to AFP.
The Iran war has driven fuel shortages and price increases, creating political difficulties for Trump’s Republican Party ahead of November’s midterm elections.
The waiver concerns measures under the Lindsey Graham Act, signed into law in September, which authorised duties of up to 100 per cent on major buyers of Russian oil and gas. The legislation also targeted Russia’s defence sector, senior officials and tankers used to circumvent Western sanctions.
Tensions with Kyiv deepened after Trump described Ukraine’s resumption of attacks on Russian refineries as a “disgrace”. Ukrainian President Volodymyr Zelensky said he was defending the interests of his country and its people.
During meetings in Brussels, Zelensky requested an additional 70 billion euros, approximately USD 79 billion, in support for 2027, alongside more Patriot air defence missiles.
European Council President Antonio Costa opposed easing sanctions, saying Europe should increase both support for Ukraine and pressure on Russia.
European Commission President Ursula von der Leyen said Ukraine’s funding requirement had to be covered and urged partners to contribute. France and Germany said the request would be examined.
The EU is already disbursing a 90 billion euro loan intended to support Kyiv through the end of 2027. Ukrainian authorities nevertheless warn of a substantial financing gap as Russian attacks damage the economy and threaten electricity, heating and water supplies before winter.
Ukrainian authorities said attacks on Kherson and Zaporizhzhia killed a 64 year old man and at least 17 people respectively, including an 11 year old girl in Zaporizhzhia.
Separately, disruptions to a US supplied satellite system have hampered Ukrainian operations. SpaceX denied responsibility, while a US official denied intervention by Trump.
The funding debate has renewed calls to use approximately 200 billion euros in frozen Russian central bank assets. Belgium, where most of the assets are held, remains opposed.
