Treasury Secretary Scott Bessent defended President Donald Trump's recent Russian diesel deal and executive order waiving sanctions under the Graham Act, insisting no sanctions were lifted. The administration's moves aim to curb rising U.S. gas prices averaging $4.31 a gallon ahead of midterm elections, but have drawn strong bipartisan backlash from lawmakers like Senator Thom Tillis. Meanwhile, tension escalates over restrictions on Ukraine's Starlink service.
Trump Russia diesel deal
- ▪Average gas prices in the United States reached $4.31 a gallon on October 17, 2026, representing an increase of nearly 45 percent since the start of the U.S. war with Iran.
- ▪Ukrainian drone strikes targeting Russian oil refineries, including an oil-loading terminal linked to the Novoshakhtinsk refinery in Rostov-on-Don, have disrupted Russian diesel production and global energy supplies.
- ▪The Trump administration authorized certain transactions involving Russian diesel on October 9, 2026, to allow Russia to supply diesel to U.S. and global markets.
- ▪On October 16, 2026, President Donald Trump signed an executive order waiving new sanctions and tariffs provided for under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026.
Bipartisan political criticism
- ▪Representative Michael McCaul and Oklahoma Governor Kevin Stitt expressed concern that President Donald Trump's diesel agreement would provide financial support to the Kremlin and prolong the war in Ukraine.
- ▪Senators Thom Tillis, John Cornyn, and Ted Cruz publicly criticized President Donald Trump's Russia sanctions waiver, with Tillis calling it beyond irresponsible and Cruz calling it a mistake.
- ▪Five Republican lawmakers, alongside Democratic colleagues, sent a letter copied to Treasury Secretary Scott Bessent and Secretary of State Marco Rubio urging President Donald Trump to reconsider the Russian diesel deal.
Conflicting administration explanations
- ▪Energy Secretary Chris Wright stated on October 18, 2026, that the Russian diesel deal serves as an incentive for Russia to reduce its conflict with Ukraine rather than an economic lifeline.
- ▪Secretary of State Marco Rubio stated on October 17, 2026, that Russian diesel would have been sold regardless of U.S. intervention and that the 60-day sanctions pause allows evaluation of economic impacts.
Graham Act sanctions waiver
- ▪The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was enacted by Congress to impose tariffs on major foreign purchasers of Russian energy and entities assisting Russia in evading sanctions.
- ▪President Donald Trump's executive order waiving Graham Act provisions avoids imposing secondary tariffs and sanctions on major buyers of Russian energy, including China and India.
- ▪Kirill Dmitriev, Vladimir Putin's special envoy, called the suspension of Graham Act provisions a historic moment that prevented severe damage to the U.S. economy and global energy markets.
Ukraine Starshield restrictions
- ▪Treasury Secretary Scott Bessent, President Donald Trump, and Secretary of State Marco Rubio denied that the U.S. government directed SpaceX to restrict Ukraine's Starlink access.
- ▪Ukrainian President Volodymyr Zelensky stated on October 18, 2026, that Ukrainian intelligence indicates the directive to limit Starlink access originated from the U.S. government.
- ▪SpaceX implemented speed caps on Ukraine's Starshield satellite internet services, which the Ukrainian Armed Forces rely on to conduct military operations.
Bessent denies sanctions relief
- ▪Treasury Secretary Scott Bessent noted that the United Kingdom waived its embargo on Russian-origin diesel and jet fuel in May 2026 and highlighted European imports of Russian products.
- ▪Treasury Secretary Scott Bessent stated on October 18, 2026, that no sanctions were lifted on Russia and that only the diesel embargo was lifted during a 60-day examination period.
- ▪Treasury Secretary Scott Bessent cited 2025 U.S. sanctions against Russian oil companies Rosneft and Lukoil to assert that no administration has been tougher on Russia than Donald Trump's.
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