Trump eases Russia oil sanctions, but Europe still buys Moscow’s gas

President Donald Trump signed an executive order this week that lifts recently adopted sanctions on Russia, saying the step serves the United States’ “national interest.” Earlier in May, the president announced a plan to release Russian diesel into world markets in an effort to curb soaring energy costs linked to the U.S.–Israel conflict with Iran. The Treasury Department has waived sanctions on Russian diesel sales until April 2027.

The decision has drawn sharp criticism from Ukraine, European allies and many U.S. officials, who argue that it rewards Moscow while the country continues its four‑and‑a‑half‑year war against Ukraine. President Volodymyr Zelenskyy called the diesel arrangement “a gift” to President Vladimir Putin that will help finance the war. While European leaders have also condemned the move, Trump has accused them of “hypocrisy,” pointing to data that show EU nations still import Russian gas.

**Sanctions that were dropped**
In the Friday order, Trump cancelled a series of Russia‑related measures that were set to take effect in the coming days. The blocked actions included tariffs on Russian goods and penalties for buying Russian oil and gas. The provisions were part of a bipartisan bill named after the late Senator Lindsay Graham, a vocal critic of Russia. The legislation would have imposed up to 100 percent tariffs on imports from the five largest buyers of Russian crude, among them China and India, and would have levied penalties on countries that knowingly purchased Russian oil or gas within 30 days of the law’s start, or that helped Moscow evade sanctions. The waiver remains in place until the administration decides further action is needed.

Democratic Representative Don Beyer of Virginia described the waiver as a “surrender to Putin” that betrays Ukraine and ignores congressional intent.

**Who stands to gain**
Vasily Astrov, an economist at the Vienna Institute for International Economic Studies, told Al Jazeera that the Russian government is likely to be the biggest beneficiary because the sanction relief will reduce the discount required on Russian oil. He estimated that roughly 60 cents of every additional dollar earned per barrel will flow into the state treasury. Russian official Kirill Dmitriev, an envoy for Putin, praised the U.S. decision as “an important and truly historic moment.”

China and India, the world’s largest importers of Russian crude, will also benefit from a lower risk of secondary U.S. penalties. Trump hopes the policy will help lower fuel prices for American consumers ahead of the November mid‑term elections, though analysts say the impact is uncertain. EU economy chief Valdis Dombrovskis told AFP that the diesel deal is unlikely to move global prices in any meaningful way. He noted that the volumes—300,000 tonnes immediately, 500,000 tonnes in November and a million tonnes thereafter—are modest and raised questions about Russia’s ability to meet quality standards.

**Current buyers of Russian oil**
According to the Centre for Research on Energy and Clean Air (CREA), China bought about €6 billion ($6.74 billion) of Russian crude in September, while India purchased €3.6 billion ($4.04 billion). Hungary and Slovakia, EU members with exemptions to the bloc’s crude ban, together imported €290 million ($326 million) in the same month, and Turkey bought €172 million ($193 million). Since late 2022, the top importers of Russian oil products such as diesel have been Turkey, China, Saudi Arabia, Brazil and Singapore. In September, Saudi Arabia led with €534 million ($600 million) of Russian oil products, followed by Turkey (€321 million/$361 million), China (€304 million/$342 million) and India (€161 million/$181 million).

**Europe’s gas imports from Russia**
The European Council issued a joint statement after a two‑day meeting in Brussels, expressing regret over the United States’ temporary lift of diesel sanctions. Despite a near‑total ban on Russian oil, the EU continues to import significant volumes of Russian gas, although it plans to phase out those supplies next year. German research group Urgewald reported that more than 12 million tonnes of Russian Arctic LNG entered EU ports from January through September, a 9.5 percent rise over the same period last year. In September alone, EU nations bought €817 million ($918 million) of pipeline gas and €615 million ($691 million) of other gas forms.

The contrast between the U.S. easing of oil sanctions and Europe’s ongoing reliance on Russian gas highlights the complex energy dynamics shaping the continent’s response to Moscow’s war in Ukraine.