Investors who buy idle sanctioned tankers and refit them could put the ships back into legal oil trade, US Energy Secretary Chris Wright said on 19 October, Bloomberg reported. He laid out the plan five days after a US official described it to Reuters.

That official said the aim was to cut record tanker freight rates. The Energy Department added that any relief would not help Russia move its oil. The plan comes weeks before the 3 November midterms, with voters worried about fuel costs after gasoline and diesel prices surged in the Mideast conflict. Yet the shadow fleet is also how Russia sells oil past sanctions, and those sales fund its war against Ukraine. In December 2025, Ukraine’s foreign intelligence counted more than 1,100 tankers serving Russia alone, 226 of them under US sanctions.

An approval process Wright didn’t detail

Many sanctioned tankers sit idle, Wright told Bloomberg’s Annmarie Hordern, and buyers keep approaching the administration offering to fix them up and carry only legal oil.

“We’re going to move some of the ships from what I call the ‘bad-guy fleet’ to the ‘good-guy fleet,’” he said. “They will not carry sanctioned oil anymore.”

The ships must go through an approval process, Wright said, but he gave no criteria. He insisted “there is no removing of sanctions.”

He put the global dark fleet at about 1,600 ships, a count covering vessels that hauled Venezuelan, Iranian, and Russian oil. Dozens or even hundreds could turn legitimate, he said. The ships are no longer needed for Venezuelan oil, Wright said, and no Iranian oil is moving. Russian oil exports, he added, “are certainly not growing.”

Diesel, a waiver, and the tankers

Earlier, on 9 October, the Treasury issued General License 135, allowing some deals in Russian diesel until 7 April 2027. On 16 October, US President Donald Trump waived sanctions and tariffs under the Graham Act, leaving earlier sanctions intact. That law had directed him to review and sanction shadow-fleet vessels. Trump defended the waiver as a way to keep Moscow at the negotiating table.

House Speaker Mike Johnson told Fox News host Larry Kudlow on 18 October that he had asked the White House team to “carefully consider the unintended consequences,” The Hill reported. He added that he thought “the right decision will be made” in the end.

A bipartisan group of 22 House lawmakers is urging President Donald Trump to fully implement the new Russia sanctions law and revoke a license allowing certain Russian diesel transactions. In a letter sent on 15 October, they copied Secretary of State Marco Rubio and Treasury Secretary Scott Bessent and requested details on planned sanctions, tariffs and waivers.

Their request comes as the law’s first requirements fall due on 18 October, while lawmakers from both parties challengethe administration’s decision to allow certain Russian diesel transactions. Some restrictions take effect automatically, while others require presidential action. The law does not specify a penalty for the president missing the deadline.

What the Russia sanctions law requires

Congress passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by votes of 86–11 in the Senate and 262–159 in the House. Trump signed it on 18 September. Graham, a Republican senator from South Carolina, died in July.

Restrictions taking effect automatically on 18 October include a ban on US banks and broker-dealers processing transfers to or from the Russian government, a ban on new US investment in Russia, a ban on new US investment in Russia’s energy sector, and a ban on US energy exports to Russia.

Other measures require presidential action by the same date. The law directs Trump to review and sanction Russian officials, oligarchs and shadow-fleet vessels, sanction the Bank of Russia, specified Russian banks and state-owned companies, and impose tariffs of up to 500% on Russian goods. Tariffs of up to 100% can apply to goods from countries among the five largest importers of Russian oil or gas, or among the top five countries facilitating Russian oil sanctions evasion.

Trump may waive sanctions, restrictions and tariffs under the law if he first certifies in writing to Congress that a waiver is in the US national interest and submits a report explaining its basis.

The diesel license at the center of the dispute

House members also urged Trump to revoke General License 135, which the Treasury Department issued on 9 October and that is valid until 7 April 2027. It permits certain transactions involving Russian-origin diesel, including imports into the United States. Trump said Russia would immediately supply more than 300,000 tons of diesel to US and global markets and predicted prices would fall sharply, according to a 9 October Truth Social post.

On 13 October, a bipartisan group of 12 senators also urged Trump to rescind the deal and revoke the license. Seven senators said the deal conflicted with a 2022 law banning Russian energy imports.

The Graham Act says nothing in its provisions affects the Treasury secretary’s existing authority to issue general licenses. That provision does not resolve whether the diesel license complies with the separate 2022 law.

A White House official told Newsweek the administration would comply with the Graham Act. Bessent said the administration would use “all the legal authorities we have” and called the deal “good for the American people,” Fox News reported on 11 October.

How the sanctions could be lifted

Separately, the law sets a process for terminating sanctions, restrictions or duties against Russia. Trump must report to Congress that Russia has signed a peace agreement accepted by Ukraine’s government and ceased military hostilities against Ukraine, as well as activities to overthrow, dismantle or subvert its government. Congress has 30 days to block termination through a joint resolution of disapproval, or 60 days for reports submitted between 10 July and 7 September.

The Trump administration is weighing looser sanctions on shadow fleet tankers that have hauled oil from Russia, Iran, and Venezuela, a US official said on 14 October, Reuters reported. An industry research group expects the change to do little for freight rates.

With Reuters calling high fuel prices a risk for Trump before the 3 November midterms, Washington has already eased sanctions on Russian oil and diesel this year and is now looking at the ships blacklisted for hauling sanctioned cargoes. In March, Treasury Secretary Scott Bessent said a waiver on Russian oil at sea would bring Moscow no significant financial benefit, yet Russia’s seaborne oil income jumped by $890 million in the week to 15 March, Bloomberg data showed.

“Legal oil” on blacklisted ships

The talks center on letting “legal oil” sail on previously sanctioned vessels, the official said. Only crude or fuel free of US sanctions would qualify, not Russian or Iranian oil. Washington wants more crude and refined products moving out of the Gulf, the official added. Companies would need US Treasury approval to use the ships.

Research group Energy Aspects said US Energy Secretary Chris Wright, in a video to the World Petroleum Congress in Riyadh, tied the easing to record freight rates. Those rates hit records after the Iran and Ukraine wars drove up inflation and left US crude too costly for Asian refiners, Reuters said. Energy Aspects itself expects the easing to do little for freight rates, since most tankers sanctioned over Russian or Venezuelan links have kept trading for the past three months.

The Energy Department said any relief would do nothing to help Russia ship its oil or refined products. Treasury referred questions to the Energy Department. Yet Reuters noted that both departments could face pressure to let these vessels carry Russian diesel, given Trump’s push to get it onto world markets fast.

Britain is pushing the other way. UK finance minister John Healey urged counterparts at International Monetary Fund meetings in Bangkok on 15 October to keep tough sanctions on Russia, “especially a tighter ban on shipping services” that keep Putin’s shadow fleet operating.

Diesel license criticism and an unconfirmed ceasefire

On 9 October, the US Treasury issued a license clearing Russian-origin diesel trade until 7 April 2027. Ukrainian President Volodymyr Zelenskyy told reporters it was a weak decision unworthy of Ukraine’s partners. Democratic Senators Jeanne Shaheen, Chuck Schumer, and Elizabeth Warren called it a “total betrayal of Ukraine.” Republican Senator Thom Tillis said there is “a legitimate case for saying the president’s not following the law.”

Trump then pressed Kyiv to spare Russian refineries and declared an “energy ceasefire” on 11 October. A White House official told Axios it covers only oil refineries. Neither side confirmed a similar announcement Trump made in mid-September, AAP reported.

Kremlin spokesperson Dmitry Peskov told reporters on 13 October that contacts on the ceasefire were continuing and referred further questions to Trump, Russian newspaper Vedomosti reported. He claimed the diesel deal was “a very mutually beneficial item of Russian-American cooperation” that serves the interests of Russia, the US, and world energy markets, Russian newspaper Kommersant reported.

Seven US senators from both parties said the Trump administration's decision to authorize Russian diesel imports conflicts with a 2022 law banning Russian energy imports and accused it of failing to consult Congress, in a statement on 11 October.

The dispute comes as the war with Iran drives up US fuel prices, which US President Donald Trump has blamed on Ukraine's strikes on Russian refineries. Trump says Russian supplies will help bring prices down, while lawmakers warn that purchases could provide Moscow with revenue to continue its war against Ukraine.

The senators—Republicans Susan Collins, Lisa Murkowski, Thom Tillis, and John Curtis, and Democrats Jeanne Shaheen, Richard Blumenthal, and Ron Wyden—called on the administration to reverse course, saying the US should not provide Russian President Vladimir Putin with “a financial lifeline.”

What the 2022 law requires before the ban can end

The law, signed on 8 April 2022, allows the president to end the import ban only after submitting a certification to Congress. The certification must find that Russia has agreed to pull out its forces and stop the fighting on terms Ukraine's free and independent government accepts, no longer poses an immediate threat of attack to any NATO member, and recognizes Ukrainians' right to pick their own government.

The law also requires consultation with four congressional committees and a report at least 45 days before certification. The termination takes effect 90 days after certification unless a joint resolution of disapproval is enacted into law during that period. The senators allege the administration failed to meet the consultation and reporting requirements. Their statement does not establish whether a certification has been submitted.

Treasury’s license cites sanctions rules, not the 2022 law

The Treasury Department's Office of Foreign Assets Control issued General License No. 135 on 9 October, authorizing certain transactions involving Russian-origin diesel that would otherwise be restricted under US sanctions regulations. It runs until 7 April 2027 and cites sanctions regulations, not the 2022 import-ban law.

Treasury Secretary Scott Bessent defended the deal on Fox News on 11 October, saying the administration would proceed under existing legal authority. He said lawmakers who argued that either the earlier law or the current Lindsey Graham sanctions law prohibited the deal were wrong, and argued the agreement would lower prices, Reuters reported.

How much diesel Trump says Russia will supply

Trump said on Truth Social that Russia would immediately supply more than 300,000 tons of diesel to US and global markets, followed by 500,000 tons in November and 1 million tons after that. He said Russia would deliver another 3 million tons “within a short period of time,” depending on the condition of its diesel refineries. The promised volumes have not been independently verified.

Russia partially lifted its diesel export ban on 10 October, allowing 500,000 tons onto the global market at this stage, the Russian government said, according to state news agency TASS.

A House bill to block Russian oil purchases

Pennsylvania Republican Rep. Brian Fitzpatrick plans to introduce the Ronald Reagan Peace Through Strength Act to block Russian oil purchases and use a discharge petition to force a House vote, Axios reported. The procedure can force consideration of a bill if 218 House members sign. Republican Rep. Don Bacon said he would support the bill and called Trump's decision a serious mistake, according to Ukrainska Pravda.

Barrasso defends the deal. Zelenskyy calls it an investment in war

On CBS's Face the Nation on 11 October, Senate Majority Whip John Barrasso, a Republican from Wyoming, called the deal “another point of leverage” for Trump to use against Putin. Asked whether the decision violated US law, Barrasso said the president was balancing competing priorities and had to make tough decisions.

Ukrainian President Volodymyr Zelenskyy wrote on Telegram on 9 October:

“Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged.”

Trump also expects Ukraine to stop striking Russian refineries under his proposed energy ceasefire, a White House official told Axios. Zelenskyy said Kyiv would halt such strikes if Moscow did the same.

Washington has put its sanctions on Russian diesel on hold. The US Treasury has authorized the sale, delivery, offloading, and import of Russian-origin diesel fuel, effectively suspending sanctions on that trade until 7 April 2027, the Office of Foreign Assets Control (OFAC) said on its website on 9 October.

The waiver lets Russian diesel back onto world markets and, Ukraine argues, hands Moscow fresh revenue for its war, which has killed more than 80 Ukrainian civilians in two days. Until now, it was unclear whether Washington would roll back the sanctions it imposed on Russia in 2022.

OFAC has issued the measure as General License 135, signed by the office’s director, Bradley Smith, according to the report. It authorizes transactions in Russian-origin diesel that sanctions would otherwise block.

The license sets one limit. It does not permit any debits from accounts at US financial institutions held by Russia’s central bank, its National Wealth Fund, or its finance ministry, the document says.

Trump’s promise of cheaper fuel

On 9 October, US President Donald Trump wrote on Truth Social that Russia would immediately supply more than 300,000 tons of diesel, then 500,000 tons in November, and another million tons right after.

Moscow would later send the US up to 3 million more tons, depending on the state of Russia’s refineries, Trump added, framing the deal as a way to bring down energy prices.

Why the volumes fall short

Analysts say the amounts are too small to move prices much. Together, the first tranches would cover about a day and a half of US demand, while US diesel use alone runs near 16 million tons a month. Experts read the move as politics ahead of an election rather than a real shift in the market, pointing out that Trump cited volumes in tons, which look larger than the barrels traders track.

The deal drew fury in Kyiv, and President Volodymyr Zelenskyy called it a weak decision by strong partners. The EU is moving the other way, with ambassadors approving the bloc’s largest sanctions package against Russia’s war machine, due for final adoption on 12 October.