The fallout from Trump's Russia energy moves

The fallout from Trump's Russia energy moves

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45 mins ago - Energy & Climate

The fallout from Trump's Russia energy moves

* Ben Geman

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!Illustration of an oil drum in Russian flag colors being held by a globe stand.

*Illustration: Megan Robinson/Axios*

President Trump's moves to avoid new penalties on Russian energy sent shockwaves through Washington, sparking diplomatic tensions and political turmoil.

**Why it matters:** Trump's push to lower energy prices ahead of the midterms could provide Russia an economic lifeline and is exposing divisions within his own party.

* Oil, gas and petroleum product exports help finance Russia's war on Ukraine.

**Catch up quick:** Late Friday, Trump waived new sanctions against Russia and tariffs on top buyers of Russian energy that would have taken effect under the bipartisan Graham Act he signed last month.

* That came just days after the administration waived certain sanctions as part of a deal aimed at enabling higher exports of Russian diesel after high prices have become a political millstone for Republicans.

**Here's what's on our radar:**

**A new rationale.** Energy Secretary Chris Wright, in CNN and ABC appearances yesterday, called the diesel deal a "carrot" to get Russia to ease its assault on Ukraine.

* It's an "incentive to Russia, that if they can reduce the conflict with Ukraine, they can get an energy ceasefire or reduce the conflict such that they have diesel to export, we'll allow it to flow to world markets," Wright told ABC's "This Week."
* Ukrainian drone strikes have lowered Russia's refining capacity. Trump, in a Truth Social post yesterday, also cast his recent decisions as a way to get a peace deal with Russia.

**A new clock.** Secretary of State Marco Rubio told reporters Saturday that Trump wants to take 60 days to review implementing the Graham Act in order to gauge its impact on the global and U.S. economies.

**A deteriorating relationship.** Ukrainian President Volodymyr Zelensky has sharply and publicly criticized both the diesel deal and Trump's decision to waive, for now, the Graham Act penalties.

* Trump's post, meanwhile, bashed Zelensky for hitting Russian refineries, "knowing that these attacks are seriously hurting the world diesel markets, including those in the United States."

**Republican rifts.** Many GOP lawmakers and candidates, to varying degrees, have joined Democrats in criticizing Trump's Friday night sanctions waivers and the diesel deal days earlier.

* Sen. Darline Graham (R-S.C.) told the AP that she disagrees with Trump's decision not to implement, for now, the bipartisan law named after her late brother, Sen. Lindsey Graham (R-S.C.).
* She's running for a full term after being appointed to replace her brother. Former Rep. Mike Rogers — the GOP candidate in Michigan's tight Senate race — also expressed concern with the decision but avoided directly criticizing Trump on CNN yesterday.
* Other Republicans were far harsher, including retiring Sen. Thom Tillis (R-N.C.), who called Friday night's move "beyond irresponsible."

**Lame duck rumblings.** "A growing chorus of House Republicans is warning President Trump that they're ready to block additional Pentagon funding unless the administration gets tougher on Russia," The Hill reports.

**What we're watching:** With the midterms just weeks away, more Republicans are openly breaking with Trump.

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