Morning Brief, Saturday 17 October

Donald Trump signed an executive order on Friday night pausing new sanctions and tariffs aimed at Russia's economy. Congress passed the law in September, and Donald Trump signed it that month, but the statute included a waiver clause that let him tell Congress the pause served the national interest. The measures targeted Russian officials, oligarchs and financial institutions, and gave the president extra tariff authority against countries that keep trading with Russia.

The reporting tied the move to diesel prices. The sanctions and tariffs would have complicated Donald Trump's effort to cut fuel costs before the 3 November midterm elections, after the United States agreed a week earlier to buy diesel from Russia. The waiver therefore gives Vladimir Putin a breathing space at a time when Washington is turning to Moscow for help on energy prices, even as Ukraine warns that sanctions relief would weaken pressure on Russia.

Congress pushed back within hours. Gregory Meeks, the top Democrat on the House Foreign Affairs Committee, introduced a bill to reverse the Treasury licence that allows Russian diesel sales and imports into the United States through April 2027. Sixteen Democrats joined him, and Don Bacon, a Republican critic of Donald Trump, also backed the measure. The bill would also stop the U.S. International Development Finance Corporation from investing in Russian energy.

The sources gave no vote date for the Meeks bill and did not say how long the sanctions pause will last. Treasury had not issued a reported response to the bill.

Ursula von der Leyen told leaders in Brussels that Ukraine's funding is covered for 2026, but that 2027 still shows a €70bn gap. She set the shortfall against a €90bn allocation planned before the course of the war could be known, and said partners should finance about a third of the gap. The statement turns the next budget fight into a dated number rather than a general promise.

Friedrich Merz said the 27 leaders will meet again on 4 February 2027 in Germany to review progress on competitiveness and the single market. He also said Europe still has room to limit visas for Russian citizens, including private visits and business travel, and warned that Russia must know Europe will respond to the forced administration of European companies.

Swedish prime minister Ulf Kristersson said nothing had changed on using immobilised Russian assets for Ukraine. He said those funds are preserved and that short-term support should come from other sources. That leaves governments with two linked choices: how to keep Ukraine funded next year, and how far to go in using Russian state assets without splitting the bloc.

Italy also reached an agreement with the European Commission on its energy bills decree under the Middle East State Aid Framework. The Commission said the measure is temporary, compensates only the rise in gas costs, excludes ETS costs and should be notified quickly by Rome.