The United States has accused Europe of indirectly financing the Russia-Ukraine war through its expanding trade ties with India, following the conclusion of a landmark free trade agreement between New Delhi and the European Union.
US Treasury Secretary Scott Bessent said Europe may have reduced its direct energy imports from Russia, but continues to purchase refined oil products originating from Russian crude processed in India. This, he said, undermines Western efforts to weaken Moscow’s energy revenues.
Bessent’s remarks came as India and the EU finalised negotiations on a long-pending free trade agreement, expected to be formally announced on Tuesday.
European Commission President Ursula von der Leyen has described the pact as the “mother of all trade deals.”
Speaking to ABC News on Sunday, Bessent said that Washington has taken stronger steps to disrupt Russia’s energy trade, including imposing steep tariffs on countries continuing to buy Russian oil.
“We have put 25 per cent tariffs on India for buying Russian oil,” Bessent said. “Guess what happened last week? The Europeans signed a trade deal with India.”
“Just to be clear,” he added, “the Russian oil goes into India, the refined products come out, and the Europeans buy the refined products. They are financing the war against themselves.”
The Trump administration has imposed tariffs of up to 50 per cent on Indian goods, including penalties linked to New Delhi’s continued purchases of Russian oil.
Bessent said the US has made greater economic sacrifices than its European partners while working to bring the Russia-Ukraine conflict to an end.
Under President Donald Trump’s leadership, Bessent said, the United States would “eventually end” the war.
The EU-India free trade agreement, negotiations for which began in 2007, aims to deepen economic ties between the two regions at a time of growing global trade disruptions, partly driven by US tariff policies.
European Commission President Ursula von der Leyen is currently in India and attended the 77th Republic Day celebrations in New Delhi as chief guest.