US Treasury Secretary Scott Bessent has sharply criticised Europe’s newly signed free trade agreement with India, accusing European leaders of undermining their own stance on the Ukraine war by prioritising economic interests and energy security over geopolitical consistency.
In a wide-ranging interview with US media, Bessent reacted strongly to the landmark EU-India trade pact, arguing that while nations are free to pursue their own economic priorities, Europe’s choices reveal what he described as a “deep contradiction” in its approach to the Russia-Ukraine conflict.
“Europe and India signing this massive trade deal—does that threaten America? Again, they should do what’s best for themselves,” Bessent said. “But I find the Europeans very disappointing because they are on the front line of the Ukraine-Russia war.”
‘Europe Funding the War It Condemns,’ Says Bessent
Bessent accused European nations of indirectly financing the very conflict they publicly denounce. After Russia’s invasion of Ukraine and the imposition of Western sanctions, India significantly increased its imports of discounted Russian crude oil. According to Bessent, Europe then became a major buyer of the refined petroleum products produced from that oil.
“India started buying sanctioned Russian oil, and guess who was buying the refined products? The Europeans,” he said. “So the Europeans have been funding the war against themselves—something you couldn’t have made up.”
US Imposed Tariffs on India, Europe Stayed Silent
The US Treasury Secretary revealed that Washington responded to India’s purchases of Russian oil by imposing a 25 per cent tariff. However, Europe chose not to follow suit, a decision Bessent suggested was influenced by ongoing trade negotiations with India.
“The Europeans were unwilling to join us, and it turns out because they wanted to do this trade deal,” he said.
Bessent went further, delivering one of his strongest rebukes yet of European leaders’ public rhetoric on Ukraine.
“Every time you hear a European talk about the importance of the Ukrainian people, remember that they put trade ahead of the Ukrainian people,” he said. “Trade—European trade—more important than ending the war in Ukraine.”
Energy Dependence at the Heart of Europe’s Dilemma
Acknowledging Europe’s heavy reliance on energy imports, Bessent framed the issue as a moral and strategic trade-off. He said Europe’s desire for cheap energy had influenced its decisions, even if it meant indirectly benefiting Russia.
“They need energy, I guess, which is part of their issue. At a price, they want cheap energy,” Bessent remarked, adding that the US could also benefit from cheaper fuel “if we were willing to buy sanctioned Russian oil.”
Rifts Within the Western Alliance
Bessent’s remarks underline growing strains within the Western alliance over how strictly to enforce economic pressure on Russia while balancing domestic economic stability. European officials have repeatedly argued that safeguarding energy security and economic growth is essential, even as they maintain political and military support for Ukraine.
The Treasury Secretary also briefly mentioned a recent “rift” with Canada, referring to differing versions from Washington and Canadian Prime Minister Mark Carney regarding a phone call after the Davos meetings, though he declined to provide further details.
EU-India Trade Deal Under Global Scrutiny
The EU-India free trade agreement, one of the largest such pacts signed in recent years, is expected to significantly deepen economic ties between New Delhi and Brussels. However, Bessent’s comments signal that in Washington, the deal is increasingly being viewed as a symbol of Europe’s complicated—and controversial—balancing act between geopolitics, trade interests, and energy security.