US Treasury Secretary Scott Bessent has criticised Europe’s newly signed free trade agreement with India, accusing European leaders of undermining their position on the Ukraine war by prioritising economic interests over geopolitics and energy security.
Speaking in a wide-ranging interview with US media, Bessent said the landmark EU-India trade pact exposed what he described as a deep contradiction in Europe’s approach to the conflict with Russia. He said countries were free to pursue their own economic interests but argued that Europe’s choices were disappointing given its proximity to the war.
Bessent accused European countries of indirectly financing the conflict they publicly oppose. After Russia invaded Ukraine and Western sanctions were imposed, India sharply increased purchases of discounted Russian crude oil. Bessent said Europe then became a major buyer of refined products made from that oil.
According to Bessent, the United States responded by imposing a 25 percent tariff on India for purchasing Russian oil, while Europe declined to join Washington in similar measures. He suggested this reluctance was linked to Europe’s desire to keep trade negotiations with India on track.
He also pointed to Europe’s heavy dependence on imported energy, saying European leaders were willing to pay the price for cheaper energy even as they stressed support for Ukraine. He added that the US could also benefit from cheaper energy if it were willing to buy sanctioned Russian oil.
Bessent briefly mentioned a recent rift with Canada, noting differing accounts between Washington and Prime Minister Mark Carney following a call after the Davos meetings.
The EU-India trade pact is one of the largest agreements in years and is expected to deepen economic ties, but Bessent’s remarks hint at growing tensions within the Western alliance over how to balance trade, energy security, and pressure on Russia.