US Treasury Chief Accuses Europe of Funding War Via India Oil

The United States on Monday escalated its criticism of India’s energy trade with Russia and the European Union’s growing economic engagement with New Delhi, with US Treasury Secretary Scott Bessent accusing European countries of indirectly financing the Russia–Ukraine war through refined oil products imported from India. His remarks came just as India and the European Union announced the conclusion of negotiations on a long-awaited Free Trade Agreement (FTA), a move widely seen as a counterweight to President Donald Trump’s tariff-heavy trade policy.

Speaking in an interview in the US, Bessent said Washington had imposed steep tariffs on India for purchasing Russian crude oil, only to see Europe move ahead with a trade deal with New Delhi. “We have put 25 per cent tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India,” he said. Although the India–EU agreement has not yet been formally signed, it was declared “finalised for legal scrubbing” in New Delhi on Monday and is expected to be officially announced on January 27.

Bessent argued that European countries were effectively undermining their own position on Ukraine by buying refined petroleum products from India that are processed using Russian crude. “Just to be clear again, 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,” he said. He added that under President Trump’s leadership, the US would “eventually end” the Russia–Ukraine conflict while insisting that Washington had made “much bigger sacrifices” than its European allies.

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The Trump administration has imposed punitive tariffs on several countries, including India, with duties on Indian goods rising to 50 per cent, half of which Washington has explicitly linked to New Delhi’s continued energy trade with Moscow. India has defended its position by pointing to energy security concerns and global market realities, while maintaining that its oil purchases comply with international regulations.

Despite US criticism, the India–EU trade deal has gained momentum, with European Commission President Ursula von der Leyen, currently in India and a chief guest at the 77th Republic Day celebrations, calling the agreement the “mother of all deals”. Negotiations for the pact began in 2007 and are expected to significantly expand trade and investment ties between the two sides at a time of growing uncertainty in global commerce due to US tariffs and protectionist measures.

The broader fallout of Washington’s trade stance is also prompting other countries to recalibrate their economic partnerships. Canada, facing the threat of higher US tariffs, has begun pivoting towards India as a strategic and economic partner, with talks underway on a Comprehensive Economic Partnership Agreement aimed at reaching $50 billion in bilateral trade by 2030. Analysts say these shifts underline a changing global trade landscape in which countries increasingly seek alternatives to US markets amid rising tariff pressures and geopolitical tensions.

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