Trump administration targets Russian oil-linked trade
The United States has accused Europe of indirectly financing the Russia-Ukraine war through its trade ties with India, following the conclusion of the long-pending India–European Union free trade agreement.
US Treasury Secretary Scott Bessent said Europe was “funding a war against itself” by buying refined petroleum products from India that originate from Russian crude oil. His remarks come days after the EU and India wrapped up negotiations on what European leaders have called the “mother of all trade deals”.
Bessent’s comments underscore growing transatlantic friction over energy policy and sanctions enforcement, even as Washington has imposed steep tariffs on Indian imports linked to Russian oil purchases.
‘An imbalance in sacrifice,’ says US
Speaking to ABC News, Bessent argued that while the US has made significant economic sacrifices to weaken Moscow’s energy revenues, Europe continues to benefit from loopholes in global oil trade flows.
He pointed out that although European nations have reduced direct energy imports from Russia, they continue to purchase refined oil products from India, where Russian crude is processed.
“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,” Bessent said.
“Russian oil goes into India, refined products come out, and the Europeans buy the refined products. They are financing the war against themselves,” he added.
The Trump administration has imposed tariffs of up to 50 per cent on Indian goods, including a 25 per cent penalty linked specifically to India’s purchase of Russian crude.
India-EU trade deal draws US criticism
Bessent’s remarks coincided with India and the European Union finalising negotiations on their comprehensive free trade agreement, which is expected to be formally announced on Tuesday.
The negotiations, which began in 2007, were revived amid global trade disruptions triggered by US tariff policies. European Commission President Ursula von der Leyen, currently on an official visit to India, has described the agreement as the “mother of all trade deals”.
Von der Leyen attended India’s 77th Republic Day celebrations in New Delhi as chief guest, signalling a renewed push for deeper economic and strategic cooperation between India and the EU.
Trump administration vows to end Ukraine war
Bessent said President Donald Trump has made greater sacrifices than America’s allies in efforts to bring the Russia-Ukraine conflict to an end, arguing that US policy has been more consistent in targeting Moscow’s energy revenues.
Under Trump’s leadership, he claimed, the United States would eventually succeed in ending the war.
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