New Delhi: US Treasury Secretary Scott Bessent has criticised the landmark India-EU free trade agreement finalised Tuesday, accusing the European Union of prioritising economic gains over its commitment to support Ukraine in the ongoing war with Russia.
In an interview Wednesday with CNBC, an American media outlet, he said the trade deal undermined the West’s efforts to isolate Russia economically and highlighted a “deep contradiction” in European policy.
“I find the Europeans very disappointing because the Europeans are on the frontlines of the Ukraine-Russia war. 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. 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 added.
In a response, Bessent later said the US hit back with 25% extra tariff on India, part of sanctions for buying cheap Russian crude, which brought the total tariff on India to 50%. But Europe skipped similar steps to protect the FTA negotiations.
“The Europeans were unwilling to join us, and it turns out because they wanted to do this trade deal. 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.
Bessent acknowledged Europe’s energy dependence as a factor, noting it craves “cheap energy” at a price, and implied that the US could access similar benefits but chooses not to.
His remarks have further exposed the widening rift in the western alliance over balancing anti-Russia sanctions with domestic economic pressures.
The EU’s stance is that keeping energy supplies secure and the economy steady is just as vital as supporting Ukraine. The India-EU FTA, the biggest in years, is expected to boost ties between Europe and India. But Bessent termed it a sign of Europe’s “controversial balancing act” in global politics, business deals and energy.
In the interview, he also alluded to a “rift” with Canada over a post-Davos call involving Prime Minister Mark Carney, without further details.
(Edited by Nida Fatima Siddiqui)
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