US Treasury Secretary Scott Bessent strongly criticized the European Union for its newly finalized trade deal with India. Bessent stated that Europe is "financing the war against themselves" by purchasing refined Russian oil products from India. His comments came just before the official announcement of the India-EU free trade agreement on Tuesday, January 27, 2026.[tribuneindia+2]
Europe's Role in Russian Oil Trade
Bessent outlined a specific chain of events that he believes allows Russia to continue funding its conflict in Ukraine. He explained that Russian crude oil goes into India, where it is then refined into various products.These refined products are then purchased by European nations. "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," Bessent told ABC News on Sunday.He argued this indirect trade undermines European efforts to sanction Russia and support Ukraine.[tribuneindia+8]
The US Treasury Secretary emphasized that Washington has taken a much tougher stance. The Trump administration has imposed tariffs of 25 percent on India specifically for its purchases of Russian oil.Overall, the US has levied tariffs up to 50 percent on Indian goods.Bessent suggested that the United States has absorbed a larger share of the economic and political burden in the conflict.[tribuneindia+14]
India-EU Trade Agreement Finalized
The criticism from Bessent coincided with the finalization of a significant free trade agreement between India and the European Union.Negotiations for this deal began way back in 2007.The agreement aims to boost economic ties between the two regions.European Commission President Ursula von der Leyen, who was in India for the 77th Republic Day celebrations, called the EU-India FTA the "mother of all deals."The deal was declared finalized for legal scrubbing on Monday, January 26, with a formal announcement expected on Tuesday, January 27.[hindustantimes+16]
The EU's move to sign this deal with India, despite US tariffs on India over Russian oil, highlights growing friction in transatlantic trade and energy policy.Bessent's comments reflect Washington's frustration with what it sees as Europe's selective implementation of sanctions against Russia.[tribuneindia+4]
Shifting US Stance on Indian Oil
Bessent's latest remarks mark a noticeable shift from earlier statements. In an interview with Politico, he had indicated that Indian refinery purchases of Russian crude oil had "collapsed."At that time, Bessent suggested that if India's purchases of Russian oil continued to decline, there could be a "path to take them off" regarding the 25 percent tariffs.[tribuneindia+3]
However, his recent statements to ABC News returned to a more critical tone, directly linking Europe's trade with India to the indirect financing of Russia's war.This highlights an ongoing debate within the Trump administration and among allies regarding the effectiveness and consistency of sanctions against Russia.[hindustantimes+4]
Geopolitical Implications and Future Steps
The US Treasury Secretary maintained that under President Donald Trump's leadership, the Russia-Ukraine war "will eventually end."He also noted that President Trump has worked to negotiate a settlement for the conflict.[tribuneindia+9]
India has maintained its long-standing ties with Russia, avoiding condemnation of the 2022 invasion of Ukraine.India has also expanded its economic engagement with Moscow, particularly through increased energy imports.This stance has created friction in the EU-India relationship, even as both blocs seek to deepen strategic partnerships.The EU itself has imposed multiple rounds of sanctions on Russia's oil and energy sector.More recently, the bloc has targeted entities in third countries, including India and China, that continue to buy Russian oil.[washingtonpost+6]
The US continues to push for decoupling from Russian energy.This trade dispute underscores the complex global energy market and the differing approaches major powers take to geopolitical conflicts. The US and European nations remain at odds over how best to manage economic ties with countries that continue to engage with Russia on energy.[tribuneindia]
