US Treasury Secretary Scott Bessent has slammed European nations ahead of the announcement of a historic free trade agreement between India and the European Union (EU), saying the Europeans were indirectly financing Russia’s war in Ukraine.
Speaking to ABC news over the weekend, Bessent said that while the US imposed 25 per cent tariffs on India for buying Russian oil, the Europeans signed a trade deal.
“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.
He further stated that European nations buy refined energy products from India that are made using Russian oil.
“And 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 added.
Bessent claimed that Washington has been absorbing larger share of economic and political burden and that under the leadership of President Donald Trump, the US will end the war in Ukraine.
His remarks came ahead of the announcement of “mother of all” trade deals between India and the European Union. The negotiations have been finalised and the announcement will likely be made later today.
The deal will be formalised during the 16th India-EU Summit today. PM Narendra Modi will hold restricted and delegation-level discussions with European Commission President Ursula von der Leyen and European Council President Antonio Costa.
The free trade agreement between India and the EU, first initiated in 2007, is expected to anchor a broader economic and strategic partnership as global trade dynamics shift.
EU signs law to ban Russian gas
Meanwhile, the European Union have formally adopted the regulation on phasing out Russian imports of both pipeline gas and liquefied natural gas (LNG) into the EU.
As per the regulation, importing Russian pipeline gas and LNG into the EU will be prohibited.
“The ban will start to apply six weeks after the regulation enters into force. Existing contracts will have a transition period. This stepwise approach will limit the impact on prices and markets. A full ban will take effect for LNG imports from the beginning of 2027 and for pipeline gas imports from autumn 2027”, the EU said in a statement.
Non-compliance with the new rules may result in maximum penalties of at least EUR 2,5 million for individuals and at least EUR 40 million for companies, at least 3,5 % the company’s total worldwide annual turnover, or 300 % of the estimated transaction turnover, the statement added.