US Treasury Secretary Scott Bessent criticises Europe’s EU-India trade deal, claiming it prioritises trade over Ukraine policy and energy security.

US Treasury Secretary Scott Bessent has criticised Europe’s newly signed free trade agreement with India, claiming that European leaders are prioritising economic interests over geopolitical concerns and energy security, thereby undermining their own position on the Ukraine war.

In an extensive interview with US media, Bessent said that while countries have the right to pursue their economic agendas, Europe’s decision exposes a “deep contradiction” in its approach to the Ukraine conflict.

“Europe and India signing this major trade deal—does it threaten America? They should do what’s best for themselves,” Bessent said. “But I find Europe’s actions very disappointing, given their frontline role in the Ukraine-Russia war.”

He accused European countries of indirectly funding the very conflict they publicly condemn. After Russia’s invasion of Ukraine and the imposition of Western sanctions, India increased its purchases of discounted Russian crude oil, and European nations then became major buyers of the refined products from that oil.

“India bought sanctioned Russian oil, and who bought the refined products? The Europeans,” Bessent said. “Essentially, Europe has been financing a war against itself—something that’s almost unbelievable.”

Bessent added that the US responded by imposing a 25% tariff on India for purchasing Russian oil, but Europe refused to adopt similar measures, reportedly to avoid jeopardising the EU-India trade negotiations.

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“Europe didn’t join us because they wanted to push this trade deal through,” he said. “Whenever a European talks about supporting Ukraine, remember—they put trade ahead of the Ukrainian people. European trade has been more important than ending the war in Ukraine.”

Acknowledging Europe’s dependence on energy imports, Bessent described the situation as a moral and strategic dilemma. “They need energy, and they want it cheap,” he said, noting that the US could also access cheaper energy if willing to buy sanctioned Russian oil.

His comments highlight tensions within the Western alliance over how strictly to enforce sanctions on Russia while balancing domestic economic and political priorities. European officials argue that maintaining energy security and economic stability is essential, even as they continue to support Ukraine.

Bessent briefly mentioned relations with Canada, noting a recent “rift” and differing accounts between Washington and Prime Minister Mark Carney after the Davos meetings, though he did not provide further details.

The EU-India trade agreement, one of the largest in recent years, is expected to significantly strengthen economic ties. However, Bessent’s remarks indicate that Washington views the deal as a reflection of Europe’s complex balancing act between geopolitics, trade, and energy security.