US Treasury Secretary Scott Bessent has sharply criticised Europe for finalising a landmark free trade agreement (FTA) with India, accusing Brussels of prioritising commercial gains over support for Ukraine amid its ongoing war with Russia.

Speaking to CNBC on Wednesday, Bessent expressed profound disappointment in Europe's stance. He argued that the continent's leaders had placed trade interests ahead of their professed solidarity with the Ukrainian people, despite the conflict's severity.

The remarks followed the European Union's announcement on Tuesday of the long-awaited EU-India FTA. This pact aims to eliminate or reduce tariffs on 96.6 per cent of traded goods by value, potentially doubling EU exports to India by 2032 and saving European firms around €4 billion in duties annually.

Bessent linked the deal directly to Europe's refusal last year to join Washington in imposing higher tariffs on India. "The Europeans were unwilling to join us, and it turns out, because they wanted to do this trade deal," he stated bluntly.

He further accused European nations of hypocrisy on Ukraine. "Every time you hear a European talk about the importance of the Ukrainian people, remember that they put trade ahead of the Ukrainian people," Bessent remarked.

At the heart of his critique lies India's role in global energy flows post-Russia's 2022 invasion of Ukraine. Russia continues to export crude oil to India, which refines it into products like diesel and jet fuel that Europe then purchases in large volumes.

This circuit, Bessent contended, indirectly funds Moscow's war machine. "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 said.

The US has responded aggressively to this dynamic. Last year, the Trump administration imposed 25 per cent tariffs on India specifically for its purchases of Russian oil, aiming to curb such trade and pressure New Delhi.

Yet Europe pressed ahead with the FTA regardless. Bessent highlighted the timing: "We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India."

He reiterated these points in an earlier ABC News interview last week, ahead of the FTA's formal conclusion, underscoring Washington's frustration with perceived European inconsistency.

Bessent also contrasted US and European efforts to resolve the Russia-Ukraine war. He claimed the Trump administration had applied far greater pressure on Moscow and made "much bigger sacrifices" than its European allies.

"They should do what's best for themselves, but I will tell you, I find the Europeans very disappointing," Bessent concluded in his CNBC appearance, signalling deepening transatlantic rifts over trade and security priorities.

The EU-India FTA emerges against a backdrop of rising global trade tensions. Europe seeks to diversify supply chains and reduce reliance on both Russia and the US, while India positions itself as a key manufacturing hub under its 'Make in India' initiative.

For India, the deal opens vast European markets for textiles, pharmaceuticals, and auto components, while granting EU firms better access to India's booming services sector and agricultural goods.

Critics in Washington view it as undermining US-led sanctions regimes. India's oil imports from Russia surged after Western sanctions in 2022, reaching record highs and making New Delhi Moscow's top buyer.

Europe, facing its own energy crunch, has bought discounted Russian refined products from India to bypass direct crude purchases—estimated at over 1 million barrels per day in peak periods.

This has drawn repeated US rebukes, with Bessent's comments amplifying a narrative of European free-riding on American security guarantees.

The FTA's conclusion caps over a decade of negotiations, accelerated by post-COVID supply chain shifts and the Ukraine crisis. It excludes sensitive sectors like dairy and cars but covers investment protection and sustainability clauses.

Bessent's intervention risks complicating US-India ties, already strained by tariffs, even as Washington courts New Delhi against China. India has defended its Russian oil buys as pragmatic, citing discounted prices that shield its economy.

European leaders have remained silent on Bessent's barbs so far, focusing instead on the FTA's economic upside amid sluggish growth. EU trade chief Valdis Dombrovskis hailed it as a "game-changer" for bilateral ties.

As the Russia-Ukraine war grinds into its fourth year, such trade spats highlight fracturing Western unity. Bessent's rhetoric may foreshadow tougher US positions on allies diverging from its sanctions playbook.

Based On ANI Report