Europe Funding War Against Itself With India-EU Deal: Trump's Close Aide

US Treasury Secretary Scott Bessent, a key figure in the US President Donald Trump administration, has launched a scathing attack against EU free trade agreement with India, accusing Europe of hypocrisy and indirectly financing the Russia-Ukraine conflict through its trade ties with New Delhi.

The long-awaited India-European Union Free Trade Agreement (FTA) is set to be formalized today. While leaders in New Delhi and Brussels are hailing the pact as a "historic milestone," the announcement has been met with a stinging rebuke from the United States.

The friction stems from India's role as a major refiner of Russian crude. Since the onset of the Ukraine war, India has imported discounted Russian oil, refined it, and exported the products-such as diesel and jet fuel-to global markets, including Europe.

Speaking to ABC News, Bessent didn't mince words. He argued that the EU is essentially undermining Western security by buying these refined products.

"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 remarked.

The Treasury Secretary used the opportunity to defend the Trump administration's aggressive trade stance. Washington has already slapped 25% tariffs on Indian goods specifically as a penalty for New Delhi's energy trade with Moscow. Bessent framed the new India-EU deal as a "mismatch in burden-sharing," suggesting that while the US takes the economic hit to pressure Russia, Europe is exploiting loopholes.

Despite the shadow cast by Washington, the atmosphere in New Delhi is celebratory. The announcement coincides with the state visit of European Commission President Ursula von der Leyen and European Council President António Costa, who attended India's 77th Republic Day celebrations as Chief Guests.

The deal, which has been under negotiation for a staggering 18 years, is being called the "Mother of All Deals" by both Indian Commerce Minister Piyush Goyal and President von der Leyen.

On the other hand, Bessent had recently stated that India has reduced purchasing Russian oil.

Speaking to Politico, he said, "Indian purchases by their refineries of Russian oil have collapsed. So that is a success. The tariffs are still on, 25 per cent tariffs for Russian oil are still on. I would imagine there is a path to take them off," Bessent said.

According to a report in Reuters, India's oil imports from Russia fell to its lowest in two years.