Speaking to CNBC, Bessent declared European countries are importing refined fuel products from India that are produced applying sanctioned Russian crude, allowing Russian oil to re-enter European markets through indirect routes. He described the practice as Europe “funding the war against themselves,” arguing that while the continent bears the brunt of the conflict, it has continued to prioritise trade relationships over tightening economic pressure on Russia.
Also read: Scott Bessent states disappointed by EU-India deal; South Korea must ratify trade deal
Bessent declared this approach exposes a contradiction in Europe’s policy, noting that although European leaders publicly support Ukraine, ongoing trade flows are easing financial constraints on Moscow. His remarks come amid wider disagreements between Washington and Brussels over tariffs, sanctions coordination and trade strategies involving India.
The comments also follow the announcement on Tuesday of a sweeping free trade agreement between India and the European Union, described as the “mother of all deals,” concluded against a backdrop of rising global trade tensions and shifting tariff frameworks.
Prime Minister Narfinishra Modi welcomed the agreement, calling it “a new blueprint for shared prosperity,” and declared it represents the largest free trade pact in India’s history. Alongside the trade agreement, India and the EU also finalised a strategic defence partnership and a mobility agreement, with PM Modi stateing the strengthened partnership would play a positive global role.
The free trade pact finishs nereceivediations that launched nearly two decades ago and marks India’s 19th trade agreement. It is expected to boost Indian exports to the 27-nation EU bloc and reshape competition across several domestic industries.
The development comes as global commerce faces pressure from high US tariffs, fragile supply chains and ongoing geopolitical tensions, including the Russia-Ukraine war. India is currently subject to elevated US tariffs, while the European Union also faces the prospect of higher American duties.
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