The United States has sharply criticised the newly announced India-European Union Free Trade Agreement (FTA), with US Treasury Secretary Scott Bessent accusing European nations of indirectly financing Russia’s war in Ukraine.
Speaking to CNBC, Bessent said European countries were importing refined fuel products from India that are made using sanctioned Russian crude oil, effectively allowing Russian energy to re-enter European markets through indirect channels.
“They should do what’s best for themselves, but I find the Europeans very disappointing,” Bessent said. He argued that while Europe bears much of the economic and security impact of the Ukraine conflict, it has continued to prioritise trade ties over tightening economic pressure on Moscow.
Earlier, in an interview with ABC News, Bessent had remarked that the EU was “financing the war against themselves” by signing a trade deal with India.
“The US has made much bigger sacrifices than Europeans have. We imposed 25 per cent tariffs on India for buying Russian oil. And then, just last week, the Europeans signed a trade deal with India,” he said.
India and the European Union announced the ambitious free trade agreement on Tuesday, describing it as the “mother of all deals,” amid heightened tariff tensions between New Delhi and Washington. The pact spans a wide range of areas, including trade in goods and services, customs and trade facilitation, and emerging sectors such as digital trade and small and medium enterprises (SMEs).
The agreement concludes negotiations that began nearly two decades ago and marks India’s 19th trade pact. It is expected to significantly boost Indian exports to the 27-nation EU bloc and reshape competition across several domestic industries.
For India, the deal is also seen as a major relief at a time when its economy has been under pressure following the market disruption triggered by the 50 per cent tariff imposed by US President Donald Trump last year.
