US Treasury Secretary Scott Bessent Slams EU-India Trade Pact as "Disappointing" Over Ukraine Policy

In a sharply worded critique, US Treasury Secretary Scott Bessent has accused European leaders of hypocrisy following the signing of a landmark EU-India Free Trade Agreement (FTA). Bessent argues that by deepening trade ties with India—a major buyer of Russian crude—Europe is indirectly financing the Russian war effort in Ukraine. He highlighted a "moral and strategic trade-off" where Europe prioritizes cheap energy and trade deals over the geopolitical imperative of ending the conflict. These remarks expose a deepening rift in the Western alliance regarding the enforcement of Russian sanctions and the management of global energy security.

Geopolitical Context: The EU-India Balancing Act

The signing of the EU-India pact is one of the most significant trade events of the mid-2020s. However, it sits at the center of a complex geopolitical triangle:

• The US Position: Washington has taken a harder line, using tariffs to pressure neutral nations like India to distance themselves from Russian energy.
• The European Position: Facing high domestic energy costs and industrial stagnation, the EU has prioritized economic stability and diversified trade partners to reduce reliance on both Russia and, to an extent, the US.
• The Indian Position: India has consistently maintained that its energy purchases are driven by its own national interest and the need to provide affordable fuel to its 1.4 billion citizens.

Fact-Checking & Observations (2026)

• Mark Carney Reference: The text mentions Mark Carney as the Prime Minister of Canada. As of early 2026, this reflects a significant shift in Canadian politics (succeeding Justin Trudeau), which explains the "rift" mentioned between Washington and Ottawa.
• The "Refined Oil" Loophole: Bessent’s claim about Europe buying refined Russian oil from India is a documented economic reality known as the "laundering" of Russian oil, which has been a point of contention for several years.
• US-EU Friction: These comments signal a move away from the "united front" seen in 2022-2023, as domestic economic pressures in the US and EU lead to more protectionist and divergent foreign policies.

Impact on Global Markets

Trade Tensions: Bessent’s remarks may lead to increased scrutiny of Indian exports to Europe.

• Strategic Autonomy: The EU's decision to proceed with the deal despite US pressure underscores Europe's push for "strategic autonomy" in trade.