DAVOS, Switzerland — US Treasury Secretary Scott Bessent accused European nations of “the ultimate act of irony and stupidity” for purchasing refined petroleum products from India made with Russian crude while refusing to impose tariffs on New Delhi to protect a pending free trade agreement, according to an interview with Politico conducted Friday at the World Economic Forum.
The comments expose a contradiction in European policy: Brussels avoided sanctioning India’s energy ties with Moscow while simultaneously becoming an end consumer of Russian-origin oil products through Indian refineries. Bessent said Indian refinery purchases of Russian crude “collapsed” after Washington imposed 25% tariffs in August 2025, but European buyers continued acquiring the refined fuels those facilities produced from Russian oil. “Guess who was buying the refined products from the Indian refineries made from Russian oil,” Bessent said, according to reporting by The Indian Express. “The Europeans. They are financing the war against themselves.”
Europe Prioritized Trade Deal Over Sanctions
European allies “refused” to impose tariffs on India over Russian crude imports because they wanted to finalize a major free trade agreement with New Delhi, Bessent stated. India and the European Union have closed nearly 20 of 24 negotiating chapters and expect to conclude talks by January 27, creating what European Commission President Ursula von der Leyen called “the mother of all deals” covering 2 billion people and 25% of global GDP, according to NDTV reporting.
“I will also point out that our virtue signalling European allies refused to do it because they wanted to sign this big trade deal with India,” Bessent said.
The EU’s 18th sanctions package against Russia, adopted July 18, 2025, prohibits imports of petroleum products refined from Russian crude through third countries. Yet European nations continued purchasing from India until Indian refiners began cutting Russian crude volumes in December 2025.
Indian Crude Imports Shift After US Tariffs
Before Russia’s invasion of Ukraine, Russian oil accounted for 2-3% of India’s total imports, Bessent noted. That share surged to 18-19% after the invasion as Indian refiners capitalized on discounted Russian crude, earning “huge profits” from refining operations while European buyers purchased the finished products. December 2025 imports of Urals crude fell to 929,000 barrels per day, the lowest level since December 2022, according to Kpler data cited by Economic Times.
President Donald Trump imposed an additional 25% tariff on India in August 2025 specifically targeting energy ties with Russia, pushing total duties on many Indian goods to around 50%. Indian Oil, Nayara Energy, and Bharat Petroleum were the only refiners receiving Russian cargoes in the first half of January 2026. Reliance Industries, India’s largest Russian crude importer over the past year, did not lift any Russian cargo during this period and halted Russian oil imports entirely in January.
Bessent hinted at potential tariff relief, stating “there is a path to take them off” while emphasizing the 25% levies remain in place. He stopped short of announcing a timeline or confirming removal.
Russian Crude Finds New Buyers
India’s reduced demand increased availability of discounted Russian crude for China, helping cushion Beijing’s loss of Venezuelan oil after Washington moved against the OPEC producer and took control of millions of barrels of Venezuelan crude sales. The shift demonstrates how tariff pressure on one buyer can redirect supply chains rather than eliminate Russian export revenue.
Indian refiners are seeking alternative suppliers including Guyana and Saudi Arabia as Russian volumes shrink. OPEC’s share of Indian oil imports reached an 11-month high in December as refiners shifted sourcing amid sustained US pressure.
Trade negotiations between India and the US continue as Trump warned tariffs could increase further unless New Delhi curtails Russian purchases. India rejected Trump’s claim that Prime Minister Narendra Modi offered assurances to curb such purchases. The Treasury Secretary’s comments came days before the expected India-EU trade deal conclusion, adding diplomatic complexity to transatlantic coordination on Russia sanctions enforcement.
