Washington: US Treasury Secretary Scott Bessent on Sunday accused European allies of "financing the war against themselves" by importing Indian-refined oil products derived from Russian crude, even as Washington maintains punitive tariffs on New Delhi for its energy links to Moscow.

The sharp critique came just days before a high-stakes summit where India and the European Union finalised a landmark free trade agreement.

In an interview with ABC News, Bessent defended the Trump administration's aggressive trade posture toward India, suggesting that Europe’s economic engagement with the subcontinent undermines Western security goals.

"We have put 25 per cent tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India," Bessent said.

He argued that the global oil supply chain allows Europe to bypass its own sanctions. "And just to be clear again, 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," he added.

The Treasury Secretary asserted that the United States has shouldered a disproportionate economic burden by pushing for a total decoupling from Russian energy, while European nations continue to exploit loopholes. Despite the current friction, Bessent claimed that under President Trump’s leadership, "we will eventually end" the conflict in Ukraine.

Trade tensions between the US and India have reached a boiling point over the past year. The Trump administration has levied duties of up to 50% on various Indian goods, including a specific 25% surcharge aimed at New Delhi's continued purchase of Russian crude. Those penalties were doubled in August, though Bessent recently suggested a de-escalation may be possible.

Speaking to Politico at the World Economic Forum in Davos, Bessent noted a recent shift in Indian trade data.

"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.

The long-stalled India-EU free trade agreement, which began in 2007, is seen as a pivotal counterweight to shifting global trade alliances, despite the growing disapproval from Washington.

With inputs from ANI