President Donald Trump has reportedly accused European leaders of indirectly funding the war in Ukraine by purchasing Russian oil. He has urged them to cut off Russia and pressurize China to do the same.
Europe Still Funding Russia's War Through Fuel Imports, Says Trump
Trump, during a virtual meeting on Ukraine, pointed out that European countries are inadvertently funding the ongoing war by purchasing Russian oil, as reported by Axios. He emphasized that the EU must increase economic pressure on China for funding Russia’s war efforts.
The president outlined his position during a call with Ukrainian President Volodymyr Zelenskyy and several European leaders, stressing that if Russian President Vladimir Putin continues to refuse peace talks, additional sanctions will be imposed in coordination with the U.S.
Since the war began, European nations have sharply cut back on Russian oil and gas imports. Still, Trump noted that Russia earned €1.1 billion ($1.29 billion) from fuel sales to the EU in a single year.
Russia, China Strengthen Energy Ties, India Faces US Ire
Trump’s comments come at a time when Russia and China are strengthening their ties to challenge the influence of the EU and the U.S. The two nations recently signed an agreement to build the Power of Siberia 2, a gas pipeline that will supply 50 billion bcm/year of natural gas to China.
The U.S. has imposed substantial tariffs on India as a penalty for its continued purchases of Russian oil, accusing the nation of profiting from the Ukraine conflict while disregarding casualties.
However, Trump has not yet followed through on threats to tariff the other major customer, China. Treasury Secretary Scott Bessent explained the differential treatment in tariffs on India and China, despite both countries buying Russian oil. He pointed fingers at India for allegedly profiting from the import of low-priced Russian oil, a practice he dubbed "Indian arbitrage," which he called "unacceptable.”
Price Action: Longer-term investors can seek growth in energy equity ETFs. On a year-to-date basis, the Energy Select Sector SPDR Fund (NYSE:XLE) and iShares U.S. Energy ETF (NYSE:IYE) climbed 2.79% and 2.84%, respectively, as per data from Benzinga Pro
READ NEXT:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
