US Treasury Chief Yellen Criticises EU’s Priorities on Ukraine Aid
US Treasury Secretary Janet Yellen has called the European Union’s decision to prioritise a trade deal with India over using frozen Russian assets to aid Ukraine “very disappointing” and “a mistake”.
Key Takeaways
- Janet Yellen urges EU to use profits from frozen Russian assets for Ukraine.
- Criticises EU for prioritising the long-stalled EU-India Free Trade Agreement.
- Comments highlight growing US-EU rift over response to Ukraine war.
“A Mistake”: Yellen’s Direct Criticism
Speaking in Washington, Yellen expressed clear frustration. “I think it’s very disappointing that the EU has chosen to prioritize the EU-India free trade agreement ahead of the Ukrainian people,” she told reporters. She emphasised the urgency, stating, “The Ukrainian people are suffering, and they need our help. The EU has the resources to help them, and it should do so.”
The Stalled EU-India FTA
The agreement Yellen referenced has been under negotiation since 2007. Talks have repeatedly stalled over key issues like tariffs and intellectual property rights, making its current prioritisation a point of contention for the US.
Diverging US-EU Approaches on Ukraine
Yellen’s remarks are expected to strain transatlantic relations further. The US has advocated for a more aggressive stance, including increased military aid and harsher sanctions on Russia. The EU, concerned about economic fallout and conflict escalation, has adopted a more cautious position. This fundamental difference in strategy is now playing out in debates over how to utilise frozen Russian state assets.
Last week, EU leaders agreed to use only the windfall profits from these frozen assets to buy arms for Ukraine, rejecting a broader US-backed plan to borrow against future profit streams for more substantial, immediate aid.
