EU accuses US of PROFITING from Ukraine war by selling higher-priced gas and weaponry

EU accuses US of PROFITING from Ukraine war by selling higher-priced gas and weaponry

The EU has accused the United States of profiting from the Ukraine conflict by selling weapons and fuel at inflated costs.

Several high-ranking Bloc officials accused Joe Biden of profiting from the horrific Russian invasion by increasing the price of imports of essential goods.

One senior source told Politico that, nine months after the initial invasion, America stood to gain the most by the continuation of the conflict.

The official stated, “If you look at it realistically, the country that is benefiting the most from this war is the United States since they are selling more gas at greater prices and more weapons.”

In recent months, Europe has weaned itself off Russian energy and gas, turning instead to the United States for oil.

However, EU countries spend about four times as much for petrol as Americans do, and the United States are becoming incredibly competitive due to their cheaper energy.

New investments are intended to inject capital into the US petroleum sector, and some companies are even relocating across the Atlantic.

It has sent some European global leaders into a frenzy, with French President Emmanuel Macron recently stating that the United States’ treatment of allies is unfriendly.

In the meantime, European nations are experiencing an arms scarcity as a result of the massive shipments sent to Ukraine, and they are rushing to replenish their stocks throughout the winter.

The cost of providing Ukraine to the United States has risen to more than $19 billion after an additional $400 million was added this week.

It comes at an already tense time for the United States and a number of nations, as Europe deals with the aftermath of Biden’s green subsidies.

EU official: “The Inflation Reduction Act has changed everything.” Is Washington still one of our allies?

On Friday, tensions escalated when EU trade ministers convened and labeled the act “discriminatory” prior to its implementation in less than a month.

The almost $400 billion subsidy “system” proposed by the Inflation Reduction Act incentivizes Americans to purchase energy-efficient and domestically produced goods.

The IRA offers tax credits to firms and individuals who acquire “green” products, such as wind turbines and alternative-fuel automobiles.

However, the credits are mostly accessible for American-made products.

According to reports, the IRA caused Brussels to enter a state of ‘full-blown panic,’ with authorities fearful that IRA subsidies were undermining EU exports and jeopardizing European enterprises.

Recently, the nation established a task team to examine the impact of the IRA on European nations over the next few months and years.

On Friday, European trade ministers met in Brussels to address the IRA, but no firm solution was reached.

The Czech Republic’s minister, Jozef Sikela, recently stated that he hopes to reach a settlement before the December 1 meeting of EU trade ministers.

Sikela recently told the Financial Times, “What is crucial to us is that the United States is aware of our concerns, and the task group must work out a solution that is acceptable to all parties.”

Numerous times, U.S. officials have dismissed the concerns of European leaders.

EU officials reportedly asked Biden about rising gas prices during the G20 conference in Bali, but the American president “seemed uninformed of the matter,” according to a Politico source.

A representative for Biden’s National Security Council told the publication, “Putin’s invasion of Ukraine and energy war against Europe are the sole cause of the surge in gas prices in Europe.”

The representative also stated that the U.S. government is not to responsible for the high gas costs affecting Europeans’ wallets, but rather “private market decisions.”

The official stated that U.S. corporations have been transparent and dependable suppliers of natural gas to Europe.

As a result of an accident in June that shut down a plant involved in the trade, gasoline exports have also been restricted.

The NSC official also asserted that EU exporters of liquefied natural gas are to blame for Europe’s high gas costs.

The increase in global LNG supplies, led by the United States, aided European allies and partners in achieving encouraging storage levels ahead of this winter, and we will continue to work with the EU, its members, and other European nations to ensure adequate supplies are available for winter and beyond, according to an NSC spokesperson.

However, several European authorities claim they do not believe this argument.

Thierry Breton, European Commissioner for the Internal Market, recently remarked, “The United States sells us gas with a multiplier effect of four when it crosses the Atlantic.”

The nations are also concerned that the United States is exploiting its speedy and inexpensive energy practices to entice European enterprises to relocate to the United States.

Solvay, a significant international chemical business, announced this week that it would relocate to the United States for fresh investments, a statement that stunned many.

In June, Bloomberg reported that for the first time ever, the United States was exporting the majority of its natural gas to European nations.

In the first four months of the year, about three-quarters of liquefied gas from the United States was delivered to Europe, according to energy officials at the time. Additionally, they reported that shipments to the continent had increased compared to the same period last year.

As European nations sought to reduce their dependency on Russian oil, the Biden Administration committed early this year to increase gas exports to the continent.

According to the NSC source, this promise was contingent on American suppliers with ‘contract flexibility’ who were able to send more fuel to Europe, which was subsequently marked up by European corporations.

European nations, which are now reliant on the United States for their gas supply, are concerned about the effects of the $369 billion in green subsidies, given that they are already being squeezed by rising gas prices.

“The Inflation Reduction Act is really worrisome,” said Liesje Schreinemacher, the Dutch minister of trade. The potential economic impact on Europe is substantial.

David Kleimann of the Bruegel think tank in Brussels stated, “The Europeans are visibly irritated by the lack of prior knowledge and consultation.”

One transatlantic trade expert further asserted that the policies are “discriminatory” towards transoceanic partners and friends.

Croatian member of the European Parliament Tonino Picula stated, “The United States is following a domestic agenda that is unfortunately protectionist and discriminatory towards U.S. partners.”

The nations have urged the United States to consider its partners before continuing a policy that could harm their businesses and economy.

“Americans – our allies — make decisions that have an economic impact on us,” said Josep Borrell, the EU’s chief diplomat.

Borrell, a member of the Spanish Socialist Workers Party, has in the past garnered the attention of major media sources around the world over some of his ‘colorful’ words and provocative behavior.

Just one month ago, the diplomat was criticized for calling the world a “jungle” and Europe a “garden” that need protection. Many saw the man’s remarks as racist and xenophobic.

In 2018, Borrell was fined 30,000 Euros for insider trading and in 2020, he received harsh criticism after he snapped at whistleblowers who leaked a report about COVID-19 misinformation from the EU.

In contrast to the United States, China is a responsible and dependable partner, according to the ambassador.

The ongoing gas crisis between the U.S. and Europe has bolstered his claims, despite the fact that many others have not shared his identical viewpoints.

‘America needs to know that public opinion is evolving in many EU nations,’ the one EU officials said regarding the trade relationship with the U.S., as well as the prolonged war between Ukraine and Russia.

“We are truly at a historical crossroads,” they continued.

President Biden, through an NSC spokesperson, refuted the claims and pleas from the ally nations in a statement, saying: ‘While we understand that some trading partners have concerns with how the [electric vehicle] tax credit provisions in the IRA will operate in practice with respect to their producers, we are committed to continuing to work with them to better understand and do what we can to address their concerns.’

There is no zero-sum game here. The IRA will expand the pie for investments in sustainable energy, not divide it, according to the spokeswoman.

Some supplies have been depleted by the battle, and it could take years to replenish them.

The other nations are apprehensive that the United States may grasp the opportunity to sell additional weapons.

The Pentagon has previously indicated that it is developing a strategy to expedite the sale of military equipment and weapons.

An EU official stated that the United States is being greedy by making money on both weapons and gas, and that if gas prices were bargained down, hostilities could rise.

The EU official stated, “It is not good optics to create the appearance that your best ally is generating enormous profits off of your issues.”

All nations agreed, however, that the back-and-forth over gas prices, the green subsidy, and the conflict itself is just what Russian President Vladimir Putin desires.

Despite this agreement, several European nations face high inflation rates, recession, and possibly power outages as winter approaches.

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