Written by 2:07 pm Europe Economy

ukraine: European officials accuse USA of making profits from Ukraine war

European officials are accusing the USA of making profits from the Ukraine war in the energy and defence sectors while Europe suffers.

Top European officials are reportedly upset with the USA administration and alleged that the USA is making a fortune from the war, even as the EU suffers, according to a report in a leading Western media.

“The fact is, if you look at it soberly, the country that is most profiting from this war is the U.S. because they are selling more gas and at higher prices, and because they are selling more weapons,” one senior official recently told POLITICO, a leading media house from USA and Europe.

“We are really at a historic juncture,” the senior EU official said, arguing that the double hit of trade disruption from U.S. subsidies and high energy prices risks turning public opinion against both the war effort and the transatlantic alliance. “America needs to realize that public opinion is shifting in many EU countries.”
Another top official, the EU’s chief diplomat Josep Borrell, called on Washington to respond to European concerns. “Americans — our friends — take decisions which have an economic impact on us,” he said in an interview with POLITICO.

The USA has dismissed Europe’s views. “The rise in gas prices in Europe is caused by Putin’s invasion of Ukraine and Putin‘s energy war against Europe, period,” a spokesperson for Biden’s National Security Council said, reported Politico.

EU countries are turning to gas from the U.S. instead — but the price Europeans pay is almost four times as high as the same fuel costs in America. Then there’s the likely surge in orders for American-made military kit as European armies run short after sending weapons to Ukraine, according to Politico.

French President Emmanuel Macron had said high U.S. gas prices were not “friendly” and Germany’s economy minister had called on Washington to show more “solidarity” and help reduce energy costs.

EU Ministers and diplomats are reportedly frustrated at the way Biden administration is ignoring the impact of its domestic economic policies on European allies.

“The Inflation Reduction Act is very worrying,” said Dutch Trade Minister Liesje Schreinemacher, reported the Politico. “The potential impact on the European economy is very big.”

“The U.S. is following a domestic agenda, which is regrettably protectionist and discriminates against U.S. allies,” said Tonino Picula, the European Parliament’s lead person on the transatlantic relationship, reported The Politico.

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

There is also an allegation about the profits for the American defence sector.

The U.S. has by far been the largest provider of military aid to Ukraine, supplying more than $15.2 billion in weapons and equipment since the start of the war. The EU has so far provided about €8 billion of military equipment to Ukraine, according to Borrell.

According to one senior official from a European capital, restocking of some sophisticated weapons may take “years” because of problems in the supply chain and the production of chips. This has fueled fears that the U.S. defense industry can profit even more from the war, The Politico reported.

“The Biden administration has ramped up military aid to Ukraine to an unprecedented degree…It’s also been good business for US defense contractors. Among the biggest winners are Lockheed Martin, Raytheon, and Northrop Grumman. Each of their stocks has climbed since Russia’s invasion, with Lockheed up about 38 per cent this year,” according to a report in Vox.com

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