Bessent Blames Ukraine for High Energy Prices

Treasury Secretary Scott Bessent named a new culprit this week for the high energy prices that are weighing on the world economy: Ukraine.

Following two-days of meetings in North Carolina with finance ministers from around the world, Mr. Bessent cited Ukraine’s attacks on Russia’s oil infrastructure as part of the reason for the global energy shock.

The comments came after the United States angered some allies who have staunchly supported Ukraine for inviting Russia’s finance minister, Anton Siluanov, to the gathering of the Group of 20 nations. Four years into the war, Ukraine has recently resorted to launching drone attacks on Russian oil refineries, costing Russia tens of millions of barrels in refined oil exports and disrupting global supplies.

“We are going through an energy shock right now due to both the war in Ukraine — because Ukraine has decided that they want to blow up Russian energy assets and refine products, so that is creating upward price pressure on a global basis,” Mr. Bessent said on Fox News on Wednesday. “And then the conflict in Iran. And the conflict in Iran will end.”

Mr. Bessent is facing a challenge as he tries to cool global energy prices while increasing economic pressure on Iran.

Most lawmakers in the United States consider Russia the aggressor in that war. The Senate passed bipartisan legislation that would require the Trump administration to impose tougher sanctions on Russia.

But Mr. Bessent and President Trump have taken a more accommodating approach to dealing with Russia.

In April, the Treasury secretary faced criticism for temporarily lifting sanctions on some Russian oil in an effort to lower global energy prices.

He stirred controversy at the G20 summit for holding a bilateral meeting with Mr. Siluanov. At similar forums in the past, U.S. and other Western officials left the room when Mr. Siluanov addressed his counterparts by teleconference.

Mr. Bessent defended his meeting with Mr. Siluanov at a news conference on Tuesday.

“Unfortunately, this horrible conflict between Russia and Ukraine — if the sides don’t talk, if we are not engaged — then how can it be solved?” Mr. Bessent said. “I know that some Europeans had a sour taste, but I think it’s very important to to engage.”

Russia’s president, Vladimir V. Putin, this week expressed solidarity with Iran and praised its “courage and resilience.”

Mr. Bessent’s criticism of Ukraine’s military tactics drew backlash among some Ukrainians.

Anton Gerashchenko, a former adviser to Ukraine’s internal affairs minister, said that the war in Iran was the main reason oil prices were elevated.

“The war in Iran has had significantly more impact on the global energy market than Ukrainian strikes diminishing Russia’s capacity to wage a war of aggression against Ukraine,” Mr. Gerashchenko said in a social media post.

Mr. Bessent has had a fraught relationship with Ukraine since the beginning of Mr. Trump’s second term, when the secretary traveled there and clashed with its president, Volodymyr Zelensky, over the terms of an agreement concerning the country’s minerals.

According to the book “Regime Change” by Maggie Haberman and Jonathan Swan, New York Times reporters, Mr. Bessent urged Mr. Trump not to invite Mr. Zelensky to the White House last year for an Oval Office meeting until the minerals deal was signed. The Treasury secretary referred to Mr. Zelensky as a “special-needs child for the Europeans” and said that he was acting like “Mr. Bean on crack.”

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