Home Diplomacy EU, US Seal $750bn Energy Deal Amid Russia-Ukraine War

EU, US Seal $750bn Energy Deal Amid Russia-Ukraine War

by Radarr Africa
EU, US Seal $750bn Energy Deal Amid Russia-Ukraine War

The European Union (EU) has signed a major energy trade agreement with the United States, committing to buy $750 billion worth of hydrocarbons over the next three years.

The agreement, announced on Sunday, July 27, 2025, aims to reduce Europe’s reliance on Russian energy following the ongoing war in Ukraine. However, the deal has sparked a major political backlash, especially in France, where opposition parties accuse Brussels of sacrificing Europe’s sovereignty to Washington.

According to details of the deal, the EU will purchase large volumes of American liquefied natural gas (LNG), oil, and nuclear fuel. The purchases will be spread over three years, up to 2028, with a total value estimated at $750 billion.

European Commission President Ursula von der Leyen announced the deal after a meeting with U.S. President Donald Trump in Scotland. She described the agreement as “a strong commitment to strengthen energy security and economic partnership between Europe and the United States.”

In addition to energy purchases, the EU will invest $600 billion in industrial and technology projects in the United States, as part of efforts to boost trade and economic ties.

Von der Leyen said the pact would “ensure that Europe never faces the kind of energy blackmail it experienced in 2022,” referring to Russia’s gas supply cuts during the Ukraine crisis.

The U.S., in return, has agreed to reduce import tariffs on European goods to 15%, down from the 30% initially proposed by Washington. This tariff reduction covers key sectors such as aerospace, chemicals, semiconductor equipment, agricultural products, and critical raw materials.

However, tariffs on steel and aluminum will remain unchanged, and pharmaceutical products were excluded from the agreement.

Despite the positive tone from Brussels, the deal has triggered heated reactions in France. Political opposition parties from both the far-right and left accused the EU of surrendering Europe’s economic independence to the U.S.

Far-right leader Marine Le Pen of the National Rally party described the deal as “a political, economic, and moral fiasco,” saying it was an “outright surrender of our energy and military sovereignty.”

On the left, Jean-Luc Mélenchon of France Unbowed accused the European Commission of betraying European interests and violating the Lisbon Treaty. “Everything was handed over to Trump,” he said. “Tariffs, mandatory purchases, hidden GDP taxes… European liberalism has become a bad joke.”

The Socialist Party also joined the criticism. Pierre Jouvet, the party’s Secretary General and Member of the European Parliament, warned that the deal would lead to “economic vassalization” and harm French industries. “Settling for 15% tariffs means sacrificing our jobs, our production, and our environment,” he said.

Supporters of the deal argue that it is a practical solution to Europe’s urgent energy needs and a step towards reducing dependence on Russian gas. They say the agreement strengthens transatlantic ties at a time when global power competition is increasing.

However, critics say it simply replaces one dependency with another—moving Europe from reliance on Russia to reliance on the United States. They argue that this undermines the EU’s ambition of achieving strategic autonomy in energy and economic policy.

Analysts believe the pact could have long-term implications for global energy markets and transatlantic trade relations. It may also reshape Europe’s internal politics, as energy security and economic independence become central issues in the next round of elections.

For now, the deal marks one of the most significant EU–US trade agreements in recent history, coming at a time when both sides are seeking stronger cooperation amid growing global instability.

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