As the war continues, high-ranking European officials are upset with Joe Biden's administration and now charge that Americans are profiting from the war as EU nations suffer while they make a killing.
One senior source told Politico, "If you look at it soberly, the U.S. is the country that is most benefiting from this war because they are selling more gas at higher prices and because they are selling more weapons."
The remarks, which have received support in both public and private from officials, ambassadors, and ministers worldwide, come in the wake of growing resentment in Europe over American subsidies that endanger European industry.
The polluted atmosphere among Western friends is likely to be welcomed by the Kremlin.
The senior EU official declared, "We are actually at a historic crossroads," warning that the dual blow of trade disruption brought on by U.S. subsidies and rising energy costs runs the risk of alienating the public from both the war effort and the transatlantic relationship. America has to understand that many EU nations' public sentiment is changing.
Josep Borrell, the top diplomat for the EU, made a similar request to Washington to address European concerns.
America dismissed Europe's protests. According to a representative of Biden's National Security Council, "Putin's invasion of Ukraine and Putin's energy war against Europe, period, are to blame for the increase in gas prices in Europe." The NSC official claimed that U.S. Exports of LNG to Europe "increased significantly and made it possible for Europe to diversify away from Russia."
Biden's green levies and subsidies, which Brussels claims unjustly shift trade away from the EU and jeopardize European sectors, have been the main source of contention in recent weeks. European governments have raised official complaints, but Washington has so far shown no sign of caving in.
Putin's invasion of Ukraine is simultaneously dragging European economies into recession, causing inflation to soar and a terrible squeeze on energy supplies that threatens outages and shortages this winter.
European nations are switching to American gas to lessen their dependency on Russian energy, but the cost is nearly four times higher for Europeans than it is for Americans. Then there is the potential increase in demand for American-made military equipment when European forces run out of supplies after supplying Ukraine with weaponry.
For top officials in Brussels and other EU capitals, it has all been too much. High U.S. gas prices, according to French President Emmanuel Macron, are not "friendly," while Germany's economy minister has urged Washington to demonstrate greater "solidarity" and assist in bringing down energy prices.
Ministers and diplomats stationed in other parts of the group expressed their displeasure with how Biden's administration simply disregards the effects of its domestic economic policies on European allies.
According to the senior official cited above, when EU leaders confronted Biden about the high gas prices in the US during the G20 summit last week in Bali, the American president merely appeared to be unaware of the situation. Other EU representatives and diplomats concurred that American ignorance of the repercussions for Europe was a significant issue.
David Kleimann of the Bruegel think tank stated that "the Europeans are dissatisfied about the lack of prior knowledge and consultation."
Officials on both sides of the Atlantic are aware of the dangers the Western alliance faces as the environment becomes more hostile. Diplomats from the EU and US concurred that Putin would love for there to be squabbling.
Fears of a transatlantic trade war are once again at the top of the political agenda as a result of the developing controversy over Biden's Inflation Reduction Act (IRA), a significant tax, environment, and health care package. As authorities in Brussels prepare to create an emergency war chest of subsidies to prevent the collapse of European businesses, EU trade ministers are scheduled to discuss their response on Friday.
Liesje Schreinemacher, the Dutch Minister of Trade, warned that the Inflation Reduction Act is extremely concerning.
Tonino Picula, the head of the European Parliament's transatlantic relations committee, claimed that the United States is pursuing a domestic agenda that is regretfully protectionist and prejudiced against its partners.
The price of petrol for European consumers is decided by the private market and not by U.S. government policy or action, an American official emphasized. The official stated that "U.S. businesses have been honest and dependable suppliers of natural gas to Europe." Another factor limiting export capacity is a June accident that resulted in the closure of a crucial plant.
According to the official, companies that resell gas inside the EU typically receive the difference between the export and import prices instead of U.S. LNG exporters. France's TotalEnergies, for instance, is the largest European owner of long-term gas contracts with the United States.
"We will continue to engage with the EU, its members, and other European nations to guarantee sufficient supplies will be available for the winter and it's beyond," the NSC spokeswoman added. Allies and partners in Europe were able to attain encouraging storage levels in time for this winter thanks to an increase in US LNG supply on a worldwide scale.
According to European Commissioner for the Internal Market, Thierry Breton, when gas from the United States crosses the Atlantic, its price is multiplied by four. Chemical multinational Solvay recently declared that it would prefer to make new investments in the United States rather than Europe.
The Inflation Reduction Act's green energy subsidies worry the EU. One EU ambassador questioned, "Is Washington still our buddy or not?" To stop American competitors from destroying European industry, the EU is preparing its responses, such as a significant subsidy drive. The U.S. is allegedly following China's example of economic isolationism, according to France's minister of the economy. According to Borrell, the EU has so far given Ukraine military weapons worth around €8 billion.
Because of issues with the supply chain and chip fabrication, restocking some highly advanced weapons could take "years." Behind the scenes, there is also mounting resentment regarding the funding for the American defense industry.