US Warns Russian Economy Could Collapse Under Tougher Sanctions

Bessent, in an interview to NBC News, said President Donald Trump and Vice President J D Vance had a very productive call with European Commission President Ursula von der Leyen, who later followed up with him on Friday to discuss how the US and EU could increase pressure on Russia.

The Trump administration has imposed an additional 25 per cent tariff on India for its purchases of Russian oil, on top of the 25 per cent reciprocal tariffs announced earlier, bringing the total duties on New Delhi to 50 per cent, effective August 27.

The treasury secretary said the US is prepared to increase pressure on Russia, "but we need our European partners to follow us."

"We are in a race now between how long the Ukrainian military can hold up versus how long the Russian economy can hold up," Bessent said. He added that if the US and EU impose more sanctions and secondary tariffs on countries buying Russian oil, "the Russian economy will be in full collapse and that will bring President (Vladimir) Putin to the table."

Trump said he was "very disappointed" that India was buying "so much" oil from Russia.

"We put a very big tariff on India, 50 per cent tariff, very high tariff. I get along very well with (Prime Minister Narendra) Modi, he's great. He was here a couple of months ago," Trump said in the Oval Office on Friday.

The president was responding to a question on whether he is ready to reset relations with India, as ties between the two countries continue to reel under possibly their worst phase in over two decades.

Several Trump administration officials, including Bessent and trade advisor Peter Navarro, have said India's purchases of Russian oil are financing Russia's war effort in Ukraine.

India has called the US tariffs "unjustified and unreasonable." Defending its purchase of Russian crude oil, India has maintained that its energy procurement is driven by national interest and market dynamics.