Sen. Graham: Obama's foreign policy 'falling apart ... America is weak and indecisive'

This is a rush transcript from "On the Record," March 10, 2014. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: Senator Lindsey Graham, he is blasting President Obama's foreign policy. Tweeting, "Putin basically came to the conclusion, after Benghazi, Syria and Egypt, everything Obama's been engaged in, he is a weak, indecisive leader."

Senator Lindsey Graham joins us.


VAN SUSTEREN: Good evening, sir.

So, you obviously don't agree with anything that -- how the president is handling his foreign policy?

GRAHAM: No. It's falling apart. You tell Putin you better not give Snowden asylum, even before you agree with Snowden or not, there will be consequences, nothing happens. We will find the people who killed our four folks in Libya. We are going to bring them to justice. 18 months later, nothing happens.

VAN SUSTEREN: Do we know where they are, by the way?

GRAHAM: Oh, one of them has been-- the lead suspect has been interviewed by the -- I think -- CNN for sure and one British newspaper. Yes --


GRAHAM: -- if CNN can find them, why can't we find them?

VAN SUSTEREN: Are we trying to find them?

GRAHAM: I am completely upset with the investigation. I think the Obama administration knows where they are at, they are just not doing anything about it. And when you tell --



GRAHAM: Maybe they don't want these people to come to light and prove it was terrorism. I don't know. I just know this. You have four dead Americans. The first ambassador killed in 33 years. The president made all these speeches about we are going to bring them to justice. We know where at least one of them is at, and nothing has happened. You tell Assad, if you use chemical weapons, you are going to pay a heavy price. He used chemical weapons and he's stronger than ever. Yet --

VAN SUSTEREN: There's a report about all these children in Syria that just came out this weekend.

GRAHAM: It breaks my heart. America is weak and indecisive. If on, 16 March, Putin annexes the Crimea through a sham election -- you can't have a free and fair election when you have Russian tanks parked outside somebody's house and you are basically blocking the Crimea. So this election, the referendum on 16 March is illegitimate, illegal. If business as usual continues after this referendum, then Obama has made the mistakes for the ages.

VAN SUSTEREN: Is it, then, over at least, or is this just --

GRAHAM: No, it's not over.

VAN SUSTEREN: I mean, if Crimea becomes part of Russia?

GRAHAM: Here is what Obama should say. I will never go to the meeting, G-8 or G-20 with Putin in attendance. If he goes, I don't. We need to get Western Europe to link arms with us and provide sanctions against the Russian oligarchs, his friends, and have economic sanctions.

VAN SUSTEREN: How is that going to happen? They are all hooked on Russian oil.

GRAHAM: Sometimes you have to suffer for your freedom. And the suffering I'm asking of the Europeans is small compared to what could happen to us as a world. This is a chance to distance Putin. He needs to sell the oil and gas more than the Europeans need to buy it.

VAN SUSTEREN: How does President Obama tell Angela Merkel, the German chancellor, when we are bugging her phone?

GRAHAM: This is not about bugging her phone.

VAN SUSTEREN: She is not happy with us.

GRAHAM: Well, it's not about being happy. I hope she is -- Is she happy with Putin? She has a chance to rally Western Europe to align themselves with the United States, open up gas reserves here, build the damn pipeline, and try to provide Europe with some gas so the Russians won't have a monopoly and a hold and threaten Europe. If we don't take this threat seriously and change our energy policies, more is to come.

And the Iranians are watching every move. I would tell Chancellor Merkel, if you give Putin a pass, if you allow him to annex Crimea by force, threat and intimidation, you are basically encouraging the Iranians to break out with their nuclear program. And you have got a chance to change history, take it. But that means a leader in the United States who knows how to lead.

VAN SUSTEREN: Senator, always nice to see you. Thank you, sir.

GRAHAM: Thank you.