Exxon Mobil sues the EU for “excessive profits”

According to The Financial Times, the case was brought by Exxon’s German and Dutch subsidiaries at the European General Court in Luxembourg.

Exxon spokesman Casey Norton said they are aware of the high energy costs that place a heavy burden on families and businesses, but the tax in question has the opposite effect and will damage investor confidence, discourage investment and will increase dependence on imported energy.

Noting that Exxon has spent $3 billion on refinery projects in Europe in the past 10 years, Norton noted that the company increased production at a time when Europe was struggling to reduce its energy imports from Russia.

Norton said Exxon will now take the tax into account when assessing “billions of euros in investments” in Europe. “Whether we invest here depends mainly on how attractive and globally competitive Europe will be.” he made the assessment of it.

WHAT HAPPENED?

In September, EU member states agreed to measures including a mandatory reduction in electricity demand, limiting the revenue of low-cost electricity producers and receiving contributions from fossil fuel producers in response to the energy crisis.

Proposals drawn up by the EU Commission include a voluntary reduction in total electricity consumption by member states by 10 percent, a mandatory reduction in electricity consumption by 5 percent at peak times, limiting the income of those who produce electricity to from renewable, nuclear and coal sources. sources at 180 euros per megawatt hour, and “solidarity of the fossil energy sector”, which included the collection of the tax under the name of “contribution”.

Although the new tax regulation is expected to come into force on December 31, a tax of at least 33 percent is expected to apply to taxable profits in 2022-2023.

The lawsuit filed by Exxon Mobil is seen as a major response to taxes on the oil industry targeted by Western governments at a time when energy prices are rising after Russia’s war in Ukraine. (AA)