American oil group Exxon Mobil Corp. sued the European Union in an attempt to cancel new taxes on the extraordinary profits of oil companies, reports Bloomberg, citing Agerpres.

The lawsuit is a major response to the new taxes by the oil industry, which has enjoyed record profits this year as Western governments have tried to contain a sharp rise in consumer electricity bills following Russia’s invasion of Ukraine.

Exxon Mobil’s approach could jeopardize a tax on windfall oil companies announced by Ursula von der Leyen on September 14 that could bring billions of euros into state budgets, money that the European executive hopes to use to reduce energy costs for consumers.

Exxon Mobil said the lawsuit was filed Wednesday by its subsidiaries in Germany and the Netherlands at the European Union’s General Court in Luxembourg.

Exxon representative Casey Norton emphasized that a tax on excess profits of oil companies is counterproductive and will “undermine investor confidence, discourage investment and increase dependence on energy and fuel imports.”

Exxon Mobil is having its most profitable year ever

In a recent call with investors, Exxon CFO Kathy Mikells estimated that the tax on oil company profits could cost Exxon at least $2 billion by the end of 2023.

Those estimates “depend on how each country implements the legislation,” said Kathy Mikells.

Recently, Exxon Mobil returned to the top ten companies of the American stock index S&P 500, and 2022 is predicted to be the best in the history of the company. The oil giant has been one of the biggest investors in the European oil refining sector over the past decade, pouring more than three billion dollars into major refining projects.

As Exxon considers multibillion-dollar new investments in Europe, “we expect a strong business case backed by a stable and predictable investment environment,” Casey Norton said.

“Whether we invest here will largely depend on how attractive and globally competitive Europe is,” an Exxon spokesman said.

How the Romanian government wants to tax the profits of oil companies

The Romanian government on Wednesday approved the transposition of the Regulation on the taxation of excess profits of energy companies, according to which 3.9 billion lei will be collected in a special fund.

According to the regulatory act, commercial companies operating in the fields of oil, natural gas, coal and oil refining will pay a solidarity contribution of 60% for more than 20% more than the average profit for the last four years, respectively 2018. , 2019, 2020 and 2021 years.

Of the amount collected in this special fund, at least 70% will be allocated to finance strategic investments, as well as investments in energy efficiency and energy from renewable sources.

The deadline for submission of the declaration and payment is by June 25 of the following year inclusive or by the 25th of the sixth month inclusive after the end of the changed financial year.