Exxon Mobil files a lawsuit against EU because of windfall tax on oil companies

It is reported that Exxon Mobil Corp. is attempting to block the introduction of a new windfall tax against the oil industry. The company is suing the European Union, stating that the bloc has no legal grounds for imposing such a tax. The lawsuit will become a significant response to the tax from oil companies, that have received record profits over the current year.

As it was said by Casey Norton, an Exxon representative, this tax is counterproductive, and it might diminish investors’ confidence, reduce investment volumes, and increase the dependence of European countries on imported energy and fuel.

This point of view was also shared by Exxon Chief Financial Officer Kathy Mikells, who stated that unpredicted taxes similar to the mentioned one might cause significant damage to the company of about $2 billion throughout the next year. As she said, the precise estimation would depend on specific legislation in each country.

Norton also added that the company is now searching for “strong business cases underpinned by a stable and predictable investment climate,” as Exxon considers massive future investments in European countries. As noted by Norton, the attractiveness and global competitiveness of Europe would be determining factors in whether the company would invest there.