• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 2 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 day "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 8 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 1 day The Federal Reserve and Money...Aspects which are not widely known
  • 6 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 1 day "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 8 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 9 days Goldman Betting on Cryptocurrencies
  • 12 days Сryptocurrency predictions
EU Discusses $65-70 Price Cap On Russian Oil

EU Discusses $65-70 Price Cap On Russian Oil

The European Union is currently…

Alex Kimani

Alex Kimani

Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com. 

More Info

Premium Content

European Oil Giant Warns Windfall Tax Could Backfire

  • OMV CEO Alfred Stern is warning that the EU’s planned windfall tax could have a massive impact on energy companies’ bottom lines. 
  • "We will keep an eye on that, as it can already have a massive impact," Stern has told journalists.
  • Brussels is hoping to skim off revenues from low-cost electricity generators and make fossil fuel firms share windfall profits.

The chief executive of Austrian multinational integrated oil, gas and petrochemical company OMV (OTCPK: OMVJF) Alfred Stern has warned that the EU's planned windfall levy could have a huge impact, and criticized basing the proposal on profits over the last three years, pointing out that they were not normal times.

"We will keep an eye on that, as it can already have a massive impact," Stern has told journalists. However, Stern says it’s difficult to assess the exact impact of the levy considering that specifics of the proposal have not yet been set out. 

Brussels is hoping to skim off revenues from low-cost electricity generators and make fossil fuel firms share windfall profits in a bid to raise more than 140 billion euros ($140 billion) to shield consumers from soaring energy prices. 

Governments across Europe have already plowed hundreds of billions of euros into tax cuts, handouts and subsidies to tackle a crisis that is forcing industries to shut production, driving up inflation and hiking bills ahead of winter. According to a draft proposal released on Wednesday, energy companies would pay a solidarity levy of 33% on any profits for the current year that were 20% above the average of the past three years.

Back in May, former UK Finance Minister Rishi Sunak imposed a windfall tax on oil and gas majors in a bid to alleviate the country's worsening cost-of-living crisis. Chancellor Sunak said that the levy would be taxed on energy companies that were making “extraordinary profits” due to the spike in commodity prices. 

Meanwhile, Argentina’s President Alberto Fernández has vowed to pursue a special tax on company profits boosted by the war in Ukraine. The bill aims to levy an additional 15% tax on companies with profits of over 1 billion pesos (about $8.3 million) in 2022 whose profit margin is either more than 10% in real terms or is 20% higher than in 2021. The measure is seen as an attempt by Argentina’s center-left government to reduce the fiscal deficit and contain runaway inflation, which is now approaching 80%.

By Alex Kimani for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News