A proposed European Union plan revealed on Monday, as the price of the West’s “energy war” with Russia took a mounting toll, that fossil fuel companies may have to share their extra profits to help European consumers and industry cope with soaring energy bills.
As a result of Moscow cutting gas supplies in reaction to Western sanctions over its activities in Ukraine, energy costs and inflation have skyrocketed. France told customers they would have to share some of the pain whereas Britain is among the nations which is facing the possibility of recession.
According to the draught plan from the European Commission, which is anticipated to be revealed this week, the 27 EU nations would implement a “solidarity payment” for the fossil fuel industry.
According to the draught, which is subject to revision and will then need to be approved by EU governments, oil, gas, coal, and refining corporations would be required to make a financial contribution based on taxable excess profits made in the 2022 fiscal year.
According to sources, the draught EU plan stated that “such gains do not correspond to any recurring profit that these firms would or could have expected to obtain in normal conditions.”
The measures are also anticipated to include a lifeboat for electricity companies experiencing a shortage of cash. Diplomats indicated that countries are divided over the specifics and whether to set a cap on the price of petrol they pay. Russia has threatened to stop all shipments if a cap is put on its gas.
Featured Image: Helsinki Times
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