ExxonMobil is suing the European Union (EU) in response to the new windfall tax being imposed on oil and gas companies.

The energy firm has called the tax “counter-productive,” after boasting a quarterly profit of more than £17 billion in October.

The EU is imposing the tax, as it feels these oil and gas giants have received large profits that they are not entitled to – from inflation and demand shifts due to the ongoing Ukraine War.

It announced a 33% tax on these companies’ profits for 2022 – as they were 20% higher on average than in the previous three years.

ExxonMobil stresses that the tax will hamper investment – with an estimation that the levy will cost the firm more than $2 billion (£1.6bn).

The European Commission’s spokesperson said: “The Commission maintains that the measures in question are fully compliant with EU law” – explaining that the EU has taken note of the lawsuit.

ExxonMobil is a US energy firm, with spokesperson Casey Norton stating: “Whether we invest here primarily depends on how attractive and globally competitive Europe will be.”