Lithuanian energy company to donate a share of its profits to Ukraine

According to a proposal by Lithuania’s largest utility, energy companies like ExxonMobil and Shell should donate one-tenth their windfall profits to Ukraine, as they were able to earn them from Russia’s war.

Darius Maikstenas is the chief executive of Ignitis Group . This appeal was launched after the listed Lithuanian company stated it would ask for its annual meeting to approve the payment of about 10% of its extra profits starting in 2022 (or EUR12mn) to rebuild Ukraine’s energy infrastructure.

We urge you to do the same and allocate part of your 2022 earnings for Ukraine. Maikstenas stated that it is morally right to share profits with the country suffering from the war that led to them.

Chevron, ConocoPhillips and Equinor were notified by the appeal, stating that both oil and gas companies as well as utilities had made hundreds of billions in additional profits after Russia’s invasion of Ukraine one year ago. Both natural gas and electricity prices have risen as a result of the war.

“All of us can do more together. We can help this country in need and accelerate its recovery by contributing to it. . . Maikstenas stated that the Russian war in Ukraine, which began a year ago, had devastating effects on the Ukrainian people.

He said that the large increase in profits did not come from “investments or business strategies”, but was due to higher prices caused by the war.

Baltic countries have been at forefront of US and European policymakers’ efforts to support Ukraine and toughen sanctions on Russia. The donation of drones and other military equipment has been made possible by public appeals in Lithuania. Ignitis’s suggestion is the most concrete corporate action in the region.

Ignitis is listed at Vilnius in 2020 as part of Lithuania’s effort to keep its energy independence form Russia. This is in response to the Baltic state’s attempts to increase its domestic electricity production.

After record profits in 2022, some countries like the UK have implemented a windfall tax on utilities and oil and gas companies. Equinor, Shell, ExxonMobil, and BP all posted combined net profits exceeding $200bn in the last year.