- New analysis reveals Big Oil firms record $380 billion profit since invasion
- Big five oil majors’ profits jumped by 125% in year Russia invaded Ukraine
- Global Witness warns against exploitation of Ukraine’s critical minerals
The world’s five largest listed oil companies – BP, Shell, Chevron, ExxonMobil and TotalEnergies – have made profits of more than $380 billion dollars since Russia’s invasion of Ukraine, and the ensuing rise in energy bills.
New analysis from campaigning investigators Global Witness has revealed that the big five oil majors’ profits jumped by 125% in the year Russia invaded Ukraine (from $87 billion in 2021 to $195 billion in 2022) leading to politicians and anti-poverty campaigners expressing outrage at oil firms’ war profiteering.
Some governments introduced windfall taxes and price caps, but many nations left households to shoulder the costs alone. The UK’s energy bills remain £300 higher than before the Ukraine war, and are set to rise again by £85 a year.
The recent bill rise has led to UK energy secretary, Ed Miliband, calling out the dangers of ‘fossil fuel markets controlled by petrostates and dictators’ and demanding more protection for bill-payers.
Patrick Galey, Global Witness Senior Fossil Fuels Investigator said:
“Three years on from Russia’s invasion of Ukraine, millions of Ukrainians continue to live in fear, and families across Europe are walking on a tightrope due to sky-high energy bills.
“Our analysis shows that the world’s biggest fossil fuel companies have made obscene profits throughout this misery, amassing wealth they couldn’t have dreamt of before Putin invaded Russia.
“To make matters worse, oil giants are now spending their spoils on record payouts to wealthy shareholders and climate-wrecking oil and gas production.
“It’s clear we can’t trust Big Oil with the green energy transition or care for ordinary people – it’s time governments pushed them to pay for the damage they’re causing and steered us towards a fair and fossil-free future.”
While households have struggled to pay energy bills, shareholders in the five big oil firms have reaped huge rewards since Russia’s war on Ukraine. Prior to the war, in 2021, they received dividends of $50 billion.
Since the invasion, those payouts haven’t dropped below $110 billion, meaning shareholders have more than doubled their returns during the energy crisis.
Threatened dash for critical minerals
The research comes amid conflict negotiations between Washington and Moscow that have included threats from the US President about deals involving Ukraine’s critical minerals and rare earth materials.
Global Witness has warned against a dash for critical minerals that risks mirroring the exploitation of the nation’s oil and gas amid the conflict – particularly given such minerals could potentially be used in a just transition away from fossil fuels.
Emily Iona Stewart, Global Witness Head of Policy and EU Relations said:
“President Trump’s reported attempts to secure access to Ukraine’s rare earth minerals in exchange for U.S. military defense support set a dangerous precedent. This is resource exploitation masquerading as diplomacy.“
Ukraine’s natural wealth should benefit its people, not be used as a bargaining chip in geopolitical power plays. The global energy transition must not be built on backroom deals that prioritise corporate and political interests over justice, transparency, and sovereignty.”
Notes to editor
Methodology
- All dollar values referring to Big five profits and shareholder payouts are taken from company financial statements and/or quarterly results
- Profits are defined as earnings, adjusted earnings, adjusted net income, or, in BP’s case, replacement cost (RC) profit. Shareholder payouts include dividends and share buybacks and repurchases