(Bloomberg) -- Exxon Mobil Corp. is suing the European Union in a push to eliminate a new windfall tax against oil groups, arguing the bloc does not have legal authority to impose the levy.

The lawsuit is a major response to the tax from the oil industry that has reaped record profits this year as western governments have sought to bring down skyrocketing consumer energy bills following Russia’s invasion of Ukraine. The action could jeopardize the tax, which would raise billions to bring down consumer energy costs. 

Exxon said the lawsuit was filed Wednesday by its Dutch and German subsidiaries at the EU’s General Court in Luxembourg.

The tax is counterproductive, Exxon spokesperson Casey Norton said, and would “undermine investor confidence, discourage investment, and increase reliance on imported energy and fuel products.”

Exxon Chief Financial Officer Kathy Mikells told investors recently the windfall taxes could cost the company at least $2 billion through the end of 2023. The estimate “depends on a country-by-country implementation of specific legislation.”

Exxon recently reentered the top 10 biggest companies in the S&P 500 and is on track for its best year ever. The oil giant said it has been one of the largest investors in European refining over the last decade, pouring more than $3 billion in large refining projects.

As Exxon considers future multibillion-dollar European investments, “we look for strong business cases underpinned by a stable and predictable investment climate,” Norton said. “Whether we invest here primarily depends on how attractive and globally competitive Europe will be.”

©2022 Bloomberg L.P.