Conflict Profiteering

The Ukraine War and Conflict Profiteering: How Top Oil Giants Reap Billions from Chaos

Introduction

The Russo-Ukrainian War, which escalated dramatically with Russia’s full-scale invasion in February 2022, has unleashed untold human suffering, geopolitical upheaval, and economic turmoil. Yet, amid the devastation, a stark paradox has emerged: while millions face displacement, hunger, and violence, the world’s largest fossil fuel corporations are posting record-breaking profits. This article examines how the conflict has become a catalyst for conflict profiteering, focusing on the top five oil giants—ExxonMobil, Shell, BP, Chevron, and TotalEnergies—whose windfall gains expose the moral ambiguities of war-driven capitalism.

Understanding Conflict Profiteering

Conflict profiteering refers to the exploitation of war or political instability for financial gain. It manifests in various forms: arms dealers selling weapons to warring factions, contractors overcharging for reconstruction projects, or corporations capitalizing on disrupted markets to inflate prices. In Ukraine, the energy sector has become a prime arena for such exploitation. The war destabilized global oil and gas supplies, creating a lucrative environment for companies with the resources to manipulate scarcity.

The Ukraine War and Global Energy Markets

Russia’s role as a top oil exporter (12% of global supply) and Europe’s largest gas provider (40% of pre-war imports) made energy a central battleground. Western sanctions aimed at crippling Russia’s economy—including bans on Russian oil imports and restrictions on financial transactions—triggered a supply shock. Brent crude prices surged to $139/barrel in March 2022, the highest since 2008, while European gas prices quintupled.

Though intended to pressure the Kremlin, these measures inadvertently handed oil giants unprecedented pricing power. Even as many Western companies publicly exited Russia, the global supply crunch enabled them to profit from soaring prices elsewhere. Meanwhile, Russia rerouted exports to India and China at discounted rates, ensuring continued revenue streams. The result? A fractured market where scarcity became a profit engine.

The Top 5 Oil Giants: Profits, Power, and Politics

1. ExxonMobil: Record Earnings and Legal Battles

ExxonMobil, the U.S. energy titan, reported a $55.7 billion profit in 2022, its highest in 152 years. While it pledged to exit Russia’s Sakhalin-1 oil project (a move delayed by a Kremlin-imposed legal battle), its global operations thrived. U.S. shale production surged, and refining margins ballooned as fuel prices spiked. CEO Darren Woods defended the profits as “meeting society’s needs,” ignoring critiques that Exxon prioritized shareholder returns over stabilizing markets.

2. Shell: Windfall Taxes and “Ethical” Exits

Shell vowed to withdraw from Russia, writing off $3.9 billion in assets. Yet, its 2022 profits hit $39.9 billion, double 2021’s figures. The company benefited from redirected LNG shipments to Europe, where prices soared. Despite UK windfall taxes claiming 75% of North Sea profits, Shell paid zero UK income tax in 2022, citing historic losses. Critics accused Shell of “war-enabled greed,” reinvesting profits in shareholder buybacks over renewable energy.

3. BP: Strategic Shifts and Shareholder Rewards

BP, which owned a 19.75% stake in Russian oil giant Rosneft, took a $25.5 billion hit exiting Russia. Yet, soaring oil prices propelled its underlying profits to $27.7 billion in 2022, allowing BP to boost dividends and buybacks by $8.2 billion. CEO Bernard Looney framed the war as a turning point for energy security, pivoting to invest in fossil fuels despite prior net-zero pledges.

4. Chevron: Expanding Footprints and Climate Backtracking

Chevron’s profits leaped to $35.5 billion in 2022, up from $15.6 billion in 2021. While distancing from Russia, it expanded in the Permian Basin and Kazakhstan. CEO Mike Wirth lobbied against U.S. climate policies, arguing, “The world needs more oil.” Environmental groups condemned Chevron for using the war to justify fossil fuel lock-ins.

5. TotalEnergies: “Neutrality” and Gas Gambles

France’s TotalEnergies faced backlash for maintaining stakes in Russian LNG projects (e.g., Yamal LNG). Its 2022 profits hit $36.2 billion, funding a $9 billion buyback. CEO Patrick Pouyanné claimed “neutrality,” arguing gas was vital for Europe. Yet, Total’s continued Russian ties drew accusations of complicity in funding Putin’s war machine.

Political Complicity and Policy Shifts

Western governments, desperate to replace Russian energy, relaxed regulations and subsidized fossil fuels. The U.S. fast-tracked LNG exports, while Europe revived coal plants and signed long-term gas deals with alternative suppliers. The Biden administration criticized oil giants for “war profiteering” but rejected production caps, instead releasing strategic reserves to tame prices—a move that barely dented profits.

Meanwhile, the war undercut climate agendas. BP scaled back emission-cutting targets, and the EU labeled gas “green” in its taxonomy. Oil lobbyists framed fossil fuels as a geopolitical necessity, delaying renewables investments.

Ethical and Humanitarian Implications

The oil giants’ gains starkly contrast with the war’s human toll: 8 million Ukrainian refugees, 15 million displaced, and $411 billion in reconstruction costs. While companies argue they’re “meeting demand,” critics highlight price gouging. In 2022, U.S. gasoline prices hit record highs despite stable production costs, suggesting corporate exploitation.

NGOs like Global Witness estimate that $2.24 billion in Russian oil revenue flowed to the EU via “shadow tankers” and third countries, implicating Western refineries. Meanwhile, European households faced energy poverty, with bills doubling in 2022.

Conclusion: Profits Over Peace?

The Ukraine war underscores a brutal truth: in times of crisis, those with capital and infrastructure can turn chaos into opportunity. The top five oil giants, shielded by geopolitical gambits and market manipulation, have extracted billions while ordinary citizens bear the costs. Unless governments impose stricter windfall taxes, regulate prices, and accelerate green transitions, conflict profiteering will remain an entrenched feature of global capitalism—one where human suffering fuels corporate balance sheets.

As the war drags on, the world must choose: Will it allow energy giants to dictate the terms of recovery, or redefine security to prioritize people over profits?

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Sources: Financial reports (ExxonMobil, Shell, BP, Chevron, TotalEnergies), International Energy Agency, Global Witness, Reuters, BBC, The Guardian.