UNITED NATIONS, Aug 03 (APP): United Nations Secretary-General Antonio Guterres urged governments on Wednesday to tax huge oil and gas profits to support the most vulnerable people, as the world grapples with energy, food and finance crises, resulting in part by the war in Ukraine.
“It is immoral for oil and gas companies to be making record profits from this energy crisis on the backs of the poorest people and communities,” Guterres told a press conference at UN Headquarters in New York.
The funds equate to $100 billion in the first quarter of this year, he said, adding, “I urge all governments to tax these excessive profits, and use the funds to support the most vulnerable people through these difficult times.”
Earlier this week, BP was the latest fossil fuel giant to announce huge gains, revealing it had tripled its profits to nearly £7bn in the second quarter of the year
amid high oil prices during Russia’s invasion of Ukraine.
Guterres said such profits were unacceptable as people around the world faced financial ruin.
“This grotesque greed is punishing the poorest and most vulnerable people while destroying our only home,” the UN chief said, calling for governments to also address the adverse impacts of climate change.
He also urged governments to ramp up and diversify supply chains for raw materials and renewable energy technologies while eliminating bureaucratic red tape around the energy transition.
“Every country is part of this energy crisis,” Guterres said.
The UN chief also said that the consequences of the Kremlin’s war have extended beyond a budding energy crisis and have also exacerbated global food insecurity and crippling debt around the world, but specifically in developing countries.
“Many developing countries drowning in debt, without access to finance and struggling to recover from the COVID-19 pandemic could go over the brink, Guterres warned. “We are already seeing the warning signs of a wave of economic, social and political upheaval that would leave no country untouched,” he added.
The U.N. chief announced the establishment of the Global Crisis Response Group aimed at coordinating global solutions to the triple crisis of food, energy and finance.
Guterres’ comments come as the first vessel carrying Ukrainian agricultural goods departs from the Black Sea, a significant step in addressing the mounting food crisis provoked by Russia’s naval blockade of Ukrainian ports sprinkled along the Sea of Azov and the Black Sea.
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