Lithuania’s foreign minister warned Thursday that a proposed windfall tax on energy companies could strain ties with Poland, whose energy group Orlen owns the Baltic states’ only oil refinery. Kęstutis Budrys told Žinių Radijas that Lithuania must weigh geopolitical consequences of taxing Orlen Lietuva, one of Poland’s biggest investments in the country, against the potential budget gains. Prime Minister Mindaugas Sinkevičius ordered ministers Wednesday to examine excess profits across the energy sector and present options by November 9. The move followed comments by Orlen chief executive Ireneusz Fąfara, who said further investment in the Mažeikiai refinery might not be economically justified. Polish news agency PAP reported that completing an upgrade could require another $600 million to $700 million. Orlen canceled a €1 billion modernization contract in 2025 amid delays. It says investment in the refinery has exceeded $5 billion since its 2006 acquisition, while cumulative profits totaled about $1 billion.
