While the American public remains preoccupied with domestic political issues, Europe is watching with growing concern a major corporate conflict that could have serious repercussions for the industrial sector. Italian engineering group Tecnimont S.p.A. and its parent company, Maire, have been locked for several months in multi-billion-dollar litigation with a subsidiary of Swiss-based EuroChem, the world’s fourth-largest fertiliser producer, namely the Russian company EuroChem Severo-Zapad-2. The situation is becoming increasingly complex, particularly as it has emerged that the Italian company’s partners and investors were not fully informed of the scale of the risks at an early stage.
According to Italian media reports, the dispute between EuroChem Severo-Zapad-2 and the contractors responsible for building a chemical plant in Kingisepp, Russia, arose after Tecnimont S.p.A. and its Russian subsidiary MT Russia unilaterally suspended construction work in May 2022, despite contractual obligations to complete the project. EuroChem Severo-Zapad-2 subsequently terminated the contracts. “While in the West Tecnimont is protected by a sanctions shield, in Russia it is simply regarded as a defaulting contractor,” the Italian publication Scenarie Economici noted.
By December, European media had begun to raise alarms, warning that penalties imposed by Russian arbitration courts and the freezing of accounts belonging to Tecnimont S.p.A. and its parent company Maire could lead not only to the suspension of ongoing projects, but potentially to bankruptcy. At the same time, the Italian engineering group largely refrained from public comment and did not disclose the scale of the court claims in its regular reporting to shareholders and investors.
Moreover, the company had previously stated publicly that decisions of Russian courts have no legal consequences outside the Russian Federation and therefore pose no risk to the group. This position was reiterated in Maire’s official press release dated December 22, 2025, which asserted that no jurisdiction outside Russia would recognise EuroChem Severo-Zapad-2’s claims. In an interview with Milano Finanza, Maire sought to reassure markets and investors, saying its position was protected by both law and market practice. The company cited the 1958 UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), as well as a decision by Judge Butcher on November 21, 2025, which imposed restrictions on pursuing legal proceedings outside London.
However, following the decision of the Bombay High Court in Mumbai to open proceedings related to the attachment and recovery of 171 billion roubles (approximately $2.2 billion) from Tecnimont, the group’s rhetoric changed abruptly. In filings submitted to the English court, Maire’s lawyer openly described the situation as an “existential threat” to the group, warning of extremely severe consequences should EuroChem prevail. Court documents and accompanying witness statements detail the scale of the alleged damage caused by attempts to enforce Russian court rulings, estimating total potential losses at approximately $3.1 billion.
Applications to UK courts are not unusual in international EPC disputes. In this case, however, the decisive factor was the set of circumstances that forced the contractor to seek such protection. The conflict had taken on a global dimension: on December 22, 2025, EuroChem Severo-Zapad-2 filed an application for interim measures with the Bombay High Court and clearly signalled its intention to pursue similar actions in other jurisdictions. As a result, Tecnimont faced the immediate risk of asset enforcement abroad, giving the dispute particular urgency.
This raised an obvious question: were these risks not apparent earlier? According to court filings, MT Russia has effectively lost its ability to conduct normal operations. All of the company’s bank accounts are frozen, court-imposed penalties (astreinte) have reached approximately $940 million, and MT Russia was unable to pay employee salaries for December 2025 because banks refused to process payments without court authorisation. Witness testimony also acknowledges a threat to the financing of the Maire group as a whole.
After EuroChem Severo-Zapad-2 notified 16 Italian banks of Russian court rulings involving Maire S.p.A., the group’s credit lines — worth billions of dollars — were called into question. In court documents, these actions are described as an attempt to “choke off” the group’s financing. EuroChem Severo-Zapad-2, however, has maintained a consistent position throughout the dispute. “We have consistently pointed out that decisions of Russian courts are legal facts that carry legal consequences outside the Russian Federation,” the company said.
Recent developments have brought further setbacks for Maire and a significant interim victory for EuroChem Severo-Zapad-2. On January 13, the Bombay High Court considered EuroChem’s application for interim relief in connection with the recognition and enforcement of a Moscow Arbitrazh Court decision ordering the recovery of more than $2.2 billion from Tecnimont S.p.A. During the hearing, the court accepted the claimant’s arguments and ordered Tecnimont to refrain from actions that could hinder enforcement, including withdrawing assets from India or transferring funds outside the scope of ordinary business operations. The next hearing is scheduled for January 19, 2026.
Experts interviewed by our editorial team believe the outcome of the dispute will demonstrate not which court system is stronger or more legitimate, but how effectively companies can protect assets in today’s global legal environment. When large sums are at stake, they note, all available legal options tend to come into play.
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