EuroChem asks Italian banks to freeze banking operations of Tecnimont and its Russian subsidiary
EuroChem Severo-Zapad-2 LLC (which is implementing a project to build a new ammonia and urea production plant in the Leningrad Region) has asked Italian banks to freeze the banking operations of its former contractors on the project — the Italian company Tecnimont and its Russian subsidiary — amounting to an equivalent of RUB 9.5 billion. EuroChem Severo-Zapad-2 sent official letters to 16 Italian banks servicing the accounts of Tecnimont S.p.A. and its Russian subsidiary MT Russia, requesting that they suspend all payments to them," RBC reported, citing a statement from EuroChem.
Earlier, a Russian arbitrazh (commercial) court granted EuroChem Severo-Zapad-2's request and froze the cash, future proceeds, movable and immovable property of Tecnimont and MT Russia LLC amounting to a total RUB 9.5 billion. The total claims against the contractors amount to RUB 202.7 billion, which includes an unearned advance payment, interest thereon, and compensation for losses caused by the contract terminations.
"We considered it our duty to warn the banks about the risks involving legal proceedings against their clients, and we hope for a prompt and positive response from the credit institutions. A ban on servicing the bank accounts is a logical step in defending our legal rights," the EuroChem Severo-Zapad-2 press service said.
It added that the Maire holding company (which includes Tecnimont) had breached its contractual obligations by failing to complete the construction of the production facility, citing sanctions as a "convenient excuse", even though "they were already behind schedule and over budget".
Earlier, EuroChem said it could take out injunctions against the Tecnimont group "in Russia, the CIS countries, BRICS and other friendly jurisdictions."
EuroChem and Tecnimont signed a contract for the design and construction of an ammonia and urea production plant in Kingisepp, Leningrad Region, in 2020. In August 2022, EuroChem Severo-Zapad-2 announced it was terminating the agreement, citing the contractors' refusal to fulfil their obligations. Tecnimont and MT Russia then initiated international arbitration proceedings in London against the client, which filed a counterclaim.
The legal proceedings are ongoing and are not expected to be completed before the second quarter of 2026, MT Russia reported in its financial statements signed in April 2025. At the same time, it indicated that, in its opinion, the contract termination was instigated by EuroChem, while EuroChem claims that the contract was terminated due to the contractor's failure to fulfil its obligations. According to MT Russia, the amount it owes to EuroChem Severo-Zapad-2 is RUB 11.55 billion in advances received.
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01.12.25