Eurochem Group company demands over RUB 200bn from Tecnimont subsidiary
Eurochem North-West-2 LLC has filed a claim in the Moscow Arbitrazh (Commercial) Court against MT Russia LLC (a subsidiary of Italian engineering company Tecnimont) for the recovery of RUB 202.7bn. The claim was accepted for proceedings on 4 September, according to the court's electronic filing system.
The Tecnimont parent company is involved as a third party. The preliminary court hearing is scheduled for 27 October. Details of the claims are not yet known.
In 2020, EuroChem and Tecnimont signed a contract for the design and construction of an ammonia and urea plant in Kingisepp, Leningrad region. In August 2022, Eurochem North-West-2 gave notice of termination of the contract, alleging that the contractors had refused to fulfil their obligations. Following this, Tecnimont and MT Russia initiated international arbitration proceedings in London against the client, who, in turn, filed a counterclaim. The proceedings are ongoing and are not expected to be finalised until second quarter 2026, MT Russia said in its April 2025 financial statements. At the time, it indicated that it believed the contract was terminated at Eurochem's initiative, while Eurochem claimed that the contract was terminated due to the contractor's failure to fulfil its obligations. According to MT Russia, it owes Eurochem North-West-2 RUB 11.55bn (in advances received).
Initially, EuroChem North-West-2 requested the Moscow Arbitrazh (Commercial) Court to seize up to €1bn cash on MT Russia's bank accounts. The court partially granted Eurochem's request in February 2024, seizing EUR 380 million. However, after an international arbitration court in June 2024 ordered Eurochem to request the Moscow court to lift the interim measures, the company did so. As the Moscow Arbitrazh (Commercial) Court noted in its July 2024 ruling on the lifting of the interim measures, while the Russian court is in no way subject to the jurisdiction of the international arbitral tribunal, in this case the applicant itself indicated its recognition of the international tribunal's jurisdiction and its intention to comply with the tribunal's ruling and follow its rules.
MT Russia LLC has been operating since 2007. Its revenue in 2024 was RUB 3.3bn (down 60% from 2023), and its net losses were RUB 190m. The company's beneficial owner is Italian national Fabrizio Di Amato, according to its statements.