EuroChem obtains temporary injunction from Bombay court prohibiting Tecnimont from withdrawing assets and cash
EuroChem Severo-Zapad-2 (ECSZ-2, part of the EuroChem group), has been given leave for proceedings to commence in the High Court of Bombay, India, in its lawsuit against Italy's Tecnimont S.p.A. and Tecnimont's Russian subsidiary, MT Russia, RBC reports.
The lawsuit is based on an alleged breach of contract for the construction of an ammonia and urea production complex in Kingisepp, Leningrad Region, with a total annual capacity of 2.5 million tonnes. Despite a corresponding interdiction by the High Court of London, EuroChem is seeking, as a precautionary measure, enforcement of a Russian court ruling on seizure of Tecnimont's assets abroad, in countries where the Italian company operates.
At its January 2026 hearing, the Bombay High Court accepted a legally binding commitment from Tecnimont not to withdraw any assets or block enforcement of the Russian court ruling. The Italian company also committed to maintaining the status quo with regard to cash funds other than for normal business activities. Oral hearing ended on 11 February, and the court will pronounce later. Until such pronouncement, Tecnimont's undertaking not to withdraw any assets remains in force.
EuroChem Severo-Zapad-2 and Tecnimont signed contracts in 2020 for construction of the Kingisepp plant worth approximately RUB 125 billion on fixed-price terms and with a guaranteed completion date. The launch of the main facilities and initial production were planned for September 2023, but the contractors unilaterally suspended construction in the spring of 2022, citing sanctions risks.
EuroChem stated that it considered the sanctions to be a "convenient excuse" for terminating the contract, claiming that the Italian contractor was seriously behind schedule, and demanded an increase in the contract price and an extension of the deadlines. As a result, the contractors announced their intention to terminate the contracts and demanded compensation from the client, while ECSZ-2, in turn, itself announced the termination of the contracts, demanding reimbursement of an unearned advance payment, loss compensation, and penalties for delay totalling €1.6 billion.
The further timeline of the dispute went as follows:
● Tecnimont referred the matter for arbitration by the International Chamber of Commerce (ICC) in London, as provided for in the contracts.
● ECSZ-2 filed counterclaims with the ICC.
● ECSZ-2 initiated proceedings in the Moscow Arbitrazh (Commercial) Court, demanding almost RUB 203 billion from the Italians. On 27 November 2025, the court upheld the claims, ordering the contractors to pay more than RUB 171 billion.
● The Italian side attempted to constrict ECSZ-2's right to continue legal proceedings in Russia by filing a petition with the High Court of England and Wales. In November 2025, the court ruled in its favour.
● The Russian company, in turn, petitioned the Arbitrazh (Commercial) Court of St. Petersburg and Leningrad Region, which prohibited Tecnimont and MT Russia from continuing the international arbitration proceedings in London.
● This January, the London High Court of Appeal upheld the first instance decision to prohibit the proceedings in Russia, while ECSZ-2 announced its intention to defend its interests in Russian courts, since under Russian law, disputes related to the application of foreign sanctions fall under the "exclusive jurisdiction" of local arbitrazh (commercial) courts.
Following the Moscow Arbitrazh (Commercial) Court ruling on seizure of Tecnimont and MT Russia's assets, the key issue is now its enforcement abroad. ECSZ-2 is seeking recognition and enforcement of the court ruling in foreign jurisdictions, including India and Malaysia, where the assets of Maire, Tecnimont's parent company, are located.