EuroChem seeks freeze on Italian firm Tecnimont accounts as Russian court orders 9.5-bn-ruble seizures
EuroChem North-West-2 LLC (EHNW-2), part of one of the world’s major mineral fertilizer groups, has formally approached 16 Italian banks requesting them to freeze the accounts of Italian engineering firm Tecnimont S.p.A. and its Russian subsidiary MT Russia LLC, the company said in a statement.
The request follows a 5 November 2025 ruling of the Moscow Arbitration Court that imposed interim measures and ordered asset seizures worth 9.5 billion rubles against the contractors. Writs of execution were issued on 10 November, according to EHNW-2.
The company said that across two parallel proceedings, it is seeking more than 202.7 billion rubles (about USD 2.5 billion) in claims.
Multibillion-ruble litigation
According to EHNW-2, the conflict stems from Tecnimont and MT Russia’s unilateral suspension of work in May 2022on a high-tech ammonia and urea plant in Kingisepp, Leningrad Region. The contractors completed only 25% of construction, despite fixed-price contracts signed in June 2020 that guaranteed completion by September 2023, the company said.
The contractors cited EU sanctions, but EHNW-2 alleges the restrictions were used not as a legal barrier but as “a tool to withdraw early from an unfavourable contract,” pointing to what it says were earlier attempts by Tecnimont to renegotiate price and deadlines.
Tecnimont has not issued public comments on the Russian litigation, and statements from the company could not be independently verified.
The dispute has expanded to include parent company Maire S.p.A.. EHNW-2 has filed a separate claim in the St. Petersburg and Leningrad Region Arbitration Court seeking 202.97 billion rubles, alleging breach of guarantee obligations and attempts to transfer assets.
Following an October 30 ruling, MT Russia notified EHNW-2 of the assignment of its claims to Tecnimont S.p.A.—a step EHNW-2 says it will challenge in court as a mechanism to avoid liability in Russian jurisdiction.
Regional partners express concern
The escalating litigation has raised alarms among Tecnimont’s international partners. On Nov 12, Kazakhstan’s KMG PetroChem LLP, which is jointly developing a gas-separation complex with Tecnimont, sent a letter to the company requesting urgent consultations, EHNW-2 said.
According to the letter cited by EHNW-2, KMG PetroChem warned that the Moscow court rulings could potentially be recognised in Kazakhstan, posing risks to ongoing projects. These concerns could not be independently confirmed.
Industry analysts say international contractors operating in sanctioned regions have increasingly faced disputes over project continuation, although each case hinges on contract specifics.
Broader Implications
EHNW-2 argues the case could set a precedent for contract enforcement under sanction pressure, especially in developing economies where public-sector infrastructure projects rely on foreign contractors. The company said Tecnimont’s disputes in Russia could undermine its work in other jurisdictions, including India, Nigeria, Algeria and Turkey.
The stalled plant in Kingisepp was designed to produce 1 million tonnes of urea annually, sufficient for 10 million hectares of farmland, according to company estimates. Analysts say the delay could heighten reliance on imported fertilizers at a time of price volatility.
EuroChem’s Official Position
“We are acting within the law and in accordance with international principles of good-faith contract performance,” an EHNW-2 spokesperson said.
“Sanctions do not cancel obligations—they merely change the conditions of their execution. Our appeal to the banks is not an attempt at pressure but a standard measure to ensure enforcement of court decisions.”
The company added that it is prepared to defend its interests “in all available jurisdictions, including those where Maire operates actively—in BRICS+, Africa, and Asia.”
Tecnimont’s Footprint in India
According to publicly available company and rating-agency disclosures:
Tecnimont operates through Tecnimont Private Limited and maintains a Project Office in India.
In Dec 2020, it secured an EPCC contract from Indian Oil Corporation Ltd. (IOCL) for acrylic acid and butyl acrylate units in Gujarat, estimated at USD 255 million.
In 2011, the Indian arm won about USD 440 million in turnkey EPC contracts for ONGC Petro Additions Ltd. in Dahej.
In 2024, Tecnimont and sister company NextChem inaugurated a green hydrogen plant for GAIL (India) Ltd.in Madhya Pradesh.
Maire and Tecnimont have not publicly commented on the Russian proceedings at the time of writing.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
