Russian court orders Tecnimont to pay EuroChem $2.19 billion in escalating contract dispute

A Russian court has ordered Italy’s Tecnimont to pay fertiliser giant EuroChem more than 171 billion roubles, about $2.19 billion, after a bitter dispute over a stalled industrial project in the Leningrad region. The ruling marks one of the largest corporate judgments issued in Russia this year and deepens a conflict that is also playing out in international arbitration.

EuroChem North-West-2, a subsidiary operating the project, accused Tecnimont and its Russian unit of failing to deliver on a 2020 contract to build a new ammonia and urea production plant in the town of Kingisepp. The company had sought more than 202 billion roubles in damages.

A legal fight moving through Russian courts and international arbitration

EuroChem said it welcomed the court’s decision and stressed that its priority now is to finish construction and bring the plant online. Tecnimont’s parent, Maire SpA, offered a sharply different response. The Italian group said it would challenge what it described as “unlawful actions” by EuroChem and confirmed it is pursuing more than 700 million euros in damages before judicial authorities and international arbitration panels.

The conflict dates back to 2020, when EuroChem signed contracts with Tecnimont to complete the plant by September 2023. However, the contractors halted work in 2022 as Western sanctions disrupted logistics, procurement and engineering operations linked to the project. Maire noted in its 2024 annual report that the geopolitical crisis made it nearly impossible to secure key industrial equipment.

EuroChem terminated the contracts that summer, accusing the companies of non-performance. The dispute quickly expanded beyond Russian courts, with the International Court of Arbitration examining counterclaims from both sides since 2022. The Russian ruling adds a new layer of pressure to a case that continues to unfold across multiple legal arenas.