7 months ago
EuroChem Seeks $2.2B Asset Seizure from Italian MAIRE in India
A Russian company called EuroChem is asking an Indian court to help them get $2.2 billion from an Italian company called MAIRE.
This is because MAIRE stopped building a big plant in Russia that they had agreed to build.
The plant was supposed to make ammonia and urea, which are important for farming.
MAIRE said they stopped because of rules from the European Union, but EuroChem says they should still pay.
The Indian court is going to decide if EuroChem can take some of MAIRE's things in India to get their money back.
This could affect some of MAIRE's projects in India.
EuroChem's Russian unit seeks to enforce a $2.2 billion court order against MAIRE Group in India.
The dispute stems from MAIRE's withdrawal from a plant construction project in Russia, citing EU sanctions.
The Bombay High Court will hear the case on January 13, with potential impact on MAIRE's Indian assets.
MAIRE's assets in India include shares, receivables, loans, and contractual payments with Indian clients.
EuroChem plans to pursue similar actions in other jurisdictions where MAIRE operates.
- Who
- EuroChem SeveroZapad-2 (ECSZ-2) and MAIRE Group (Tecnimont SpA, MT Russia)
- What
- Legal dispute over unfulfilled contract and asset seizure
- Where
- Bombay High Court, India; project in Kingisepp, Russia
- When
- Hearing scheduled for January 13; dispute arose in May 2022
- Why
- MAIRE withdrew from the project citing EU sanctions, EuroChem seeks compensation
Key facts
- Amount in Dispute
- 171 billion rubles ($2.2 billion, Rs 19,000 crore)
- Companies Involved
- EuroChem SeveroZapad-2 (ECSZ-2), Tecnimont SpA, MT Russia
- Project Location
- Kingisepp, Leningrad Region, Russia
- Contract Completion Deadline
- September 2023
- Construction Completion at Withdrawal
- 25%
- MAIRE Assets in India
- 100% shares in Tecnimont Pvt. Ltd, receivables, loan claims, cash, contractual payments
- Hearing Date
- January 13
Quotes
MAIRE Group
An Italian industrial group involved in the legal dispute with EuroChem SeveroZapad-2
“MAIRE will continue to respond firmly to protect its own rights and await a resolution of the proceedings before the London Arbitral Tribunal, which is expected in 2026.”
thehindubusinessline.com
Sources
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