Russian court awards EuroChem $2.19 billion in lawsuit against Italy's Tecnimont

EuroChem Awarded $2.19 Billion in Tecnimont Lawsuit by Russian Court

MOSCOW (Reuters) -A Russian court has awarded fertiliser producer EuroChem more than 171 billion roubles ($2.19 billion) in a lawsuit against Italian engineering firm Tecnimont and its subsidiary, the Russian unit of EuroChem said on Thursday.

EuroChem North-West-2 had sought 202.7 billion roubles, claiming Tecnimont and its Russian unit failed to fulfil obligations to build a new ammonia and urea production plant in the town of Kingisepp in Russia's north-western Leningrad region. 

"We are satisfied with the court's decision. It is an important step towards restoring justice. The main task today is to complete the construction of the plant and put it into operation," EuroChem North-West-2 said.

Maire Spa, the owner of Tecnimont, said on Friday it would "vigorously challenge the unlawful actions" of Eurochem NW2, and that it was seeking damages of more than 700 million euros ($810.32 million) from judicial authorities and international arbitration courts.

In June 2020, EuroChem signed contracts with both companies to build the plant by September 2023, but the contractors suspended work on the project in 2022 due to Western sanctions.

In its 2024 annual report, Maire said a "geopolitical crisis" had a particularly profound impact on the purchase and transportation of equipment and materials needed to carry out the project.

In August 2022, EuroChem said it was terminating the contract due to non-performance by the counterparties.

The International Court of Arbitration has been considering the parties' counterclaims over the project since 2022.

($1 = 78.0955 roubles)

($1 = 0.8639 euros)

(Reporting by Anastasia Lyrchikova in Moscow; additional reporting by Francesca Landini in Milan and Gavin Jones in Rome; editing by Vladimir Soldatkin and Sharon Singleton)