MAIRE unit wins arbitration case against Russia's EuroChem over fertiliser plant project

Societe Generale SA

31/08/2026 10:24

MILAN, Aug 31 (Reuters) - Italian engineering group MAIRE MTCM.MI said on Monday that its unit Tecnimont won a key ruling against Russian fertiliser producer EuroChem, with an international arbitration court finding that Tecnimont lawfully suspended execution of the K2 project to build a fertiliser plant in Russia after EU sanctions were imposed on Russia over its invasion of Ukraine.
The London-based tribunal also found EuroChem had wrongfully terminated contracts signed in 2020 for the construction of the fertilizer plant Kingisepp 2 (K2). 
It ordered EuroChem to pay about €260 million ($301.52 million) to Tecnimont for costs incurred on the project.
The court dismissed EuroChem's €1.6 billion counterclaim for indirect damages linked to the termination of the contracts.
It also ruled there was no legal basis for EuroChem to call performance bonds issued by Societe Generale SOGN.PA and ING INGA.AS.
The award is final and binding and confirms the tribunal as the sole body with jurisdiction over disputes regarding the K2 contracts, MAIRE said, adding it means decisions by other courts cannot be enforced where they conflict with the arbitration agreement.
The arbitration will now move to a second phase covering Tecnimont's requests for a permanent injunction against EuroChem's court proceedings in Russia and claims for legal costs and damages.

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 (Reporting by Claudia Cristoferi, editing by Susan Fenton)
 ((Claudia.Cristoferi@thomsonreuters.com; +39 06 80307733;))