In a major international legal battle with significant implications for India, the Russian subsidiary of Swiss fertilizer giant EuroChem has approached the Bombay High Court. The firm is seeking to seize assets worth a staggering $2.2 billion (approximately Rs 19,000 crore) belonging to the Italian engineering group MAIRE.
The Core of the Legal Dispute
The case stems from a failed industrial project in Russia. EuroChem SeveroZapad-2 (ECSZ-2) filed the application seeking recognition and enforcement of an order from the Moscow Arbitration Court. This Russian court had ruled in November in favour of ECSZ-2, directing Italian firm Tecnimont SpA and its Russian subsidiary MT Russia—both part of the MAIRE Group—to jointly pay over 171 billion rubles.
The dispute originated from a contract for building one of Europe's largest ammonia and urea production plants in Kingisepp, located in Russia's Leningrad Region. According to ECSZ-2, MAIRE's companies failed to fulfil their obligations. The Russian firm claims that in May 2022, MAIRE withdrew from the project, citing the enforcement of EU sanctions against Russia as the reason.
ECSZ-2 contested this withdrawal, leading to the lawsuit in Moscow. The company stated that construction was only 25 per cent complete at the time of abandonment, despite the contract stipulating completion by September 2023. The Moscow court awarded the unearned advance, interest, and damages for the project's disruption.
Why the Bombay High Court is Involved
The appeal to the Indian jurisdiction is a strategic move by the Russian company. ECSZ-2 cited the bilateral treaty on legal assistance in civil and commercial matters between Russia and India, dated October 3, 2000. This treaty provides a framework for the mutual recognition and enforcement of court decisions between the two nations.
"The legal proceedings in India represent a logical and consistent step in implementing our legal strategy aimed at ensuring enforcement of Russian court decisions in jurisdictions where the MAIRE group conducts its operations," ECSZ-2 said in a statement.
The company has indicated it is exploring similar legal actions in other jurisdictions where MAIRE operates, including CIS countries, BRICS nations, Africa, and the Middle East.
Indian Assets in the Crosshairs
The specific assets targeted for seizure in India are substantial and could impact ongoing projects. The list identified by ECSZ-2 includes:
- 100 per cent of shares in the Indian subsidiary, Tecnimont Pvt. Ltd (TCMPL).
- TCMPL's receivables from its parent company, worth about 23 million euros.
- Claims under a long-term interbank loan favouring TCMPL, exceeding 18.7 million euros.
- Cash held in accounts at Indian banks.
- Payments due under major Engineering, Procurement, and Construction (EPC) contracts with prominent Indian clients like Indian Oil Corporation Ltd (IOCL) for projects in Gujarat and Odisha.
If the Bombay High Court grants the relief sought, it could directly affect assets based in India and disrupt contractual payments linked to major projects the MAIRE Group is currently executing for Indian public and private sector companies.
The High Court has already accepted the Russian company's application for consideration. The substantive hearing in this high-stakes international case is scheduled for January 13, 2026. The outcome will be closely watched by the global business and legal community, testing the mechanisms of international treaty enforcement in Indian courts.
