The Italian engineering group Maire is confronting one of its most challenging periods in recent years, as a multi-billion-dollar dispute with Russia’s “EuroChem Severo-Zapad 2”, a subsidiary of the Swiss-based fertilizer giant EuroChem Group AG, escalates into a broader threat to the company’s global operations and investor confidence.
Despite a $5 billion claim filed by EuroChem Severo-Zapad 2, pressure on Maire’s banking partners and a series of critical media reports, the company has remained largely silent. In recent weeks, its only public-facing comments have come from its legal counsel, Milo Molfa, during arbitration proceedings in London.
The dispute stems from the halted construction of the Kingisepp-2 ammonia and urea complex near St. Petersburg, Russia. The contract, signed in 2019 in the presence of Russian President Vladimir Putin and Italian Prime Minister Matteo Renzi, was valued at more than $1 billion, making it one of Maire’s largest projects in Russia. Initially expected to start up in 2024, the plant complex was designed to produce up to 1.1 million tonnes of ammonia and 1.4 million tonnes of urea per year.
Tecnimont, a Maire subsidiary, suspended its work in 2022 citing sanctions and regulatory restrictions. EuroChem argues that the problems predated sanctions and accuses the contractor of acting in bad faith. This disagreement now forms the core of the arbitration case under way in London.
At November hearing, Mr. Molfa accused EuroChem of attempting to disrupt the arbitration process by refusing to withdraw a claim that the court had already ordered the Russian side to remove. He also criticised what he called an “information campaign” targeting Maire in Russian media, saying that negative coverage was being amplified internationally and affecting the company’s share price.
Mr. Molfa warned that the dispute is beginning to resonate beyond the courtroom. According to him, the company’s international clients have raised concerns about whether Maire can continue fulfilling multibillion-dollar contracts in certain regions. Some partners fear that equipment already shipped could be intercepted by Russian authorities – a scenario that could jeopardize the execution of ongoing projects.
While Mr. Molfa did not name specific countries, industry observers note that Kazakhstan, given its economic and political ties with Russia, could be particularly vulnerable to any cross-border enforcement actions.
A separate legal battle is unfolding in Italy, where Maire has filed a defamation claim in a Rome court against EuroChem-related entities. The company says that EuroChem sent letters to 16 Italian banks urging them to halt credit lines for Maire projects, citing a temporary Russian court order and suggesting the Italian group could face insolvency.
Mr. Molfa emphasized that the Rome case concerns reputational damage, but acknowledged that such allegations carry significant weight in financial markets.
Meanwhile, on November 27th, the Moscow Arbitration Court in Russia ordered Maire to pay 171 billion rubles (over €2 billion), opening a new legal front alongside the ongoing proceedings in London and adding further pressure on the Italian group.
A day earlier, the Moscow Prosecutor’s Office, authorized to intervene in cases involving the public interest, said it had identified signs that the Italian side was attempting to evade its obligations and circumvent procedures linked to special economic measures against “unfriendly” states.
Maire’s decision to maintain silence outside the courtroom stands out. The company has long positioned itself as a reliable and technologically advanced global partner, and analysts say its muted response is unusual for a publicly listed group with obligations to inform investors about material risks.
If Maire continues to limit its public communication to statements made through its legal team, industry experts warn that uncertainty could grow among lenders, investors and clients, potentially amplifying the very risks the company is attempting to navigate.
Main Image via Maire: https://www.groupmaire.com/en/newsroom/media-kit/media-archive/images/page/1
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