Despite recent reports about a possible halt to its activities, the Italian company TECNIMONT, part of the MAIRE group, confirms that its projects in Kazakhstan are continuing without any interruption. The clarification comes from the company itself in an official statement released after a decision by a Russian court that brought renewed attention to the legal dispute with EuroChem NW2.

The dispute with EuroChem

The case stems from the “K2” contracts, related to the construction of major industrial facilities. In 2022, MAIRE TECNIMONT temporarily suspended some activities due to international sanctions against Russia. Subsequently, EuroChem NW2 decided to unilaterally terminate the contracts, prompting MAIRE TECNIMONT to initiate international arbitration proceedings and claim damages exceeding 700 million euros.

Complicating the situation further, recent reports indicated that a Russian court had partially upheld a claim filed by an EuroChem subsidiary against the Italian company.

“The Russian decision has no impact on our projects”

In its statement, TECNIMONT specifies that the ruling of the Russian arbitration court has no effect on the projects underway in Kazakhstan, because decisions issued by Russian courts cannot be enforced outside Russia, in accordance with the 1958 New York Convention, recognized by more than 170 countries, including the CIS and BRICS nations.

Furthermore, the international arbitration tribunal has already issued an order prohibiting EuroChem from pursuing parallel proceedings in Russia that violate the contractual arbitration agreements.

Billion-dollar projects in Kazakhstan

TECNIMONT is currently involved in two major projects in the Central Asian country:

  • the construction of the Tengiz gas separation complex;
  • a polyethylene production plant with a total value exceeding 10 billion dollars.

Both initiatives, the company confirms, are progressing regularly.


Sources