The opening of proceedings before the Bombay High Court fits into a broader trend in which courts in BRICS countries are admitting or assessing the recognition and enforcement of judicial decisions originating from the Russian Federation. Previously, a court in the Republic of South Africa had given effect to a decision issued by the Arbitration Court of Moscow against Google, paving the way for the recovery of sums linked to the insolvency proceedings of the group’s Russian subsidiary. With the initiative launched in India, this therefore represents the second instance in which a court in a BRICS country has recognized, or is considering the recognition of, the effectiveness of Russian judicial rulings in an international context.
The Bombay High Court has admitted proceedings brought by EuroChem North-West-2 seeking the recognition and possible enforcement of foreign judicial decisions against Tecnimont S.p.A., a company belonging to the MAIRE Group. This initiative formally opens the review of the dispute within the Indian jurisdiction and represents a further significant development in a dispute that has now expanded on a transnational scale.
The proceedings before the Bombay court form part of the broader framework of decisions already issued by courts of the Russian Federation in relation to the K2 project, concerning the construction of an ammonia and urea plant in Kingisepp, in the Leningrad Region. In this context, Russian courts have found Tecnimont responsible for the unilateral interruption of the works and have reaffirmed the validity of the contractual obligations undertaken toward EuroChem.
In particular, the Moscow Arbitration Court largely upheld the claims brought by EuroChem North-West-2, ordering Tecnimont S.p.A. and its subsidiary MT Russia LLC to pay 171 billion rubles (approximately €2.2 billion). The court ruled out that the suspension of activities could be classified as a general force majeure event or could automatically result in the termination of contractual obligations, instead recognizing that the interruption of the project caused significant industrial, operational, and financial damage, also in light of the investments already made and the strategic nature of the facility.
A further order, issued by an arbitration court in Saint Petersburg, strengthened EuroChem’s position by requiring Tecnimont and MT Russia to cease the arbitration proceedings initiated before the International Chamber of Commerce in London. According to the court, the continuation of the foreign arbitration would constitute a violation of Russian jurisdiction and public policy principles in a context directly affected by the international sanctions regime. Failure to comply with the order could result in the application of a penalty of up to 78 billion rubles, in addition to further asset protection measures.
The extension of the dispute to additional non-European jurisdictions introduces elements of potential relevance from a financial, operational, and disclosure perspective. Given the magnitude of the sums involved and the possible impact on assets and business activities, the evolution of the proceedings presents matters of interest for the market and for investors.
Taken as a whole, the decisions confirm EuroChem as the injured party, reaffirm the principle of contractual liability, and highlight the legal risks associated with the unilateral suspension of strategic industrial projects in complex geopolitical contexts. EuroChem has reiterated its intention to fully enforce the decisions obtained and to protect its economic and industrial interests before the competent authorities, in accordance with the applicable legal framework.
