EuroChem and Maire Tecnimont dispute contract termination
Maire Tecnimont accuses EuroChem of terminating their contract. The Italian company hopes that the international commercial court will take their side. EuroChem, in turn, insists on the fault of the contractor in terminating the contract.
The Tecnimont report says that EuroChem was notified of the suspension of the contract for the EXC3-2 project in May 2022. The reason was the impossibility of performing work due to the end of supplies of imported equipment and materials. In August last year, Tecnimont received a notice from EuroChem about the termination of contracts for the project due to their non-fulfillment. At the same time, a claim was filed against the contractor. At that time, engineering work had already been completed by 99%, construction work – by 31%, procurement of materials – by 92%. In general, the project was 70% ready.
The Italian company applied to the International Chamber of Commerce to acknowledge the fact that the customer unilaterally terminated the contracts. Tecnimont is demanding 400 million euros in compensation from EuroChem. In October, EuroChem, in turn, sent a counterclaim demanding compensation in the amount of 800 million euros. It’s expected that the court may file a decision on this issue no earlier than 2025.