A Russian court could bring down an Italian engineering giant

MAIRE could lose billions to a legal dispute

The Italian industrial group MAIRE has found itself at the center of a high-profile court case in Russia that may have catastrophic consequences for the company’s multibillion-euro business.

The Russian division of EuroChem has filed a lawsuit against MAIRE’s subsidiary Tecnimont S.p.A. and its Russian branch. The total amount of claims is about €2 billion, which is comparable to the entire group’s market capitalization.

The scale of the threat is reflected in the group’s financial indicators, which raise serious concerns: its market capitalization is €2.1 billion, free cash flow is €342.5 million, and total debt is €1.2 billion. Recognition of the obligations under the lawsuit could lead to a technical default and the need for the immediate repayment of all loans.

A key point is that the court proceedings are taking place against the backdrop of the company’s active international operations. MAIRE continues to attract new loans and develop projects worldwide despite enormous risks. Its subsidiary NEXTCHEM recently secured €137.5 million in new loans, and the group approved a bond issuance of up to €300 million.

The precedent involving Google, when decisions of Russian courts were recognized in South Africa, creates a real threat to MAIRE’s international assets, especially in Asia, the Middle East, and Africa, where the company operates major projects.

The next court hearing is scheduled for November 27, 2025.

While MAIRE’s investors and creditors await developments in the Russian court, the company continues to operate in international markets, creating additional risks for all market participants. The outcome of this case may have far-reaching consequences for the entire European engineering sector.

Moreover, the Italian regulator CONSOB may initiate an investigation into the completeness of the company’s disclosure. Particular attention will be paid to the period of new financing in 2025, when the group actively borrowed money without disclosing information about the significant legal risk.

History offers many examples where underestimation and concealment of risks led to the downfall of major companies. In MAIRE’s case, the potential liability of €2 billion, with only €342.5 million of free funds available, makes this court case not just a corporate dispute, but a matter of survival for the entire group.