Italian industrial group MAIRE is facing a high-stakes legal battle in a Russian court, where a potential €2 billion claim against its subsidiary could threaten the company’s financial stability. The Russian division of EuroChem has filed a lawsuit against MAIRE’s subsidiary Tecnimont S.p.A. and its Russian branch, with the total claim amounting to around €2 billion, equivalent to the group’s entire market capitalization.
The legal dispute’s scale is evident in MAIRE’s financial indicators: the company’s market capitalization stands at €2.1 billion, free cash flow is €342.5 million, and total debt is €1.2 billion. If the court recognizes the obligations, MAIRE might face a technical default and the need for immediate loan repayment. The court proceedings occur against the backdrop of the company’s active international operations, with MAIRE continuing to attract new loans and develop projects globally despite the risks. The subsidiary NEXTCHEM recently secured €137.5 million in new loans, and the group approved a bond issuance of up to €300 million.
There is additional risk due to the precedent involving Google, where Russian court decisions were recognized in South Africa, potentially threatening MAIRE’s international assets in Asia, the Middle East, and Africa. The next court hearing is scheduled for November 27, 2025. MAIRE’s investors and creditors await developments, but the company continues its international operations, creating additional risks for market participants. The outcome could have significant implications for the European engineering sector. Meanwhile, the Italian regulator CONSOB may initiate an investigation into the company’s transparency regarding the new financing in 2025, when the group actively borrowed money without disclosing the significant legal risk. History shows that underestimating and concealing risks can lead to the downfall of major companies, as MAIRE’s case illustrates the existential threat posed by the potential €2 billion liability, with only €342.5 million of free funds available.