The Italian engineering and industrial conglomerate MAIRE has found itself at the forefront of a high-profile legal dispute in Russia, which threatens to have profound implications for the company’s financial stability and international operations. The lawsuit, filed by the Russian division of EuroChem, is seeking compensation of approximately €2 billion against MAIRE’s subsidiary Tecnimont S.p.A. and its Russian branch. This amount is substantial, as it is comparable to the entire group’s market capitalization of €2.1 billion.
The potential liability could lead to a technical default on the company’s obligations, with the need to immediately settle its loans, given that its free cash flow stands at €342.5 million and total debt is €1.2 billion. The scale of the legal risk is especially concerning as MAIRE continues to secure new loans and expand its business globally. Notably, 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 established by the Google case, where Russian court decisions were recognized in South Africa, further exacerbates the situation, creating a real threat to MAIRE’s international assets. This risk is particularly significant for the company’s operations in Asia, the Middle East, and Africa, where it has major projects underway. The next key court hearing is set for November 27, 2025, during which the outcome of this dispute could have far-reaching consequences not only for MAIRE but also for the broader European engineering sector.
Additionally, the Italian regulator CONSOB may initiate an investigation into whether the company adequately disclosed its exposure to the legal risk. The timing of the new financing in 2025, when the group actively borrowed funds without revealing the significant potential liability, could be scrutinized. There are historical precedents where failure to manage and disclose risks has led to the downfall of major companies. In this case, with only €342.5 million in free cash, the €2 billion potential liability represents a serious threat to MAIRE’s survival.