Skip to content

Sanctioned Billionaire-Linked Firm Sues Italian Contractor and Its Banks

  • Eurochem, founded by Melnichenko, seeking €212 million
  • Melnichenko sanctioned by authorities in UK, EU and US
Andrey Melnichenko
Andrey Melnichenko

Photographer: Jason Alden/Bloomberg

Updated on

Maire Tecnimont SpA and two of its lenders could be on the hook for €212 million ($190 million) as a company linked to a sanctioned billionaire, Andrey Melnichenko, pushes for compensation over a giant construction project on hold since Russia invaded Ukraine.

EuroChem Group AG sued Societe Generale SA and ING Groep NV in London after the banks refused to pay a so-called performance bond provided as a guarantee by the Italian engineering group, according to court documents. The banks claim that they couldn’t make the payment because of European Union sanctions targeting Melnichenko and his wife, a shareholder via a trust that took over from the financier after the February invasion.