Summary

Introduction

1. Anti-suit injunctions are a discretionary remedy granted under s. 37 of the Senior Courts Act 1981 to restrain a party over whom the court has jurisdiction from commencing (or continuing) foreign proceedings, where it is necessary in the interests of justice to do so. They carry penal notices confirming, amongst other things, that a respondent who fails to comply may be held to be in contempt of court. They are a powerful tool in the court's armoury and have long been sought and granted in order to protect and uphold English jurisdiction and arbitration agreements.

2. This appeal relates to an anti-suit injunction obtained by the Respondent, LLC EuroChem North-West-2 ("EuroChem NW") against the Appellants, Tecnimont SPA ("Tecnimont") and LLC MT Russia ("MT Russia"), by order of Bryan J on 23 August 2022 (continued by order of HHJ Pelling KC on 6 October 2022) ("the ASI"). In broad terms, the ASI prohibited the Appellants from commencing or pursuing any foreign claims or proceedings for the purpose of restraining, delaying or otherwise impairing payment of certain bonds (other than with the written consent of EuroChem NW or further order).

3. Following a hearing on 2 March 2023, Henshaw J ("the Judge") ruled on 6 March 2023 that Tecnimont had acted in breach of the ASI by applying to intervene in proceedings in the Regional Administrative Court of Lazio between EuroChem Agro SpA ("EuroChem Agro") and the Italian Ministry of Economy, Treasury Department, Financial Security Committee (and others) ("the Italian Proceedings"). He also declined to vary the ASI so as to permit Tecnimont to pursue such intervention.

4. On this appeal, Tecnimont challenges both the Judge's finding of breach and the refusal to vary.

Background facts

5. EuroChem NW, a Russian company, and EuroChem Agro, an Italian company, are subsidiaries of EuroChem Group AG ("Eurochem AG"), a Swiss fertilizer producer.

Tecnimont, an Italian company, and MT Russia, a Russian company, are subsidiaries of Maire Tecnimont SPA, another Italian company.

6. In June 2020 EuroChem NW engaged the Appellants as offshore and onshore engineering, procurement and construction contractors on the development of the "North-West 2" ammonia and urea production plant in Kingisepp, Russia ("the Project"). The relevant (three) contracts were as follows: a Coordination and Interface Agreement between EuroChem NW and Tecnimont and MT Russia; an Offshore Engineering and Procurement Contract between EuroChem NW and Tecnimont; and an Onshore Engineering, Local Procurement and Construction Contract between EuroChem NW and MT Russia ("the Contracts"). All were subject to materially identical London (ICC) arbitration clauses ("the London arbitration clauses"). (The arbitration clause in the Coordination and Interface Agreement was at Clause 7.5; in the other two contracts it was at Clause 21.3.)

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