The Amsterdam court seized 100% of the shares of EuroChem Group, which is owned by Russian billionaire Andrey Melnichenko, following a claim by Avtodorkomplekt, a bankrupt granite producer from Zaporizhzhia, seeking damages amounting to €910 million as a result of the war. Earlier, he had attempted to seize in the Netherlands assets of Gazprom’s structures, but was unsuccessful.
Key points of the Amsterdam court’s ruling
According to Avtodorkomplekt, the war unleashed by Russia deprived the company of the ability to mine granite, and its property was expropriated. In July of last year, the Ukrainian company filed a lawsuit against more than 30 Russian and European companies, including EuroChem Group and its controlled EuroChem International Holding.
The plaintiff argues that the Russian company voluntarily, directly and actively financed and provided material and technical support for Russia’s invasion of Ukraine. As a result, the Amsterdam court found the claims well founded, and consequently 100% of EuroChem Group’s shares and €556,700 on the company’s account at ING Bank were seized.
Sanctions context regarding Melnichenko
On 9 March 2022, the European Union imposed sanctions on Melnichenko as one of the Kremlin’s closest businessmen responsible for the Russian invasion. The sanctions provide for asset freezes, a ban on entry to the EU, and a ban on financing by European entities. On 12 March Italy seized the largest sailing yacht ‘A’ valued at about €530 million, belonging to Melnichenko.
On 15 March sanctions against Melnichenko were introduced by the United Kingdom, and the following day – Switzerland. However, the restrictions did not extend to the businessman’s wife, daughter, and son. After investigations lasting several weeks, Swiss authorities allowed their companies to continue operating in the same regime as before. Financial regulators in the United Kingdom and Germany reached similar conclusions regarding this case.
Consequences for EuroChem and related structures
The court’s decision and the sanctions have serious implications for the EuroChem Group’s business and related structures. In the context of the Avtodorkomplekt case, the matter highlights risks to international assets during armed conflicts and is subject to further legal steps by creditors and regulators in different jurisdictions.