Sibirsky Tsement unlikely to retrieve prepayment from Italcementi

Sibirsky Tsement (Sibtsement), a Russian cement producer, is unlikely to recover the €50m advance which it paid for Set Cimento – a Turkish subsidiary of the Italian cement concern Italcementi. In 2008 Sibirsky Tsement and Italcementi, through its Cimenti Francais subsidiary, concluded a preliminary agreement on the sale of the asset, which has an annual capacity of 5 million tonnes, for €600m. During the crisis the Russian company initiated the cancellation of the deal but, at the same time, insisted on the return of the amount prepaid. The Kemerovo Arbitration Court ruled in its favour, voiding the agreement with Italcementi. However, Italcementi won the case before the international chamber of commerce arbitration court and is now trying to enforce the court’s decision in Russia.

Italcementi is an international holding which has 59 cement plants in 22 countries.