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Italy seeks EUR 7 billion in compensation from ArcelorMittal

State-run Acciaierie d’Italia in Italy has filed a EUR 7 billion compensation claim against ArcelorMittal, the former owner of the steel giant Ilva in Taranto.

Italy seeks EUR 7 billion in compensation from ArcelorMittal

The commissioners of Acciaierie d’Italia, which operates Europe’s largest steel plant, have filed a EUR 7 billion compensation lawsuit against ArcelorMittal, citing past management failures at the troubled facility.

According to court documents reviewed by the Financial Times and submitted this month to a court in Milan, Acciaierie d’Italia — formerly known as ILVA — claims it suffered serious damage as a result of the policies implemented by ArcelorMittal while it was managing the plant. The filing alleges that ArcelorMittal “mismanaged” the company and caused ILVA to become financially weakened over the years.

The Taranto plant was placed under the control of state-appointed commissioners after the government of Prime Minister Giorgia Meloni took over control from ArcelorMittal nearly two years ago. Andrea Zoppini, the lawyer who brought the complaint to court, pointed to the findings of a forensic review carried out by the commissioners, stating that ILVA’s financial imbalances were “the result of a deliberate and clearly identifiable strategy aimed at the systematic and unilateral transfer of financial resources from the Italian subsidiary to the parent company.”

The lawsuit was formally served on ArcelorMittal on Monday. The Luxembourg-based steel group did not respond to requests for comment, while Acciaierie d’Italia’s management and lawyer Zoppini also declined to comment. The arbitration panel in Milan could not be reached.

The case is set to become one of the largest compensation claims ever brought in Italy. By contrast, ArcelorMittal filed an international arbitration case against Italy in Washington in July under the Energy Charter Treaty, arguing that the government’s seizure of ILVA was “unlawful.”

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