Brazil Lifts Two-Year Ban on Italy's Saipem Business Units

18 Oct, 2024

Brazil's Federal court has annulled a two-year ban on Saipem’s two business units, which had prevented them from contracting with the Brazilian public administration. The ban was originally imposed due to alleged irregularities in a 2011 gas pipeline contract. The court ruled in favor of Saipem, upholding the grounds of appeal presented by the company’s legal defense.

The ban was related to accusations surrounding the awarding of a contract for gas pipelines in 2011. The court decision now nullifies this administrative measure, meaning Saipem’s two business units, Saipem SA and Saipem do Brasil, can resume operations, pending further legal proceedings.

Under Brazilian law, while this ruling overturns the ban, it is subject to an appeal. During this appeal phase, the effects of the annulment ruling remain temporarily suspended. Saipem has indicated that both units will continue to pursue all necessary steps to protect their interests in the ongoing proceedings.

In a statement, Saipem reaffirmed its commitment to defending its legal rights throughout the remainder of the legal process. The company remains optimistic about the future outcome and is taking the appropriate actions to safeguard its position in Brazil's market.

This ruling is seen as a positive development for Saipem as it allows the company to potentially re-engage with the Brazilian public administration, a significant market for the company’s business. The situation will continue to evolve as the legal process moves into the appeal stage.

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