The Netherlands to try largest shipbuilder for violating sanctions against Russia

The Dutch Attorney General’s Office will prosecute the Dutch shipbuilding company Damen Shipyards, among the charges – violating sanctions against Russia. This is reported by de Volkskrant.

Prosecutors suspect Damen Shipyards of continuing to supply goods and technology to Russia over the past three years, despite EU sanctions imposed after the full-scale invasion of Ukraine.

In addition to the company itself, the case involves the current and two former members of its board. These include the founder of Damen Shipyards, Kommer Damen, and his son Arnout.

They are accused of excessive payments to agents abroad responsible for obtaining orders: 15% of the total value of the order, which is a significant amount, considering the cost of the ships.

“With such high commissions for successful completion of the order, there is a high risk that agents will use some of the money to bribe officials,” explains de Volkskrant.

The investigation into Damen Shipyards, according to the publication, has been ongoing for seven years, and in 2024, the Dutch Attorney General’s Office allegedly tried to settle the case out of court but failed.

The consequences of the conviction could be far-reaching for both Damen Shipyards and the Netherlands: the company is the largest supplier of ships to the local fleet, de Volkskrant reports.

In 2023, it was reported that Damen Shipyards had sued the country’s government over damages caused to its business by sanctions against Russia imposed due to its full-scale invasion of Ukraine.