Damen Shipyards, a prominent Dutch shipbuilder, is facing serious legal challenges as prosecutors have charged the company with violating EU sanctions against Russia and have opened a separate investigation into corruption allegations. The company has denied all accusations and plans to contest the charges vigorously.
Damen Shipyards is charged with breaching EU sanctions on Russia and facing corruption allegations.
Damen Shipyards is charged with breaching EU sanctions on Russia and facing corruption allegations.
The investigation follows a lengthy seven-year inquiry and a failed settlement attempt.
Current and former executives, including the company’s chairman, are implicated in the charges.
Damen maintains its compliance with international regulations and expresses confidence in its defense.
Overview of Charges
The Dutch Public Prosecution Service (OM) has announced that Damen Shipyards, along with its current chairman Arnout Damen and two former chairmen, is being prosecuted for multiple offenses, including:
Bribery
Money laundering
Violating sanctions against Russia
The allegations stem from a series of transactions that allegedly occurred between 2006 and early 2017, during which Damen is accused of paying excessive commissions to agents involved in securing ship orders. These payments, reportedly as high as 15% of the total order value, raised concerns about potential bribery of foreign officials.
Sanctions Violations
The sanctions inquiry, led by Dutch customs, focuses on Damen’s alleged provision of goods and technology that could enhance Russian military capabilities. Prosecutors believe that Damen continued to supply these materials even after the EU imposed sanctions following Russia’s invasion of Ukraine in 2022. The company has expressed surprise at the timing of the prosecution, particularly since it claims to have complied with all applicable sanctions.
Implications for Damen Shipyards
The consequences of these charges could be significant for Damen Shipyards, which is a key player in the Dutch defense sector. If convicted, the company could face:
A four-year ban from competing for government contracts, as per European tendering regulations.
Damage to its reputation and potential loss of future contracts, particularly as the Dutch government plans to invest billions in replacing its navy fleet over the next 15 years.
Despite these challenges, Damen is expected to secure a substantial share of the upcoming contracts for naval fleet overhauls, as the Dutch government has emphasized the importance of supporting domestic shipbuilding.
Damen’s Response
In response to the allegations, Damen Shipyards has stated that it is confident in its legal position and looks forward to presenting its case in court. The company insists that it has always adhered to international regulations and is committed to transparency in its operations. Damen has also previously sued the Dutch government for damages related to the sanctions, indicating a contentious relationship amid these legal challenges.
As the case unfolds, the maritime industry and stakeholders in the defense sector will be closely monitoring the developments surrounding Damen Shipyards, given its pivotal role in the Dutch economy and national security.
Sources
Damen Shipyards Under Fire: Sanctions and Corruption Charges in the Limelight, Devdiscourse.
Shipbuilder Damen to be prosecuted for violating sanctions against Russia, NL Times.
Dutch Shipbuilder Damen Is Accused Of Corruption And, Marine News Magazine.
Prosecutors accuse Dutch shipbuilder Damen of corruption, violating sanctions, Global Banking | Finance | Review.
