One of the Netherlands’ biggest shipbuilders, Damen Shipyards, is now in serious trouble. Dutch prosecutors said on Friday that they believe the company may have broken European Union (EU) sanctions against Russia. These rules were created to prevent certain goods and technologies from reaching the Russian military, especially after tensions rose between Russia and the West.
The case involves a deal from June 2022. According to the Dutch authorities, Damen may have sent goods or equipment that could be used by the Russian military. If true, this would go directly against the EU’s sanctions. The investigation was handled by Dutch customs officials, who look into things like shipping and trade. They believe Damen might have done something wrong that could help the Russian armed forces.
But Damen strongly disagrees. In a statement, the company said it always followed the law and respected all sanctions. They said they were “surprised” that this case, from nearly two years ago, is only now going to court. Damen also said that the company has always tried to obey the rules and is ready to explain itself in court.
This case is very important because Damen is not just any company. It is privately owned by a family and employs around 12,000 people. It’s also expected to build a big part of the new ships for the Dutch navy, as the country is planning to replace most of its naval fleet over the next 15 years. So any trouble with the law could raise big concerns.
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Separate Corruption Case on Damen Adds Pressure
As if the sanctions case wasn’t enough, Damen is now also facing a second, unrelated investigation. Dutch prosecutors said they are opening another legal case against the company, along with some of its top officials. This one is about possible corruption, bribery, and money laundering.
This corruption case looks at business activities between 2006 and January 2017. In those years, Damen was involved in selling ships to international customers. Authorities believe that some of those sales may have involved dishonest actions. They think some people at Damen may have paid bribes to get deals, forged documents, or moved money around in secret to hide where it really came from.
Prosecutors did not name which countries were involved or how many people are being accused, but they are treating this as a serious issue. These kinds of charges can badly hurt a company’s image and trust, especially when it’s a company that works closely with governments.
Damen has again denied doing anything wrong. In a strong message, the company said it is confident that the charges will be proven false in court. They said this case is a chance for them to finally speak up and explain their side of the story.
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Past Disputes with the Dutch Government
This is not the first time Damen has had legal troubles linked to the EU’s Russia sanctions. In October 2023, the company actually sued the Dutch government. Damen claimed that it lost money because of the EU’s restrictions on doing business with Russia. They wanted the government to pay for the damages they say they suffered.
At the time, this move caused a stir because most companies do not sue their own government, especially when they rely on government contracts. Damen has long been a key player in Dutch shipbuilding, especially for the navy and other state projects.
Now, with two different legal battles unfolding—one about breaking sanctions and another about corruption—Damen finds itself under major pressure. Both cases will be handled in court, and they could take time to resolve. For now, the company says it will fully cooperate with the legal process and continue to defend itself against the charges.
This story is still developing, but for now, all eyes in the Netherlands—and beyond—are watching to see what happens next with Damen Shipyards.
