Damen Shipyards seeks dismissal of Russia sanctions charge amid corruption probe

Damen Shipyards has formally asked the Public Prosecution Service (Openbaar Ministerie, OM) to drop one of the charges against the company involving alleged circumvention of sanctions against Russia, a company spokesperson confirmed Friday.

Earlier this year, the OM announced it was prosecuting Damen following a customs investigation. The prosecution claims Damen supplied goods and technology that contributed to Russia’s military and technological enhancement, violating sanctions imposed after Russia’s invasion of Ukraine.

The spokesperson said Damen only made one delivery in 2022, after the invasion, and experts reviewing the case determined this shipment complied with the sanctions in place at that time. “This is so weak that we have requested dismissal,” the spokesperson said. The request was submitted roughly a week ago, De Telegraaf reports.

In addition to sanctions violations, Damen and several executives face charges of bribery, forgery, and money laundering. Investigations by the Fiscal Intelligence and Investigation Service (FIOD) revealed that between 2006 and early 2017, Damen paid large sums to agents involved in ship sales across multiple countries. The OM suspects these payments were used to bribe public officials in those countries.

Damen Shipyards, headquartered in Gorinchem, is the largest shipbuilding company in the Netherlands. It operates 35 shipyards worldwide in 20 countries and employs over 12,000 people. Damen builds vessels for various clients, including the Dutch Navy. Its naval division in Vlissingen recently received a bridging loan of 270 million euros from the Dutch government to maintain operations amid the ongoing investigation.