Trial starts against Damen Shipyards for bribing foreign officials, violating sanctions

Today is the first preliminary hearing in the case against Damen Shipyards - one of the Netherlands’ most important defense companies. Damen is suspected of circumventing sanctions imposed on Russia and committing corruption by bribing officials abroad, among other things.

Damen builds naval vessels for the Netherlands and other NATO countries. The Dutch government considers the company to be of “national strategic importance.” Public Prosecution Service (OM) is prosecuting the company as well as its current and two former directors.

“It is a unique case,” chief public prosecutor Michiel Zwinkels told Nieuwsuur. It is the first time that a major European defense company is prosecuted for sanctions evasion. A corruption conviction could also have major consequences, as it would prohibit the company from taking government contracts for at least four years.

“That creates more tension, there’s more pressure on such a case,” prosecutor Zwinkels told Nieuwsuur. “But when a company important to the Dutch defense industry is suspected of circumventing sanctions against Russia, it is perhaps even more important to bring this to court.”

According to the OM, Damen exported ship components to Russia in violation of the sanctions imposed by the European Union after Russia invaded Ukraine.

The company allegedly falsified export declarations submitted to customs for deck cranes at least 14 times in 2022 to hide that they were going to Russia. According to the OM, these goods and technology contributed to Russia’s military and technological enhancement, violating the sanctions imposed.

Damen is also being prosecuted for corruption. The shipbuilder allegedly bribed officials in various countries to sell more ships.

Damen Shipyard said in a statement that it was approaching the trial with “confidence” and is pleased to “finally have the opportunity to explain that the Public Prosecution Service’s suspicions are unfounded.”