Two arrested as authorities investigate Damen for alleged sanctions violations

Two individuals have been arrested by the Dutch Fiscal Intelligence and Investigation Service (FIOD) as part of a new probe into potential sanctions breaches by shipbuilder Damen, sources told ANP. Damen and the two arrested individuals are suspected of intentionally breaching and circumventing sanctions against Russia since autumn 2022.

This case is said to be separate from the existing charges against Damen, which were heard in court for the first time last month. Damen is alleged to have supplied goods even after European sanctions took effect in February 2022, with the items reportedly reaching Russia through so-called “circumvention countries.”

The FIOD conducted a raid on Tuesday at a house in Noordeloos, Zuid-Holland, the agency confirmed. Media reports suggest it was at the home of Kommer Damen, the 81-year-old former CEO of Damen, though he was not arrested. The two individuals taken into custody are 39 and 60 years old.

On Wednesday, the FIOD released a statement regarding the investigation but did not confirm that Damen is the company involved. The agency said that multiple business premises and residences were raided and that documents were seized. The investigation is still ongoing, and no additional details can be provided at this stage.

Damen said that the FIOD had visited several employees and its headquarters. The company added that it has previously conducted a thorough review of the relevant matters. "The results of this review were voluntarily shared with customs authorities on multiple occasions, including last summer, along with all related documents." Damen stated that it is fully cooperating with the authorities and "reiterates that it has always acted in compliance with applicable laws and regulations."

Damen, along with CEO Arnout Damen and former executives Kommer Damen and René Berkvens, was already under suspicion for, among other allegations, years of bribery and document falsification in the sale of ships to Brazil, Indonesia, and the Caribbean. Another case involved alleged violations of Russia sanctions in 2022, when the company supplied cranes for crab fishing vessels. Damen has denied that this constituted a sanctions breach.

During last week’s hearing, the OM revealed that two previously unidentified suspects had made plea deals with the authorities.

Damen Shipyards is the Netherlands’ biggest shipbuilder, producing naval vessels for the Dutch military as well as other NATO countries. The next hearing in their trial is scheduled for December 11.