Damen Shipyards Faces Prosecution for Sanctions Violations, Corruption Claims

Dutch prosecutors have launched criminal proceedings against Damen Shipyards and several executives, alleging the company violated EU sanctions by continuing to supply goods and technology to Russia following the 2022 invasion of Ukraine, potentially strengthening the Russian military. Alongside the sanctions case, Damen and its current and former board members face prosecution for bribery, forgery, and money laundering tied to international ship sales between 2006 and 2017, with accusations of excessive and concealed payments to foreign agents. Damen denies all allegations, expressing surprise at the timing and insisting it has complied with all applicable regulations. The prosecution follows a seven-year investigation and failed out-of-court settlement efforts, intensified by recent media revelations. A conviction could bar Damen from competing for government contracts for four years, which would have significant implications given its key role in supplying ships to the Dutch navy. The company anticipates lengthy legal proceedings to contest the charges.