Shipbuilder Damen Sues Dutch Gov't over Russia Sanctions

October 3, 2023

Dutch shipbuilder Damen Shipyards has sued the Dutch government over damages it says it has suffered due to European sanctions against Russia.

Damen, which produces a wide-ranging fleet of industrial and military vessels and luxury yachts, is seeking compensation for business lost due to the sanctions, company spokesman Rick van de Weg said, confirming an earlier report by Bloomberg.

Credit: AlexGo/AdobeStock
Credit: AlexGo/AdobeStock

Damen had delivery contracts for a number of vessels across the company's portfolio that were scrapped by the sanctions invoked by Russia's invasion of Ukraine in February 2022, Van de Weg said.

Damen had an engineering branch in Russia, but has severed ties with this operation after the invasion, he added.

The company could not immediately comment on the amount of contracts it had for deliveries in Russia or the size of the compensation it is claiming.

The Dutch government in April last year said it was preventing 14 yachts, including 12 that were under construction, from leaving the country due to sanctions on Russia.

Yacht-building is a significant industry in the Netherlands, with chamber of commerce records showing that major builders Heesen, Feadship, Damen Shipyards and Oceanco had combined sales of around 1.5 billion euros in 2020.

The Dutch ministry of Foreign Affairs declined to comment on the case.

Damen filed the suit in May at the district court in Rotterdam and is awaiting its further progress.

(Reuters - Reporting by Bart Meijer;Editing by Alison Williams)

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