Dutch shipbuilder sues government over losses from Russian sanctions

Damen stopped operating in Russian ports at the start of the war in Ukraine. Photo: Jasper Huynen

The Netherlands' largest shipbuilder has sued the Dutch government for damages it claims it has suffered as a result of sanctions against Russia.

Damen has closed its Russian operations in the ports of St. St. Petersburg and Novorossiysk, which are strategically important for the Kremlin's naval forces, at the beginning of the year. full-scale invasion of Ukraine last year.

It also pulled out of contracts to supply a number of ships to Russia due to EU sanctions imposed on Moscow in response to the war.

The company is best known for creating a wide fleet. military and industrial vessels, as well as luxury yachts.

Rik van de Wag, a spokesman for Damen, said on Tuesday the company is seeking compensation because it has “suffered damage” from punitive measures imposed by the bloc.

“Before the sanctions, Damen signed contracts with Russian ship buyers, and after the invasion of Ukraine, the Dutch government decided that such contracts might not be respected by the Dutch business community.

“The government did not do this. offered Damen compensation for this damage.»

EU introduced 11 packages of sanctions aimed at starving Russians President's war machine Vladimir Putin, consisting of much-needed Western technology and facilities. The measures are being implemented by the national governments of the bloc's 27 member countries.

The Dutch government has not yet commented on the lawsuit, but insiders have expressed anger at Damen's actions.

«True north on the Damen moral compass always points to the owner's wallet,» said the Dutchman. A government source told the Telegraph.

The shipbuilder was due to deliver five tugboats to Rosatom, Russia's state atomic energy agency, last October.

Details about its other clients are largely being kept under wraps secret, but Dutch media reported that several work boats and trawlers were under contract with Russian firms.

Rejection of Russian contracts.

UK shipbroker Clarksons listed 41 tugs. Platform supply vessels, crew boats and ferries were being built at Damen's facilities in Gorinchem, southeast of Rotterdam, at a time when sanctions were imposed and Damen announced the cancellation of Russian contracts.

Within days Damen previously delivered an Arctic dredger to Russia after the invasion, which will likely be used to create new shipping lanes in the region.

The company previously built a yacht for Russian oligarch Oleg Tinker, who was recently lifted from UK sanctions. and was preparing a vessel linked to former Chelsea owner Roman Abramovich, who was hit with UK and EU sanctions.

The firm filed the claim in a Rotterdam court on May 10, but the case is only expected to move forward next year.

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Despite the sanctions, Damen produced a record €2.5 billion (£2.1 billion) worth of ships in 2022, according to figures published earlier this year.