Dutch shipbuilding company Damen Shipyards Group has sued the Dutch state, demanding compensation for damages it suffered due to European sanctions against Russia, Reuters reports.
Damen, which produces a wide range of military and civilian vessels, including luxury yachts, is the largest shipbuilding company in the Netherlands, a country with a strong industry in the field.
Rik van de Weg, a company spokesman, confirmed on Tuesday that Damen is seeking compensation from the Dutch state for lost business in Russia, after sources told Bloomberg.
Van de Weg said Damen has contracts to supply Russia with several vessels in its portfolio that were canceled after sanctions were imposed on Moscow over the start of the war against Ukraine last year.
He added that Damen also had a specialized marine engineering branch in Russia, but it cut ties with it after the invasion began.
A spokesman for the company declined to specify the amounts lost due to the termination of contracts in Russia, or the amount of compensation the company is seeking from the Dutch state.
The yachts could become a bone of contention between Damen and the Dutch state
The government led by then-Prime Minister Mark Rutte announced in April 2022 that it would not allow 14 yachts, 12 of which are still under construction, to leave the country’s shipyards due to sanctions against Russia.
Yacht building is an important industry in the Netherlands, with data from the country’s chamber of commerce showing that Damen and three other shipbuilders — Heesen, Feadship and Oceanco — had combined sales of €1.5 billion in 2020 in the business sector.
The Dutch Ministry of Foreign Affairs has so far declined to comment on Damen’s lawsuit.
The company filed a civil lawsuit in the district court in the port city of Rotterdam and said it was waiting for it to go through the normal legal process.
We recall that in early August, Damen announced the termination of its association with the Romanian state for the Mangalia shipyard, citing 3 years of blocking and lack of involvement or funding from the governments in Bucharest.
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Source: Hot News
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