Dutch Authorities Arrest 2 At Damen Shipyards For Alleged Sanctions Violations Against Russia

Dutch authorities have arrested two individuals as part of a new investigation into suspected sanctions breaches involving Damen Shipyards.

The arrests were made on 2 December after the Fiscal Information and Investigation Service (FIOD) carried out searches at several business locations and private homes.

According to FIOD, the two suspects, aged 39 and 60, are believed to have violated and deliberately circumvented sanctions against Russia since autumn 2022.

Investigators seized physical documents, digital files and data carriers for further examination. The agency confirmed that the investigation is ongoing and that no additional details could be given at this stage.

Dutch television programme Nieuwsuur reported that the case involves Damen Shipyards and two company directors.

The programme stated that investigators suspect the company supplied goods to countries used as routes for sanctions circumvention after EU restrictions against Russia took effect in February 2022. These items were later believed to have ended up in Russia while the war in Ukraine was underway.

Nieuwsuur also reported that the matter concerns a major shipbuilding project for crab-fishing vessels and that Russian shipyards were able to obtain components through Turkey and Hong Kong.

According to the programme, three manufacturers, including German propeller producer Schottel, claimed they recognised their parts in import-data analyses and that the components had been supplied exclusively to Damen in the Netherlands.

In response to Nieuwsuur, Damen reportedly said it was fully cooperating with all authorities involved in the investigation and emphasised that it had always acted in compliance with applicable laws and regulations.

The company added that FIOD had visited several employees and its headquarters. Damen further stated that it had previously reviewed the relevant matters internally and had voluntarily shared its findings and documents with customs authorities earlier this year, including last summer.

Per media reports, one of Tuesday’s searches took place at a property in Noordeloos, Zuid-Holland, believed to be the home of Kommer Damen, the 81-year-old former CEO. He was not arrested.

FIOD added that this new case is separate from earlier legal proceedings involving Damen. That matter, which reached court for the first time last month, concerns allegations of bribery, forgery and money flows linked to high commission payments made between 2006 and January 2017. Those commissions were reportedly paid to agents who helped secure ship sales in Africa, Asia and South America.

There is also another separate case of possible sanctions violations involving the delivery of cranes to Russia. Damen has previously rejected claims that the crane shipments breached sanctions.

During last week’s hearing, the Dutch Public Prosecution Service (OM) revealed that two previously unidentified suspects in the earlier bribery case had entered plea agreements.

Damen, along with CEO Arnout Damen and former executives Kommer Damen and René Berkvens, remains under scrutiny in those proceedings.

Damen Shipyards, the Netherlands’ largest shipbuilder and a supplier of naval vessels to the Dutch military and other NATO nations, is scheduled to return to court on 11 December.

References: swzmaritime, nltimes

Source: Maritime Shipping News