Dutch shipbuilder seeking compensation for sanctions against Russia
Dutch shipbuilder Damen Shipyards has sued the government. With the legal action, the company is seeking compensation for financial loss suffered as a result of the sanctions against Russia.
Damen did not want to say how large the loss is exactly, but did say it is around tens of millions of dollars, according to Dutch news site RTL Nieuws. It says that Damen does support the sanctions against Russia, but claims it is unfair that it has to bear the burden on its own. And so Damen is taking the State to court to seek compensation for its financial loss.
'If you’re in this business, you’re dealing with States that sometimes have a dubious reputation. Measures are then part of the deal.'
'In principle, a company can indeed claim damage compensation in such a case,' Michiel Tjepkema, an expert on State liability and administrative law in Leiden, told RTL news. 'That avenue is open if measures are taken in the public interest (such as the sanctions), where a small group suffers damage. In this case, Damen.'
'The court will ultimately have to decide whether damage compensation will be given in this case, looking, among other things, at whether there is entrepreneurial risk,' RTL Nieuws said.
'According to Damen, the company could not have foreseen the war and associated sanctions, but Tjepkema is far from certain of that. "If you’re in this business, you’re dealing with States that sometimes have a dubious reputation. Measures are then part of the deal." If you still decide to do business with such a country, it’s a well-considered risk'.
Photo: Maksym Kaharlytskyi via Unsplash.