Damen Halts Delivery of Newbuilds to Russia

Netherlands-based shipbuilder Damen has decided to stop deliveries of new vessels to clients in Russia due to the ongoing invasion of Ukraine.

The firm told Dutch media that it expects that the decision will have a measurable impact on the company's earnings. "It is a significant amount," a spokesperson told RTL. 

The decision will affect a number of working vessels already contracted or under construction, like tugs and fishing boats. It will also have an impact on dozens of Damen's suppliers. 

"It is a significant part of our turnover that we derive from that region. So it was not a light decision," a spokesperson told PZC. 

Damen is also working to take care of the 200-plus employees of its Ukrainian division, located in the city of Nikolaev, which is under seige. "We have a team that is in constant contact with our employees there. We are looking at how we can help them," the spokesperson told PZC. 

The company joins a growing list of Western manufacturers, suppliers and service providers who are exiting the Russian market. Most oil companies - including Equinor, Shell, Wintershall Dea and ExxonMobil - have agreed to suspend their Russian operations. Five of the top six ocean carriers - save for China Cosco - have fully or partially exited the Russian market. 

The list extends to a broad range of consumer goods and services. Samsung and Apple are no longer supplying the Russian market with tech products. Ford and General Motors have suspended their Russian sales operations. Over the weekend, Visa, Mastercard and American Express suspended payment operations in Russia, though existing cards will still function for domestic purchases.