Image credit: damen.com
The current bilateral fallout between Russia and Ukraine has turned drastically multilateral
Most oil companies including Equinor, Shell, Wintershall Dea and ExxonMobil suspended their Russian operations. 5 top carriers have either fully or partially exited the Russian market. The colossal impact has spilled over to shipbuilding, beginning with Dutch-owned Damen Shipyard Group.
What it means for Damen Shipyard
Ever since the European Union (EU) expressed outrage at Russia’s actions, businesses that left Russia in droves were all ready to make huge (monetary) sacrifices. Damen Shipyard Group, a Dutch builder with 35 shipyards and 12,000 employees in Europe, the Middle East, Africa, Asia and South America stepped up to join the rally. The company announced that it has ceased delivering newbuildings and entering into new contracts with Russia despite still having several contracts including work boats on hand. The country happens to be a key market for Damen’s leisure vessels, a website estimated it accounts for 20 per cent of its sales.
A Damen spokesperson disclosed to the media that the decision involves a significant amount and will have a firm impact on the company, though no figure was revealed. With the scale of Damen’s business, it is anybody’s guess on how much the company is prepared to forego. Damen added it will remain in close contact with the relevant authorities about the situation around Russia as it has operations in the Ukraine. Damen reportedly has some 200 employees in Ukraine, and is actively providing assistance.
Damen joins the cohort of enterprises who have exited in protest of Russia’s acts, massively impacting world trade. With Korea too slapping sanctions on Russia, that leaves China to support Damen’s Shipyard’s orders if there are more. With a substantial number of Chinese shipbuilders being state-owned, any movements would say a lot about the republic’s position towards Russia.
Marine Online News Team
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