Toronto Shipbuilder Faces Charges of Forgery, Violating Russian Sanctions

Damen Shipyards International, the builder of Toronto’s new $92 million ships, has been charged in the Netherlands with forgery, bribery and violating Russian sanctions.

According to a report by the Dutch prosecutor’s office, the investigation into the company’s activities took place between 2006 and 2017 and included high commission payments to middlemen on projects in Africa, Asia and South America, which prosecutors said increased the “possibility of bribery of local officials.”

In a separate case, Damen is also accused of delivering industrial equipment related to the Russian fishing sector to the country in 2022, which may have violated EU sanctions.

However, Damen said the cases will not affect the contract with Toronto and that the shipbuilding project is continuing as planned.

A company spokesperson said:

> “We have invested heavily in compliance since 2014 and we are currently meeting the highest standards of transparency.”

The City of Toronto confirmed that it was unaware of the allegations until Tuesday and is currently investigating the matter.

Mayor Olivia Chow responded to reporters by saying:

> “We are closely monitoring the case. If circumstances change or new information becomes available, we will respond appropriately. But right now, the project is moving forward and we need the ships.”

Toronto Islands’ two new electric ships are scheduled to be delivered from Damen’s shipyard in Romania in 2026 and 2027.