Dutch shipbuilder seeks $5.23B from Germany for canceled frigate project: Report

Dutch shipbuilder Damen is seeking nearly €4.7 billion ($5.23 billion) from the German government after the cancellation of the navy’s F126 frigate program, the German newspaper BILD reported Thursday.

Damen’s lawyer Peter Gauweiler sent a letter to members of the Bundestag’s budget and defense committees demanding €4,679,663,394, according to the report.

Gauweiler argued that the figure concerns payments the federal government committed to under the contract, rather than an additional claim for damages.

He said Defense Minister Boris Pistorius’ termination of the contract did not remove those obligations, and that a substantial share of the money would go to hundreds of Damen’s subcontractors in Germany.

The company’s assessment of its losses remains incomplete, meaning further claims could follow, according to the report.

Allegations against ministry

The correspondence reportedly included a letter dated Sept. 22 addressed to Pistorius, alleging that suspicions of abuses of authority by senior Defense Ministry officials had intensified.

Damen requested a legally binding commitment from the ministry to cover existing and future losses arising from the alleged breaches.

The allegations are part of an escalating dispute about the cancellation of a program to build six F126 frigates, one of the navy’s largest modernization projects.

Although Damen was the main contractor, the ships were to be built entirely at German shipyards in Wolgast, Kiel and Hamburg.

Pistorius halted the project on June 24, citing severe delays, rising costs and unpredictable risks. Completing the program could have cost as much as €18 billion, according to the ministry’s calculations cited in the report.

Germany considers counterclaim

Damen disputes the government’s explanation, arguing that the cancellation was politically motivated. The company also points to Berlin’s decision in June 2024 to order two additional frigates under the program.

Pistorius rejected the allegations in July, attributing the termination to the contractor’s poor and incomplete performance and defending the decision as necessary to protect taxpayers’ money.

The German government is preparing a potential €2.3 billion claim for damages against Damen, according to the report.