Main headlines from this issue

Directive 2009/81/EC - EC pressures member states to respect directive as governments skirt offset restriction

The EC has issued notices to member states asking them to respect the intent of directive 2009/81/EC. The directive prohibits offsets in most cases. Member states remain engaged in a discussion on acceptable conditions to include government-to-government contracts and on possible exemptions from the directive. The same talks affect FMS-type procurement. The UK has taken particular exception to the tone of the discussion…..

UAE changes tack – announces policy revisions

Tawazun has introduced significant changes to the UAE’s offset guidelines. The penalty provisions and multipliers have been modified and non-defence projects are back in favour. Credits for input and output activities have also been reviewed.

UK’S defence industry powers ahead with help of DSIEP policy

This year’s annual report on the UK MoD’s Defence and Security Industrial Engagement Policy (DSIEP) shows that signatories to the policy increased investments in the UK’s defence sector by 240 percent over the last twelve months. The reported total is £1.17bn ($1.8bn). Nine foreign prime contractors signed up and detailed their investments.

Russia introducing localisation measures on foreign contractors

The Russian authorities are further developing the country’s regulatory framework to adopt import substitution measures and stimulate localisation. Law firm CMS Russia recommends that foreign suppliers exercise caution when implementing a production localisation project in Russia. The country currently has no practice or precedent in the application of the new provisions.

Indian Israeli collaboration weighed down by ‘Alice in DPP land’

Tarun Vijay MP, a member of India’s Parliamentary Standing Committee on Defence, told an international seminar on 'Strategic Defence Cooperation between India and Israel' that discharging offset obligations used to be a challenge for Israeli companies. That changed in August…..