Top officials in in AfD, Germany’s most prominent right-wing political party, have submitted an application to the German Federal Government (Bundesregierung) requesting the introduction of mandatory offsets in defence imports. The party is urging the German government to disregard Defence Directive 2009/91/EC to better promote Germany’s defence capabilities.
Russia is leaning offsets to retain its presence in the Indian defence market. The two countries have agreed to a new plan for Russian suppliers to localise 50 to 60 percent of military equipment and spare parts production.
Iran is preparing to manufacture parts of the Sukhoi Su-35 aircraft under license from Russia, according to Iranian state media. The comments come one month after Iran is rumoured to have taken receipt of Sukhoi aircrafts at its Air Force base in Mehrabad.
Poland has finalised a deal with the British wing of MBDA to co-produce CAMM missiles and iLaunchers in-country. Under the GBP1.9bn (USD2.4bn) contract, 44 iLaunchers and “several hundred” CAMM missiles will be manufactured domestically by Polish armaments group, Polska Grupa Zbrojeniowa (PGZ).
Poland is in talks with American giant Lockheed Martin for a follow-up order for 484 HIMARS rocket launchers worth up to USD10bn. The negotiations now reportedly focus on how Poland will co-produce the system for domestic use and export to European allies.
The ambiguous relationship between Foreign Military Sales (FMS) and offset agreements may leave the door open to financial malpractice, warns a senior officer in the US Air Force Judge Advocate General Corps.