MAIN HEADLINES FROM THIS ISSUE:

• Russia turns to west for warship IP programme

  The demand for a domestic-build programme in Russia is a significant shift in policy that now sees industrial participation as a cornerstone of naval production, and potentially for other defence materiel too.

• Germany and Italy square off as Rome demands defence projects

  Negotiations between the German and Italian governments have deadlocked over demands from the Italian MoD that Germany provide substantial and entirely defence-related workshare benefits…

• Poland to pass exemption to the offset law

  Poland is amending its law on offsets. The change will remove the requirement for offsets in contracts for the supply of military equipment for Polish forces serving overseas.

• South Korea: Dapa stalls on FDI – eligible commercial offsets listed

  South Korea’s Defence Acquisition Programme Administration (DAPA) has informed CTO that the government is formulating a plan to permit foreign direct investment (FDI) in the country’s defence sector but has not yet decided how the plan will be implemented.

• Feingold favours countertrade to get Harleys into India

  Senator Russ Feingold (D-Wis.) has asked the Obama administration about a trade swap that would allow Harley-Davidson Inc. to export bikes to India in exchange for India exporting mangoes to the United States.