The hacked email account of Yousef al-Otaiba, the influential UAE ambassador in Washington, has provided some startling insights into the Emirates’ offset arrangements. The emails reveal that the UAE created a “slush fund” from offset obligations and funnelled money meant for domestic economic development projects to a high-profile think tank in the United States in order to curry favour for arms sales.
The Czech Republic is drafting an industrial participation policy to be used on a case-by-case basis. The move comes ahead of major military purchases planned for a modernisation programme. The requirements include helicopters, armoured patrol vehicles... The draft has the MoD and the Ministry of Trade and Industry (MITI) as co-signatories...
Romania’s Supreme Council for Defence has indicated that contracts for military equipment should favour domestic industrial participation whenever possible. When domestic IP isn’t possible, offsets should be for at least 80 percent of purchase contract value. Romania is advancing numerous defence deals on the premise that they will include domestic IP
Indonesian Trade Minister Enggartiasto Lukita has included crackers in the list of foodstuffs to be bartered for eleven Russian Sukhoi Su-35 fighter aircraft. Defence Minister Ryamizard Ryacudu has revealed details of the financial terms. “I am serious [about the crackers], because there is added value,” Mr Enggartiasto said, implying there would be additionality.
Defence Minister Marise Payne declared that local industry will have more opportunities to participate in major defence infrastructure projects as part of a pilot programme. The Local Industry Capability Plan pilot will ensure that Australian businesses have the best opportunity to take part in the government’s $200bn (US$160bn) investment in defence capability over the next decade, she said.