by Staff Writers
Warsaw (AFP) Oct 4, 2016
Poland's rightwing government on Tuesday quit talks with Airbus on an offset deal linked to a multi-billion euro contract for 50 military helicopters, a government statement said.
"Poland is ending offset talks with Airbus Helicopters connected to the contract to purchase multipurpose Caracal helicopters for the Polish army," a statement by the Development Ministry leading the talks said.
Offsets are arrangements whereby a supplier of military hardware typically sweetens a deal by setting up a factory in the purchasing country or agrees to place orders with companies there.
"The differences in the negotiating positions of both sides preclude a compromise, so further negotiations are pointless," the ministry said about the talks, key to finalising the 3.14 billion euro ($3.5 billion) chopper deal.
Poland's previous liberal government announced in 2014 it was planning to buy 50 Caracal choppers as part of a major military upgrade triggered by regional tensions over Russia's annexation of Crimea from Ukraine that year.
But the new righwing Law and Justice (PiS) administration called the deal into question not long after it took office in late 2015.
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