Poland signs Patriot missiles offset agreements

Poland has signed offset agreements linked with the purchase of the US-made Patriot missile defence system, Poland's Defence Minister Mariusz Blaszczak announced on Friday.

The value of the agreements, signed in Warsaw on Friday by Deputy Defence Minister Sebastian Chwalek, representatives of Raytheon Company and Lockheed Martin Global Inc., reach almost PLN 950 million (EUR 224.6 million), the Polish Defence Ministry announced.

The offset "is linked with the delivery of Wisla-stage I medium-range air and missile defence systems," wrote the ministry adding that the signing of the offset agreements was the condition for signing a contract for the delivery of the Patriot missile defence systems in the first, out of two planned phases.

The offset agreement signed with Raytheon Company includes 31 offset commitments for 10 years. According to the Defence Ministry it will allow, among others, to gain new capabilities regarding "command and management based on the Integrated Air and Missile Defense Battle Command Systems, the production and servicing of launchers and transport vehicles," as well as to set up a certified production administration and management centre, adjust, service and repair elements of the Wisla and other air defence systems. The offset is worth PLN 224.12 million (EUR 52.99 million).

The document signed with Lockheed Martin Global Inc. includes 15 offset commitments for a period of ten years. The contract is to give Poland the ability to produce and service elements of launchers meant for PAC-3 MSE missiles, to produce selected elements of PAC-3 MSE missiles, construct a missile research laboratory and to secure the maintenance of Polish-owned F-16 planes. The value of this offset deal is PLN 724.76 million (EUR 171.3 million).

Negotiations on the offset agreement started in October 2017. The signing of a contract for the delivery of Patriot systems, to be the base of Poland's medium air defence programme, is expected to take place next week.

The modernisation of the air-defence system is one of the priorities of the long-term plan for the development of the Polish Armed Forces. Wisla, a medium-range system capable of combating ballistic missiles, is one of the components of the planned national air-defence system. The Polish Defence Ministry plans to spend PLN 17.1 billion (EUR 4.4 billion) on air and missile defence in the years 2018-2022.  

The selection of Patriot air-and-missile defence batteries as a topic for discussion between the governments of Poland and the US was made by the PO-PSL (former ruling parties – PAP) coalition in April 2015.