Poland Scraps $3.5 Billion Deal To Procure 50 Airbus Caracal Helicopters

Poland has scrapped $3.5 billion deal for the procurement of 50 Airbus EC-725 Caracal multi-purpose helicopters for its army.

"Poland considers the negotiations regarding the offset agreement with Airbus Helicopters related to the contract for the purchase of Caracal multi-role helicopters for the Polish army as finished," the Polish economy ministry was quoted as saying by Reuters on Tuesday

Poland's previous centrist government, beaten by the eurosceptic Law and Justice (PiS) party in elections last October, agreed a provisional deal with Airbus for 50 EC-725 Caracal multi-purpose helicopters.

That meant turning down offers from Sikorsky in the United States and AgustaWestland in Italy.

Earlier this year local media reported that Poland scrapped the deal, but Airbus said talks were continuing.

"For the Polish government the top priority is to ensure the security of the state and the conditions for the development of the Polish defence industry. Discrepancies in the negotiating positions of both sides make it impossible to reach a compromise, and therefore the continuation of talks is pointless," the ministry also said.