Sabre-Rattling Soars: Poland Buys US Patriot Air Defense System, Gold Pops

Submitted by Tyler Durden on 04/21/2015 13:37 -0400

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Just days after Russia lifts sanctions on Iran and prepares to send its S-300 missile defense system, it appears Washington has retaliated. As TASS reports, Poland - on Russia's doorstep - has decided to buy the US Patriot air-defense system (made by Raytheon) for a total cost of around $9bn: "The US proposal has been found to be more profitable from the viewpoint of Poland’s security and implementation of commitments within NATO framework." Washington, keen to ensure Warsaw signed up with Raytheon, has decided to loan Poland a battery of Patriots until the deal is signed.

As TASS reports,

Poland has chosen the supplier for its national missile defense system. According to the country's Defense Ministry, it is the US company Raytheon, the manufacturer of Patriot air defense missile systems.

"The US proposal has been found to be more profitable from the viewpoint of Poland’s security and implementation of commitments within NATO framework. Patriot systems are used in several countries," the ministry said.

Taking part in the tender was the Italian-French Eurosam corporation that manufactures the SANP/T systems. The Defense Ministry said one of important criteria in the selection of the air defense systems was their capability to resist Russian Iskander missile systems.

The project to form a national missile defense system in Poland is called Wisla. It envisions acquisition of eight medium-range air defense system batteries. Each of them will be equipped with GEM-T and PAC-3 MSE missiles. The Defense Ministry did not mention their quantity.

The signing of the contract is scheduled for 2016. Within three years after signing, the supplier should provide two batteries of one of available versions to Poland. The target configuration with a radar should appear in the republic in 2022-2025.

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As The FT notes, Raytheon’s Patriot system will give Poland the ability to defend itself against air missiles and military aircraft...

Washington was keen for Poland to choose Raytheon’s missile system, and has agreed to loan Warsaw a temporary set of Patriot batteries until the purchased products are delivered.

...procurement decisions were fraught with delays and controversy because of heavy lobbying from all sides and Warsaw’s desire to ensure it balanced geopolitical concerns and its needs to increase employment.

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While it is perhaps coincidence, precious metals jumped around the time the headlines on Poland hit...

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