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CONTENT

• Russia’s resumé

• Defence

• Technology

• Industry & Trade

MASTHEAD

ESD SpotlightEmailnewsletterofthebimonthlymagazine“European Security & Defence” (ESD)

Editor-in-Chief: Dr. Peter BossdorfDeputy Editor-in-Chief: Henning BartelsManaging Editors: Dorothee Frank (df) (newsletter)andStephenBarnard(magazine)Editors: Wilhelm Bocklet (wb), Gerhard Heiming (gwh), Yury Laskin (yl)

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Russia’sPresidentVladimirPutinheldhisan-nual year-end resumé in Moscow yesterday. One focus of his speech was on the Ukraine conflict,whichwillalsobeapointforEurope-an-Russian relations in 2016. Putin admittedpresence of Russian military forces in eastern Ukraine during the speech, but also noted, that these forces are necessary in order to not abandon people. “In nine or ten regions the oppositionbloctookthefirstorsecondplace,”Putincommentedonelectionresultsinsouth-eastUkraine. “Do the authorities inKievnotseeit?Dotheynotwanttoconsidertheatti-tudesandexpectationsoftheirownpeople?”Putin also marked, that Ukraine’s behaviourhas been not only against Russia, but also against their own population. Especially theappointment of former Georgian President Mikheil Saakashvili – who might expect a pri-son sentence of more than ten years if he ever enters his home country Georgia again – as Go-vernor of the Odessa region in Ukraine, should be seen as a “blow to the faces of Ukraine’s people.” Russia holds Saakashvili responsible for the 2008 South Ossetia war and for thecollapse of the Georgian state, a point of view thatfollowstheevaluationofGeorgianjudici-aryandpoliticans.TobeGovernorofOdessaSaakashvilihadtobecomeanUrkainiancitizenand let aside his Georgian origins.Still,PutinpointedoutthatheisnotinterestedinaworseningoftherelationshipwithUkrai-ne.ButalsoUkrainewillnotenjoyanymore

privileges. “There will be a worsening of economic relati-ons with Ukraine,” Putinpredicted.“Wewill no longer be doing business with Ukraine as a mem-beroftheCISfreetradezone.”AtthemomentRussiaandUkraineusezeroratesintrade,butRussiawillapplythe“averagetariffof6%”byJanuary 1, 2016. “In some cases it would be 3%,inothers8%,oreven10%,”Putinsaid.The other important security related point of theannualspeechwasRussianTurkishrelati-onship. Since the Turkish Air Force shot down a Russian Su-24M bomber, which was on an-ti-terrorismmissionoverSyria,onNovember24,2015,relationshiphasbecomeworse.An-kara claims the Russian Su-24M bomber viola-ted Turkish air space while Moscow maintains that the Su-24M plane stayed exclusively over Syrian territory.“Itisdifficultandsometimespracticallyimpos-sible to come to agreement with the current Turkish leadership,” Putin explained the cur-rentrelationship.“Thecrawlingislamizationisirritatingus aswell.We see and register thepresence of militants in Turkey.” On the other hand, Putin talked about possible economicprojects,liketheTurkishStreampipeline,du-ring his end-of-year review. Dorothee Frankhttp://en.kremlin.ru

Russia’s annual year-end resumé

2ISSUE 23 / 2015

Defence

Montenegro to becomenew NATO member

(df) NATO foreign ministers have agreedto invite Montenegro to begin accession talks to become the 29th member of the Alliance. “We congratulate Montenegro,” NATO Secretary-General Jens Stoltenbergtold the ministers at the alliance headquar-ters in Brussels early December. Montene-grin Deputy Prime Minister Igor Luksic said theNATO invitewas“apositive signal forall of the Western Balkans.”

Montenegro, a nation of 600,000 peopleontheAdriaticSea,willveryprobablybec-omeNATO’s29thmemberin2017.Thesi-gnalisespeciallythatNATOstillcontinuousto grow, even though it last expanded in 2009whenAlbaniaandCroatiajoined.Luksic promised his countrywill continuecarryingoutreforms,includingfightingcor-ruptionandimprovingthedefensesector.“We are fully aware that the invitation isnot the end of the process, but the begin-ning of a new one,” he said. “We are deter-

minedtoconstantly improveandworkti-relessly, not to please others but to change oursocietyforthebetter.”www.nato.int

EDA-OCCAR cooperation

(df) Chief Executive of the European De-fence Agency (EDA) Jorge Domecq and Di-rectorof theOrganisationfor JointArma-mentCooperation(OCCAR)TimRowntreesignedarevisedguidancedocumentdefi-ningthetermsofcooperationbetweentheEDAandtheExecutiveAdministration(EA)of OCCAR as well as between the EDA and OCCAR Member States on December 16.Compared to the Interface Document on EDA-OCCAR relations formulated in 2013,

thenewpublicationdevelopsconceptsofcooperation in amoredetailed andprag-maticmanner.ReferringtothePolicyFra-meworkforSystematicandLong-TermDe-fence Cooperation, the two organisationswill introduce greater synergies in terms of projectorprogrammemanagement.Newareas described in the document include differentmodels of how EDA cooperativeprojects can be taken forward by relyingontheOCCAR-EAcooperativeprogrammemanagementexpertiseaswellashowOC-

CARprogrammeactivitiescouldbeentrus-ted to the EDA.www.eda.europa.euwww.occar.int

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NATO and Ukraine

(df)NATOSecretaryGeneral JensStolten-berg and Ukrainian President Petro Poros-henko met yesterday to discuss ongoing security challenges in Ukraine and the part-nershipbetweentheAllianceandKiev.Af-ter themeeting,Mr.StoltenbergaffirmedthatNATOstandsbyUkrainepoliticallyandpractically, and that as the countryworkstostrengthen itssecurityand institutions,ithas“acommitted friendandpartner inNATO.”Thismeeting followsseveral stepsNATOhastakentostrengthenUkraine.On Wednesday NATO Assistant SecretaryGeneral for Defence Investment, Patrick Auroy and the First Deputy Secretary of the National Security and Defence Council ofUkraine, Oleg Gladkovskyi co-signed a road-map for NATO-Ukraine defence-technical

cooperation. The roadmap sets out keyactivitiestoimplementtheprioritieslistedin a corresponding declaration of intentsignedinSeptember2015.Thoseprioritiesincludeimprovementofthecapabilitiesofthearmedforces;cooperation instandar-dization and codification; transformationof Ukraine’s defence industry; Ukraine’s participation inNATO’s SmartDefence in-itiative; deepening co-operation betweenNATOandUkraine indefencescienceandtechnology; and professional develop-ment of the Ukrainian staff involved indefence-technical co-operation with theAlliance.Also a two day seminar on December 14-15brought together experts fromNATO’smilitary and civilian staff and representa-tives of the Armed Forces of Ukraine to

exchanged NATO’s and Ukraine’s latestexperiences on countering hybrid threats, with specific focus on counter-terrorism.Discussion topics ranged from strategies to counterhybridthreats,postconflictrebuil-ding and management in Afghanistan to strategiccommunications.Theexchangeofviews throughout the two days underlines theefforttocontinuetobuildonNATOandUkraine’s close cooperation, the Alliancesaid.www.nato.int

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Technology

Major milestones in the NATO AGS programme

(df)Duringthelastfourweeks,NATOAGSprogramme industries reached important milestonesregardingthedeliveryofcriticalassets for the AGS ground segment. Airbus Defence & Space performed the roll out of the MGGS (Mobile General Ground System) attheirfacilitiesinImmenstaad(Germany)and Finmeccanica - Selex ES performed the roll out of the TGGS (Transportable General GroundSystem)attheirfacilitiesinTorino(Italy). Both assets will be integrated into NATO AGS (Alliance Ground Surveillance)

Core System composed of an Air Segment, a Ground Segment and a Support Segment locatedinaMOB(MainOperatingBase)inSigonella, Sicily (Italy).NATO is acquiring an Alliance GroundSurveillance (AGS) system that will give commandersapictureofthesituationonthegroundinanareaofinterest.TheNA-TO-owned and -operated AGS Core capabi-lity will enable the Alliance to perform per-sistent surveillance over wide areas from high-altitude, long-endurance, unmannedair platforms operating at considerablestand-offdistancesand inanyweatheror

lightcondition.Usingadvancedradarsen-sors,theAGSCorewillcontinuouslydetectand trackmoving objects throughout theobserved areas, as well as providing radar imageryofareasandstationaryobjects.www.nagsma.nato.int

Bundeswehr receives the first two H145M for special operations

(wb) Airbus Helicopters delivered on December 8, 2015, the first two light-weight military multi-role H145M helic-opters (LUH SOF) to the German Armed Forces (Bundeswehr). The helicopters will be used by the Kommando Spezialkräfte(KSK), the German Army’s Special Forces,in Laupheim. The Bundeswehr, which is the launch customer for the H145M, has orde-red 15 of these helicopters. The H145M is the military version of the civil H145 that entered service in summer 2014 and recently reached the milestone of 10,000 flying hours in customer ope-rations.With amaximum take-offweightof 3.7 tons, the H145M can be used for a

widerangeofmilitaryoperationsincludingutility,reconnaissance,searchandrescue,armedscout,andmedicalevacuation.TheBundeswehr H145M (LUH SOF) is equip-ped with a fast roping system for troops, cargo hooks, hoists, a pintle-mounted door gun,ballisticprotectionandanelectroniccountermeasuressystem,whichoffersnewcapabilitiesforKSKspecialoperations.Theaircrafthasalsobeendesignedfordayand night missions as well as for those car-ried out in harshweather conditions anddifficultterrain.Itsmissionequipmentran-ge also includes a helmet mounted sight and display as well as a self-sealing supply tank.Powered by two Turbomeca Arriel 2E en-gines, the H145M is equipped with full au-

thority digital engine control (FADEC). Its lowacousticfootprintmakestheH145thequietest helicopter in its class. Buildingontherobustness, lowoperatingcosts and the especially high operationalavailability of the H145 family, the H145M is equipped with the Helionix digital avio-nics suite, including the 4-axis autopilot developed by Airbus Helicopters.www.airbushelicopters.com

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Improving capabilities for dismounted soldiers

(df) Military units must have a robust, mul-ti-facetedpictureoftheiroperationalenvi-ronments, but dismounted infantry squads have so far been unable to take full advan-tageofsomeofhighlyeffectivecapabilitiesbecause many of the technologies under-lying them are either too heavy ato carry or toodifficulttouseunderdemandingfieldconditions.

To address this application lag, DARPA’sSquad X Core Technologies (SXCT) pro-gramme aims to develop novel technolo-gies that could be integrated into user-fri-endly systems that would extend squad awareness and engagement capabilitieswithout imposing physical and cognitiveburdens. The programme, whose overar-ching goal is to ensure that Soldiers and Marines maintain uncontested tacticalsuperiorityoverpotentialadversaries, re-

cently awarded Phase 1 contracts to nine organisations.“Our goal is to develop technologies that support a three-dimensional common operating picture leveraging input fromintegrated mobile sensors, as well as the ability to organically locate and identifyfriendlyforcesandthreatlocationsinnearrealtime,”saidMaj.ChristopherOrlowski,DARPA programme manager. www.darpa.mil

4ISSUE 23 / 2015

Europe’s Copernicus programme

(df) Thales Alenia Space has signed a con-tract with the European Space Agency (ESA) to build the Copernicus Sentinel-1Cand 1D environmental monitoring satel-lites, as part of Europe’s Copernicus pro-gramme. The Copernicus Sentinel-1C and1D satellites, to be launched from 2021, are part of the Copernicus environmental monitoring and management programme coordinated by the European Commission, with ESA in charge of the space segment. The Copernicus programme is designed to guarantee European independence in the collection and management of data andto support Europe’s public environmental policies.

The Copernicus Sentinel-1C and D satelli-teswillbebuiltonthePrimaplatformde-veloped by Thales Alenia Space on behalf of the Italian space agency. They will each weigh about 2,300 kg at launch, and will be positionedatanaltitudeof700km,offe-ringagroundresolutionof5to25metres,depending on the operating mode selec-ted.Thales Alenia Space Italy was once again named prime contractor for these new satellites, as for Sentinel-1A and 1B. It isresponsible for the design, development and integration of Copernicus the Senti-nel-1C and 1D satellites, which will feature aC-bandsyntheticapertureradar(SAR),aswell as advanced data management and

transmission systems and onboard compu-ter. Thales Alenia Space will supply the transmission/reception(T/R)modulesandthe front-end electronics, the heart of the C-band SAR antenna, which will be manu-factured by Airbus Defence and Space to ThalesAleniaSpace‘sspecifications.www.thalesaleniaspace.com

Center fuselage for Japan’s first F-35

(df)NorthropGrummanhasdeliveredthecenter fuselage for Japan’s first F-35 Jo-int Strike Fighter, an F-35A conventionaltakeoff and landing (CTOL) aircraft desig-nated AX-1. The center fuselage is a core structureoftheF-35aircraft.Asaprincipalmemberof the LockheedMartin-ledF-35industry team,NorthropGrummandesig-ned and produces the center fuselage for all three F-35 variants: the F-35A; the F-35B

short takeoff vertical landing variant; andthe F-35C carrier variant.Each F-35 receives an alphanumeric desi-

gnationbasedon itsvariant type (A,BorC), thecountry forwhich itflies (e.g.,F=U.S., K=UnitedKingdom,X = Japan), andsequencenumberofthejet.ThefirstfourJapanese F-35As, including AX-1, will un-dergofinalassemblyandcheckout(FACO)at LockheedMartin‘s F-35 facility in FortWorth, Texas. The remaining 38 Japanese jets (AX-5 throughAX-42)will be comple-tedatJapan‘snewF-35FACOfacilityinNa-goya, Japan.www.northropgrumman.com

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France orders more A330 MRTT

(df) Airbus Defence and Space has recei-vedafirmorderfromtheFrenchDefenceProcurement Agency (DGA) for eight further A330 MRTT Multi-Role TankerTransport aircraft. These aircraft are thesecondtrancheof themulti-yearcontract

for 12 A330 MRTTs signed by the French Ministry of Defence in November2014. France therefore ordered nine aircraft intotal. The remaining three are scheduled to be confirmed in 2018,permittingdeliveriesofthe12aircraftbe-fore 2025.The first A330MRTT will be delivered toFrance in 2018, followed by the second in 2019, and the remainder at a rate of one or two per year. In French service the A330 MRTT will be powered by Rolls-Royce Trent 700 engines and equipped with a combina-tionoftheAirbusRefuellingBoomSystemand underwing hose-and-drogue refuelling

pods. Itwill also bepossible to configurethem in a variety of layouts carrying up to 271 passengers as well as medevac arran-gements including the French MORPHEE intensive care module carrying up to ten patientsaswellas88passengers.The combat-proven A330 MRTT has been orderedbysevennationswhichhavenowplacedfirmordersfor49aircraft,ofwhich26 have been delivered.www.airbusdefenceandspace.com

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5ISSUE 23 / 2015

Integrated platform management system for global combat ships

(df)L-3MarineSystemsUKhasbeenawar-ded a design development agreement from BAE Systems for the initial designanddevelopmentactivitiestosupportshipintegrationof its Integrated PlatformMa-

nagementSystem(IPMS)fortheUKRoyalNavy’sType26GlobalCombatShip.Using core technology developed by Mon-treal, Canada-based affiliate L-3 MAPPS,thecompanywillperformtheinitialdesignanddevelopmentactivitiestosupportshipintegrationatitsfacilitiesinBristol,BurgessHill and Barrow-in-Furness.The Type 26 Global Combat Ships are beingdesignedbyBAESystemsfortheUKMinistry of Defence to replace the Type 23 Frigates currently in service with the Royal Navy.“Our advanced IPMS will enable these next-generation ships to achievehigh levels ofoperational effectiveness under the most

adverseconditions,” saidRogerBaker,ge-neralmanagerof L-3MarineSystemsUK.“We are very pleased to be a key supplier to BAE Systems on the Type 26 Global Com-bat Ship programme.”The L-3 IPMS is based on proven and survi-vable control systems technology that has been delivered by L-3 MAPPS to over 160 ships and submarines in 18 navies wor-ldwide. The IPMS on the Type 26 Global Combat Ship will provide automated moni-toring and control of the propulsion, elec-trical, auxiliary and damage control sys-tems together with an embedded onboard team trainer.www.l-3com.com

First Swedish NH90 for anti-submarine warfare delivered

(wb) On December 17, 2015, Airbus Helic-optersdeliveredthefirstSwedishNH90infull anti-submarine warfare (ASW) confi-gurationtotheSwedishDefenceMaterielAdministration FMV (Försvarets Materiel-verk).The fully-qualified rotorcrafthasanentirely customizedmission system inclu-ding underwater sonar, tactical radar andhigh cabin for improved interior space. “Intermsofversatilityandcustomisability,theSwedishNH90ASWdemonstratesthebenefitsofanintegrated,highlypowerful,fly-by-wirehelicopterplatform,”saidWolf-gang Schoder, Head of Light and Govern-mental Programmes at Airbus Helicopters. Intotal,Swedenhasordered18NH90,13

equipped for search-and-rescue missions (SAR)andfiveinASWconfiguration.Intheframeoftoday’sdelivery,FMVandthema-nufacturerNHIndustrieshavealsosignedacontract to modify four already delivered NH90fromSARtoASWconfiguration,brin-ging the totalSwedishNH90fleet tonineASWandnineSARaircraft.Priortodelivery,theaircrafthasbeentho-roughly tested by the Swedish acceptance teaminDonauwörthandoverwaterinMa-rignane. Several military services around the globe arealreadyoperatingtheNH90insearch&rescue, tactical transport,ASWor surveil-lancemissionsoversea.“With260NH90salready delivered to 13 different nationsandnearly100,000flyinghours inopera-

tion,thiscombat-provenhelicopterisnowconfirming its worth at the hands of themost demanding customers around the globe,” said Schoder. Management of the NH90 program ishandled by the NHIndustries consorti-um, which is owned by Airbus Helicopters (62.5%),AgustaWestland(32%),andStorkFokker(5.5%).www.airbushelicopters.com

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New Pacific 24 RIBs

(df) BAE Systems has won a €19 million contract for60newPacific24Rigid Infla-tableBoats(RIBs)fortheRoyalNavy.Thisnext generation Pacific 24Mark-4will bedeployedonRoyalNavyships,suchasOff

Shore Patrol Vessels, aswell as the new Queen Eli-zabeth Class aircraft car-riers due to arrive in 2017. The RIBs are the work-horse of the Royal Navy,deploying from ship or shore at speeds of up to 38 knots (44mph) as a rapid response crafttoperformfastrescue,anti-piracyandcounter-narcoticsmissions.The high energy operations they performmeans the strain on crews can be huge. To

tackle this, the Pacific 24Mark-4 RIBwillinclude high performance shock absorbing seatswhichwillminimisecrewfatigue,al-lowing them to travel up to six-times thedistance.www.baesystems.com

6ISSUE 23 / 2015

Industry & Trade

Tosubscribe/unsubscribefromthisnewsletterpleasewriteanemailwith“Subscribe“or“Unsubscribe“inthe reference line to: esd.spotlight@mittler-report.de

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MW)KMW and Nexter complete

their association

(df) Krauss-Maffei Wegmann (KMW) andNexter Systems have completed their as-sociationonDecember15,2015.Withthistwo of the leading European manufac-turers of military land systems will opera-tejointlyundertheumbrellaofaholdingcompany under Dutch law with headquar-ters in Amsterdam, even though the com-panies originally are from Germany and France. The sole shareholders of each of the two companies have transferred all their sha-res to the holding company in the legal formofanN.V.; in returntheyhaveeach

received 50 per cent of the shares in the holding.Aspart of the completion, the superviso-ryboardofthejointholdingcompanyhasmetinAmsterdamforitsconstitutivemee-ting. It comprises seven members and ischairedbytheBelgiumnational,ChristianJourquin. The French owner appointed Jean-Severin Deckers (APE-State Holding Agency) and Bertrand Le Meur (DGA-French defense procurement agency) to thesupervisoryboard;theownersofKMWappointed Dr. Manfred Bode and Axel J. Arendt. Alongside the independent chair-man of the supervisory board, both share-holders appointed Antoine Bouvier (CEO of

MBDA)andProf.Dr.Dr.h.c.Utz-HellmuthFelcht onto the board as additional inde-pendent members. The shareholders’ mee-tingappointedKMWCEOFrankHaunandthenewCEOofNexterSystems,StéphaneMayer as Co-CEOs of the holding company.www.kmweg.dewww.nexter-group.fr

New structure of Rolls-Royce

(df) Rolls-Royce announced a new senior managementstructureas thefirststep inthe wide-ranging restructuring. The move willsimplifytheorganisation,driveopera-tionalexcellenceandreducecost;ensuringRolls-Royceisbetterplacedtodeliverlong-termprofitablegrowth.The current divisional structure of Aero-space and Land & Sea will end, removing a layer of senior management. From Janu-

ary1,2016,Rolls-Roycewilloperateasfivemarket facing businesses, with the Presi-dents of Civil Aerospace, Defence Aero-space,Marine,NuclearandPowerSystemsreportingdirectlytotheChiefExecutive.The Civil Aerospace business will comprise of the merged Civil Large Engines (CLE) and the Civil Small and Medium Engines (CSME) businesses.EricSchulz(currentlyPresidentof CLE) will become President of Civil Ae-rospace. Chris Cholerton will continue as

President Defence, Mikael Makinen will continue as PresidentMarine, Harry Holt(currently Group Operations Strategy Di-rector), has been appointed as President of Nuclearwitheffect fromJanuary1,2016.Dr. Ulrich Dohle will continue as CEO ofRolls-Royce Power Systems. The executi-ve team will be further strengthened next year with the appointment of a new Chief OperatingOfficer.www.rolls-royce.com

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a)Terma opens new officein Brussels

The Danish aerospace, defence and securi-ty company Terma announced the opening ofanewrepresentationofficeinBrussels,Belgium.“OpeninganofficeinBrusselsisalogical development of our wish to be close to our markets and partners. Brussels is the heart of Europe and sets the agenda on a broadspectrumofissuescriticaltooursec-tor. Being here, allows us to work more clo-sely with key partners and policy-makers

withinNATO, theEU institutions, industryorganizations, and customers,” says JørnHenrikLevyRasmussen,SeniorVP,MarketDevelopment.TermahassecondedAnneMetteMosekjærSøndergaard,Director,toheadtheBrusselsoffice.ShehasstayedwithTermaformorethan five years and has been responsiblefor a globalmarketing team dealingwithstakeholderoutreach,publicaffairs,exhib-itionsplanning,digitalmedia,andstrategiccommunication.

The new Brussels office is the latestaddition to Terma’scontinuous globalexpansion. With the headquarters in Denmark, Terma now, besides Brussels in Belgium, counts subsidiariesandoperationsintheNether-lands, Germany, U.S., Singapore, United ArabEmirates,UnitedKingdomandIndia.www.terma.com