Politics

Milanović says US Offer has Strategic and Political Significance for Croatia

By 5 January 2022

ZAGREB, 5 January, 2022 - President Zoran Milanović said on Wednesday that the US administration's offer to provide the Croatian ground forces with armoured fighting vehicles also has  strategic and political significance for Croatia, criticising the government for slowness in decision-making.

"This offer would ensure the continuation of our very successful defence cooperation with the country that has one of the strongest armed forces and the biggest military industry in the world, Milanovć told a news conference in Zagreb, underscoring that the Minnesota National Guard uses the same version of the Bradley vehicles offered to Croatia.

The president said that stalling the decision sent a message to other potential partners and investors that no important decision could be made without the personal engagement of Prime Minister Plenković.

"This is not a good message," said Milanović.

Commenting on the offer, Milanović said that the seriousness of the US as a partner was confirmed by the US administration's decision to ensure additional financial assistance in the amount of $45 million for Croatia, which has been approved by the US Congress.

Furthermore, the US Department of Defense stated on 23 December that it would be possible to provide an additional 11 million dollars. "This is a total of $56 million in financial donation," the president said.

Asked about the cost of modernisation of the Bradley vehicle, Defence Minister Mario Banožić said that Croatia would pay $153 million, while the administrative cost of $45 million would be covered by the US government through a donation of equipment of the equivalent value.

Croatia would pay the $153 million over several years in accordance with the proposed plan for the delivery of the M2A2 ODS vehicle, and that would in fact be a purchase, Banožić said.

Bradley M2A2 ODS satisfies needs of Croatian armed forces, says president

Milanović said that the Bradley fighting vehicle has proved to be a successful platform for armour warfare, adding that the M2A2 ODS version of the Bradley vehicle  met the needs of the Croatian Armed Forces and ground forces, since there is no other solution in the offing.

"This solution can satisfy us for at least the next 10 years and perhaps even longer. And all that for 150 million dollars plus Value Added Tax."

Milanović noted that the purchase of brand new vehicles from other producers could be as much as five to eight times more expensive per vehicle.

Besides, the engagement of the Slavonski Brod Đuro Đaković Group to service the vehicles could provide an additional impetus and advantage for the Croatian industry, he added.

Asked by the press to comment on Minister Banožić's statement that the US offer concerned an older version of the Bradley M2A2 ODS vehicle and that the US Army is now using the M2A3 type, which was the topic of talks in 2017, Milanović said: "When we become a country of 330 million people with GDP of 70,000 dollars, then we will negotiate differently."

Milanović accused Banožić of lying that the US had changed its offer.

"I do not talk with him, it is not true, it is a lie," the president said insisting that some people have been nurturing the fantasy that Croatia will get the equipment currently used by the Americans.

"They told us early on that it was not realistic and that it was not on the table," he added.

"This is about providing assistance to the Croatian Army," Milanović said, adding that he could not understand that anybody could oppose such an offer.

Asked how much the upgrade could cost, he said it could cost a total of $150 million plus Value Added Tax.

"This is such a small amount for such a great thing," the president said, adding that his only interest is to see Croatia growing stronger rather then weaker.

"We can get something that we don't have for $150 million instead of $1.2 billion. There is no alternative to this," said Milanović.

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