🪖 Taurus In Retrograde? ♉

Plus: Saab scores $1.2 billion rifle contract with Poland

Hi there! 👋 In Moscow, it's all champagne and caviar as leaked talks spill the beans on Germany's plans to send Taurus missiles to Ukraine. NATO's not impressed, and Russia's loving the drama.

Meanwhile, Saab's making bank with a fat $1.2 billion contract in Poland, and Denmark's throwing around cash like confetti for some fancy new radars. Oh, and Israel blew up Hamas’s largest tunnel yet, spanning 4kms.

But hold onto your hat, because China's flexing its budget with a 7.2% defense spending hike, doubling the military budget under President Xi’s tenure.

Today’s edition is a 4.9 minute read:

• 🇷🇺 Russia: German brass caught discussing giving Taurus missiles to Ukraine. NATO's miffed, Germany scrambles to save face. Moscow cries foul, accuses Germany of plotting strikes on it. Chancellor Scholz hesitates on missile move, playing it cool with Russia.

• 🇵🇱 Poland: Saab lands a cool $1.2 billion deal with Poland for Carl-Gustaf M4 rifles, ammunition and training. Rollout starts June; contract goes till 2027. Poland beefs up army by 60%. Looks like Saab's shooting for the stars!

- The WarLytics Team

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📰 THE WORLD TODAY

1. 🇷🇺 Russia: A leak by Moscow revealed high-ranking German military officials discussing sending Taurus missiles to Ukraine. The security lapse prompted NATO allies to criticize Germany and open an internal investigation. Moscow claims the leak exposes German plans for strikes on Russian territory. German Chancellor Scholz hesitated to send the missiles, wary of escalating conflict with Russia.

2. 🇵🇱 Poland: Saab has secured a $1.2 billion contract with Poland to supply Carl-Gustaf M4 recoilless rifles, ammunition, and training equipment. The deal, expected to be finalized by the end of June, spans 2024 to 2027. Poland aims to increase its army by 60%. Saab, also establishing a Carl-Gustaf factory in India, enjoyed a record year in 2023.

3. 🇩🇰 Denmark: Denmark initiates a €220 million competition to replace coastal radars in Bornholm, Skagen, and the Faroe Islands. The project aims to acquire three Fixed Air Defence Radar (FADR) systems, featuring advanced 3D phased-array Primary Surveillance Radar, Secondary Surveillance Radar, and Control Units. The radar systems have the ability to detect tactical ballistic missiles.

4. 🇮🇱 Israel: The IDF destroyed the largest terror tunnel found in northern Gaza since the Israel-Hamas war's beginning. The four-kilometer-long tunnel, discovered in December, terminated near the Erez crossing. Joint efforts involving IDF units and the Defense Ministry located and demolished the tunnel, reaching a depth of 50 meters. The operation provided valuable information on Hamas' tunnel projects, involving special digging machines and a significant investment.

5. 🇨🇳 China: China plans a 7.2% increase in defense spending this year, doubling the military budget in his 11-year tenure. The rise, exceeding economic growth forecasts, aligns with last year's pattern. Notably, Beijing adopts a tougher stance on Taiwan, removing "peaceful reunification" from Premier Li Qiang's report.

DEEP-DIVE

IDF Destroys Largest Gaza Terror Tunnel

Background:

The IDF destroyed the largest terror tunnel found (yet) in northern Gaza. The four-kilometer tunnel, detected in December 2023, was near the Erez crossing between Israel and Gaza, but didn't breach Israeli territory.

IDF units, with support from the Defense Ministry, located and demolished it, revealing even more of Hamas' extensive tunnel network. Special digging machines were reportedly used, exposing Hamas' access to sophisticated technology.

Key Takeaways:

• Exposing Additional Routes: Exploration of the tunnel revealed shared routes connected to sewerage, electricity, and communication infrastructure, areas wide enough to facilitate the movement of vehicles inside it, and weapons caches.

• Technological Insights: The operation provided valuable information about Hamas' tunnel project, shedding light on the use of special digging machines and the substantial investment made by the terrorist group.

• Significant Threat Mitigated: Destruction of the largest terror tunnel in northern Gaza marks a significant achievement in neutralizing a major Hamas artery and threat to Israeli security.

🌏 ON ANOTHER NOTE…

1. 🇪🇺 European Union: Estonia, France, and Poland are urging the European Commission and other EU member states to commit more substantial funding to Europe's defense industry, emphasizing the need for concrete financial options in the proposed European Defence Industry Strategy (EDIS).

2. 🚢 Yemen: The sinking of the Rubymar, a British-owned cargo ship attacked by Houthi terrorists in the Red Sea, poses a severe ecological threat. Carrying oil and fertilizer, the vessel's destruction risks damaging the Red Sea's coral reefs, fishing industry, and desalination plants that supply millions with drinking water, with a 30 km oil slick already observed.

3. 🇺🇸 USA: Congress has not yet passed a budget for fiscal year 2024, increasing the likelihood of a full-year continuing resolution. If enacted, the Department of Defense would face a $12 billion loss in buying power, requiring significant budget reallocation and potentially hindering the military's ability to respond to crises.

4. 🇬🇧 UK: The UK Ministry of Defence has awarded Babcock a £560 million ($710 million) contract to modernize the Royal Navy's second Vanguard-class ballistic missile submarine, HMS Victorious. The refurbishment will ensure the submarine remains operational until the 2030s to support the UK's nuclear deterrent capabilities.

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