Poland has reportedly scrapped talks on a $3.5bn deal to purchase EC-725 Caracal helicopters from Airbus, according to the Ministry of Economic Development.
If the ministry went ahead with this deal, Airbus would have delivered up to 50 EC-725s to the nation.
AFP quoted the ministry as saying: "Poland is ending offset talks with Airbus Helicopters connected to the contract to purchase multipurpose Caracal helicopters for the Polish army.
"The differences in the negotiating positions of both sides preclude a compromise, so further negotiations are pointless.”
The deal was announced by the previous government in 2014 to improve military capabilities amid regional tensions over Russia's annexation of Crimea from Ukraine that year.
The ministry was quoted by Reuters as saying: "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.”
Powered by two Turbomeca Makila 2A turboshaft engines, each providing 1,800kW of power, the aircraft is capable of performing a wide range of missions: tactical troop transport, special operations, search-and-rescue, combat search-and-rescue, maritime surveillance, humanitarian support logistic ground support, medical evacuation and shipborne operations.
Currently, Kazakhstan, Indonasia, Malaysia and Thailand operate the EC 725 aircraft.