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I'm at a point in the game where I really don't need the materials from downed UFOs. I know there are penalties for not shooting down UFOs, but are there any penalties for shooting it down and then declining to assault it?

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There are no penalties.

The panic will not change, and that is all that matters.

You will still get an A on your council report aswell.

I have confirmed this on Ironman Impossible, as I choose to ignore a downed battleship, and there was no negative outcome.

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