Turkish Air Force F-16 390 (R).
(photo credit: REUTERS/Umit Bektas)
Elbit Systems announced Sunday it stands to lose close to $65 million from its
2011 profits due to the Defense Ministry’s decision in December to stop the
delivery of sophisticated intelligence systems to the Turkish air
According to Elbit’s announcement to the Tel Aviv Stock Exchange,
it was still in talks with Defense Ministry director general Udi Shani about
receiving compensation for the ministry’s decision to nix the deal just weeks
before planned delivery.
In December, defense officials said although
Israel was working to improve ties with Ankara, the ministry was “responsible
for every product that receives an export license” and that it could not permit
the delivery of the intelligence-gathering systems to Turkey.
to do strictly with this system and should not impact the overall ties between
the countries,” an official said at the time.
The $140 million deal,
signed in 2009, was for the sale of the advanced infrared Lorop camera and
Developed by Elbit subsidiary El-Op, the camera is
installed in a pod, which can be carried on combat aircraft. The systems were
supposed to be delivered to Turkey in the coming months.
Ehud Barak said in a leaked speech in 2010 that Ankara’s newly appointed
intelligence chief was a “friend of Iran” who might betray Israel’s
Israel’s ties with Turkey hit rock-bottom in 2011, when Ankara
expelled the Israeli ambassador after the United Nations published its report on
the 2010 flotilla incident. The report justified Israel’s sea blockade over the
Since the flotilla, diplomatic and military ties have been at
a bare minimum.Reuters contributed to the report.
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