anneinpt.wordpress.com) Further fallout from Israel’s deteriorating relationship with Turkey has hit the Israeli defence firm Elbit.....then Turkey torpedoes Israeli participation in NATO exercise, NATO reconsiders, Turkey bashes Israel (
Elbit Systems announced Sunday that it stands to lose close to $65 million from its yearly profits for 2011 due to the Defense Ministry’s decision in December to stop the delivery of sophisticated intelligence systems to the Turkish Air Force.
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 that although Israel was working to improve ties with Ankara, the ministry “responsible for every product that receives an export license” and that it could not currently permit the delivery of the intelligence- gathering systems to Turkey.
“This has to do strictly with this system and should not impact the overall ties between the countries,” an official said.
The $140 million deal, signed in 2009, was for the sale of the advanced infrared Lorop camera and associated equipment. 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.
Turkey succeeded in thwarting the navy’s participation in Active Endeavor, it has, however, failed to prevent Israel from upgrading its ties with NATO. Defense officials said this week that the sides were on the verge of signing a new cooperation agreement that would lead to a significant upgrade in relations.
Israel is also considering a request by NATO to open an office at its headquarters in Brussels. Defense officials said that the offer was still open and that it was being “positively considered” by the government.
It also appears that Israel’s un-invitation is being reconsidered by NATO.
NATO said Friday it is considering an Israeli offer to contribute a warship to the alliance’s naval patrol in the Mediterranean, despite Turkey’s opposition.
Israel is a member of the Mediterranean Dialogue, a NATO outreach program with seven friendly nations bordering on that waterway. Romero said the alliance is prepared to enhance practical cooperation with all partner nations in the region, including Israel.
Some NATO governments have opposed past attempts to forge closer cooperation with Israel, saying that could hurt the alliance’s relations with other Muslim states, including Afghanistan, which remains NATO’s top operational priority.