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Israeli company to lose $65 million as military deal with Turkey cancelled

February 17, 2014 at 11:15 pm

Press sources have reported that an Israeli company that produces military merchandise is about to incur losses worth tens of millions of dollars as a result of the Israeli Defence Ministry’s decision to cancel one of its military deals with Turkey.

The Israeli English Language newspaper, the Jerusalem Post, reported on its website that the Israeli military merchandise company, Elbit Systems,  is about to lose 65 million dollars of its annual profits for 2011, after the IDF terminated the military deal for the delivery of developed  intelligence systems to the Turkish Air Force.

The newspaper added that the Israeli company is negotiating with the IDF in an attempt to collect financial compensation for the damage which may affect it as a result of the cancellation of the deal just a few weeks before its completion. The cancellation is a response to Israeli ministry orders to stop providing Turkey with developed military equipment in light of deteriorating relations between Tel Aviv and Ankara.

It is worth-mentioning that the company in question, Elbit Systems, and Israeli Military Aerospace Industries signed the deal with Turkish company Ersilan. Projected profits from the deal were expected to be in the region of 87million dollars, with Military Aerospace Industries gaining $ 54 million dollars of that total.