Defence Minister’s meeting with the President of Elbit Systems Company

On Friday, April 17th, Minister of National Defence, Radu Miruță, had a meeting, at the MoND headquarters, with Bezhalel Machlis, President of Elbit Systems Company, in the presence of H.E. Lior Ben Dor, the Ambassador of the State of Israel to Romania.

 The talks focused on identifying concrete measures to redress delays in the implementation of the ongoing programs, as well as clarifying the delivery schedule and contractual responsibilities for the Watchkeeper X Tactical Unmanned Aircraft Systems (UAS) Program.

 In this context, the Ministry of National Defence is considering all options provided by the contractual framework, including the possibility of termination, depending on the company's ability to fulfill its obligations undertaken according to the contract signed in 2023.

 The Ministry of National Defence appreciates Elbit's presence in Romania and the efforts made to achieve the objectives stipulated in the contract, but legal and contractual obligations cannot be optional.

 

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The MoND collaboration with the Israeli company targets programs such as the tactical Unmanned Aerial Systems (UAS), the 8x8 Piranha 5 Armored Personnel Carrier, the revitalization and modernization of IAR-99 aircraft, and electronic warfare systems against UAS.

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On December 20th, 2022, the framework agreement no. 02/267/2022 was signed with ELBIT SYSTEMS LTD Company for the supply of " Watchkeeper X tactical UAS", stipulating the purchase of 7 systems: 6 systems with ground configuration and 1 system with ship-board configuration.

On June 19th, 2023, the Subsequent Contract no. 1/2023 to the Framework Agreement no. 02/267/2022 was signed, which stipulates the delivery of 3 systems with ground configuration, by June 19th, 2025.

On October 08th, 2023, ELBIT SYSTEMS LTD invoked the occurrence of a force majeure event in the performance of the contract caused by the start of "Iron Swords" military Operation, which is why it requested the postponement of the delivery term by 6 months, then, through the prior complaint, by 9 months. Since the supporting documents provided by ELBIT SYSTEMS LTD did not result in the granting of force majeure for 6-9 months, it was found that the force majeure event was applicable only for a 3-month period within the subsequent contract no. 1. Thus, the initially scheduled delivery term – June 19th, 2025, was postponed by 3 months, until September 19th, 2025.

On June 18th, 2025, ELBIT SYSTEMS LTD notified the buyer about the occurrence of the second force majeure event in the performance of the contract, caused by the start of "Rising Lion" military Operation, for which reason it requested the postponement of the delivery term by 33 days. Based on the supporting documents provided, the buyer acknowledged to the seller the occurrence of a force majeure event in the performance of the contract for a period of 33 days. In this regard, the delivery term was postponed by 33 days, until October 22nd, 2025.

On March 4th, 2026, ELBIT SYSTEMS LTD requested the recognition of the third force majeure event in the performance of the contract, caused by the start of "Lion's Roar" military Operation launched by Israel and the USA against Iran. The force majeure event was not recognized by the buyer, as it occurred after the delivery deadline stipulated in the contract – October 22nd, 2025, and the seller cannot be exempted from contractual liability given that the contractual obligations had to be performed before the occurrence of the invoked event.

According to the contractual provisions, for the non-execution and/or improper execution within the agreed deadlines of the obligations undertaken and/or incumbent upon, the Seller owes the Buyer, as penalties, an amount whose estimated value, at this date, amounts to 265,552,469.42 lei.

The Press Office