[Boycott - Economic - World]
Israel Fear: Turkey may pull deals with Israel
Arie Egozi, Ynetnews.com
15 January 2009
Defense establishment says Ankara's growing vex with Israel's Gaza offensive may result in canceling ongoing contracts, suspending future negotiations
The military industries have expressed concerns that the Israeli offensive in Gaza may have an unforeseen industrial backlash on their out-of-state contracts.
Sources in the industries fear the mounting objections to the Gaza campaign noted in Muslim countries, especially Turkey, may place various business ventures at risk.
"Right now we fear that current contracts may be dropped and the deals which are being negotiated may be put on indefinite hold," said a source in one of the industries closely linked with Turkey.
The value of the ventures which may be at risk amounts to circa $2 billion.
The industries' concerns are based on several recent statements made by Turkish officials, condemning the operation in the Strip.
Earlier this week, Turkey's Defense Minister Vecdi Gonul was quoted as saying that Ankara "has no pending military acquisition deals with Israel at this time."
The Turkish military is usually enthused about obtaining Israeli-made military systems, which development is based on vast operational experience.
The military industries are especially concerned for the future of a recent, $141 million deal, signed between Elbit Systems Ltd. and Israel Aerospace Industries (IAI) and the Turkish Air Force. The deal calls for the IAI and Elbit to supply Turkey with Air and Space Imagery Intelligence Systems (IMINT) across a four-year period.
Despite growing concerns, the military industries shy from any public statements: "The relationship with Turkey is strained as it is," said a defense establishment source. "The Turkish Military had always pushed for deals with Israel, even after the Muslim government came to power. It has always been a tricky situation and now it has become even harder."
Elbit, IAI awarded $141m deal with Turkey
Companies' subsidiaries to supply Turkish Air Force with space imagery intelligence systems across four years
Elbit Systems Ltd. and Israel Aerospace Industries (IAI) signed a $141 million deal with the Turkish Air Force on Thursday.
The contract, which calls on the IAI and Elbit to supply the Turkish Air Force with Air and Space Imagery Intelligence Systems (IMINT) within a four-year period, will be carried out by Elbit subsidiary ELOP and the IAI's Elta Systems Group.
The Turkish side of the operation will be headed by Aselsan, an affiliated company of Turkish Armed Forces Foundation, which specializes in radar, electronic warfare and intelligence systems technologies.
Elbit and the IAI will share the $141 million deal, with $87 million going to the former and $54 million to the latter.
"We are very proud of the fact that the Turkish Air Force, which is considered one of the most advanced in the world, has chosen our intelligence systems for its airborne missions," said ELOP CEO Haim Rousso.
Nissim Hadas, who heads Elta, added that the company was "proud to cooperate with ELOP on this project."
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