“Priority – Ukraine”: Israeli Elbit Systems has suspended the modernization of Romanian IAR-99 – what’s behind this?

The Israeli defense corporation Elbit Systems Ltd. found itself at the center of a high-profile story when it announced the suspension of the modernization of IAR-99 Șoim training and combat aircraft for Romania. The reason is the reorientation of production capacities and specialists to projects related to supporting Ukraine.

For Romania, this was a serious blow to its defense program, and for Ukraine, a sign of deep changes: even a private defense giant from Israel is shifting its priorities to work within the framework of global cooperation to strengthen Ukrainian defense.

Details were reported on October 23, 2025, by the Romanian agency Agerpres.

What Happened

The Romanian aircraft manufacturing company Avioane Craiova SA, under a contract with the Romanian Ministry of Defense, was engaged in the modernization of IAR-99 aircraft — key for training F-16 pilots. Elbit Systems, which supplied software and avionics, declared force majeure, halting part of the deliveries.

The Romanian Minister of Economy, Digitalization, Entrepreneurship, and Tourism Radu Miruțe stated at a press conference that Elbit “received an order to temporarily suspend secondary projects and focus efforts on deals with companies that have contracts to assist Ukraine.”

He emphasized:

“Due to the ongoing war in Ukraine, many organizations worldwide are asking them to prioritize support for Kyiv, so they were unable to deliver part of the equipment to Romania on time. Avioane Craiova, which bears the main burden of the delay, also conveyed this argument to those to whom it must pay penalties.”

Consequences for Romania

Due to the suspension of deliveries, Romanian Avioane Craiova cannot complete the modernization contract and has already received fines amounting to 3.6 million euros. Despite this, the authorities are trying to find a compromise solution. Minister Miruțe reported that “two weeks ago, there was a partial software transfer, pilots conducted test flights, and the aircraft showed significant improvement.”

Currently, the software parameters are being adjusted, after which part of the modernized aircraft is planned to be handed over to the military. However, the legal aspect remains open: the Romanian Ministry of Defense is analyzing the possibility of recognizing the force majeure cited by Elbit Systems.

Ukraine and Priorities

In the official justification, Elbit Systems states directly: resources have been redirected to cooperation with companies working to assist Ukraine. This involves the production of components, software, and integration of military systems, which ultimately enter Ukrainian defense programs through international coalitions and European contracting chains.

This means that Elbit is currently involved in several levels of support for Ukraine:

1. Technological integration for control and navigation systems. Israeli engineers from Elbit help adapt solutions for aviation and unmanned platforms used on the Eastern European front.

2. Participation in European contracts focused on Ukrainian needs. Through contracts with partners in Poland, the Czech Republic, Germany, and Britain, the company is included in programs for supplying equipment and software modules that ultimately operate on Ukrainian territory.

3. Development and production of electronic warfare means. Part of Elbit’s new projects is dedicated to improving systems for protection against drones and radars — one of the key needs of the Ukrainian army.

4. Joint initiatives for training and digital platforms. The company is among the technological suppliers for projects on virtual training of crews and drone operators.

What They Say in Romania

The representative of the Avioane Craiova union Victor Peța stated that the enterprise “is not at fault for the delay, and the fines could lead to financial disaster and jeopardize the state program for re-equipping the army.” He asked the Minister of Defense Ionuț Moșteanu to intervene and help the company avoid punishment.

According to Peța, five modernized aircraft are already ready and have flown more than 150 hours, but are not certified due to the absence of the final version of the software, which Elbit is supposed to deliver. This delay has become the key reason for the current crisis.

Elbit Systems and the USA — Technological Alliance and Strategic Bridge to Ukraine

Elbit Systems is a private Israeli corporation closely linked to the American defense sector. The company is listed on NASDAQ (ticker ESLT) and the Tel Aviv Stock Exchange, with about 30% of shares owned by American investment giants — Vanguard, BlackRock, State Street, and others. The controlling stake (approximately 45%) is held by the Israeli Federmann Group — a family holding of businessman Mickey Federmann, who chairs the board of directors.

The American division Elbit Systems of America (Fort Worth, Texas) is officially certified as a Pentagon contractor. It supplies helmets for F-35, night vision systems, and Hermes drones, participates in C4ISR programs and NASA and U.S. Army training projects. Thanks to this infrastructure, Elbit can operate according to NATO standards and directly participate in international defense chains.

Through American contracts and FMF funding, the company legally participates in programs supporting Ukraine — from navigation modules and communication systems to elements of electronic warfare and optics, integrated into European platforms.

In fact, Elbit Systems is a private Israeli-American technological bridge, where Israeli capital and American control over defense standards converge at one point — in projects that strengthen Ukraine and reinforce the defense partnership of Israel, Washington, and Europe.

Context of Elbit Systems’ Decision

Elbit is one of the most influential Israeli companies in the military-technical sector. Since its founding in 1966, it has developed the production of avionics, electronics, and unmanned systems. In recent years, Elbit has been actively working in Europe, the USA, and Asia, but the years 2022–2025 have reshaped its entire geography.

After the start of the war in Ukraine, Elbit became involved in the mechanism of international technology distribution to support Ukrainian defense. This involves the supply of components for electro-optical systems, electronic warfare, drones, and software solutions for NATO platforms. Part of these products goes to Ukraine through European partners.

In fact, the decision to suspend secondary projects like the Romanian IAR-99 was the result of political-technological pressure — the West expects active involvement from Israel in the military aid chain. Elbit operates within this format, redistributing production lines and personnel in favor of projects focused on Ukrainian needs.

Significance for Ukraine and Israel

This episode demonstrates that in Israel, decisions are increasingly being made that reflect international solidarity with Ukraine, even within the private sector. Elbit Systems has become part of a global coalition of technological suppliers contributing to the renewal of Ukrainian military systems.

For Ukraine, this is an opportunity to:

• accelerate the integration of modern systems into its own defense,

• gain direct access to Israeli technologies through European chains,

• utilize Elbit’s experience in aviation, electronic warfare, and training.

For Israel, this is a way to strengthen its position in the European security system, demonstrating loyalty and flexibility within the framework of international cooperation.

Analytical Conclusions

1. The case with Romania is not a mistake, but a choice. Elbit consciously redirected resources, understanding that the Ukrainian direction is becoming central in the global defense economy.

2. Priority Ukraine is already a fact. This decision publicly confirms for the first time that the company postponed a European contract in favor of projects with a Ukrainian trace.

3. Elbit integrates into global logistics of assistance. Through European partnerships, the company supplies components for equipment that serves in the Ukrainian Armed Forces.

4. For Ukrainian industry — this is an opportunity for a new type of cooperation, including technology transfer, experience in training, and digital integration.

5. For Israel — a demonstration of technological strength and influence within the coalition of Western suppliers.

Conclusion

The story of the suspension of the modernization of Romanian IAR-99 aircraft is not a private incident, but part of a global process. Elbit Systems is shifting its work vector in favor of Ukraine, and this vector is not accidental. It shows that in the global defense economy, Kyiv is becoming the center of new technological attention.

When a company from Israel states that it is forced to postpone a European project to meet the needs of Ukrainian defense — it is a signal to everyone. Ukraine no longer asks for attention — it forms it. And it is decisions like those of Elbit Systems that make this transformation irreversible.