Eritrea Demands Elbit be Prevented from Supplying Upgraded Aircraft to Ethiopia

Published by Israel's Business Arena on August 17, 1998


By Dror Marom - Minister of Defense Yitzhak Mordechai will decide in the next few days whether to order Elbit to cancel the supply of upgraded Mig 21 aircraft to Ethiopia, which requires them in its war with neighbouring Eritrea. This follows a recent approach to Israel from the Eritrean government, demanding that Elbit be prevented from supplying the aircraft to its enemy.

Ministry of Foreign Affairs spokesperson Aviv Shiron said in response: "The Eritrean government did indeed express concern at Israel’s intention to transfer aircraft to Ethiopia." Elbit Systems, Elbit’s military division, is subject to Ministry of Defense and Sibat (Defense Sales Administration) regulations, and defense establishment and political sources estimate that it will be forced to obey such an instruction if it is given.

Eritrea claimed in a recent letter to the Ministry of Finance that it was inconceivable that a country in no way involved in the dispute should support one of the sides. Israel is keen to strengthen Ethiopia in the war, in order to weaken Eritrea, which is close to extreme Islamic Sudan. Eritrea has no embassy in Israel.

Elbit bid against IAI in the tender for the upgrading of 30 Mig 21 aircraft in Ethiopia, but, for financial reasons, the contract was not concluded. The Ethiopian government was unable to finance the project. Ethiopia approached the companies in March-April this year with an urgent request that the aircraft be supplied, and Elbit proposed the transfer of ten completed aircraft from its upgrade production line in Romania, for $30 million.

Ethiopia operates 70 Russian made Mig 21 aircraft, and has run into difficulties in maintaining them since the revolution and the severing of ties with Russia. The overall value of the aircraft upgrade deal is likely to reach $130 million.

Elbit Systems president Yossi Ackerman said the company had not been informed of any change in the deal. The Ministry of Defense had no comment.



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