Israeli-made UAS, Georgia, Russia and a British court

Take Israeli-made unmanned air systems (UAS) that are supplied to Georgia, a country that soon finds itself at war with Russia.

 

Add the fact that Russian fighter jets shot down some of them. Add the fact that following this, Moscow bought UAS from Israel, and on top of all that the fact that Georgia could not pay for the systems, and you get a script for a movie thriller.

 

The final episode (for now) in that complicated script was written just before Christmas, when Elbit Systems and the government of Georgia signed a settlement agreement that will end the dispute between them.

 

The focus of the dispute was the fact that the Georgians failed to pay for systems supplied to them, including UAS.

 

The settlement follows a lawsuit filed by the Israeli company against the Georgian government.

 

According to the settlement, Georgia will pay the Israeli company approximately $35m and also return to the company certain equipment and sub-systems that were supplied to Georgia in the past.

 

According to Elbit Systems, subject to the completion of its terms, the settlement brings this matter to a close, without having a material effect on the company’s financial results.

 

Elbit Systems had filed a $100m suit against the Georgian government in the UK’s High Court of Justice.

 

­Elbit Systems claimed that Georgia failed to pay for systems, including Hermes-450 UAS. Some of these were shot down by Russian Mig-29 fighters during the Russia-Georgia war.

 

The suit enabled us to have a look behind the scenes of weapon systems contracts that are always affected by external issues, in many cases very complicated ones.

 

The weapons market is very complicated and the parties involved are always ready for surprises.

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