Elbit Systems reaffirms its commitment to deliver the Watchkeeper X tactical unmanned aircraft systems by mid-year, subject to final coordination between all parties involved, the company announced in a release.

Elbit Systems President Bezhalel Machlis, together with Lior Ben Dor, Ambassador of the State of Israel to Romania, met on Friday with the Minister of National Defense, Radu Miruta. The discussions focused on the progress of the Watchkeeper XR program, which is in the final stage of implementation.

'Elbit Systems appreciates the constructive dialogue and reaffirms its commitment to deliver the systems to the beneficiary by mid-year, subject to final coordination between all parties involved. The company emphasizes its solid partnership, over 23 years, with the Romanian Ministry of National Defense, considering the Watchkeeper XR program not just a supply contract, but a long-term strategic investment in the defense industry and national capabilities,' the cited document states.

The Watchkeeper XR systems are produced in Romania and include structural components, electronic systems, complete integration of UAVs [drones] and assembly of ground control stations, the cited source informs. This local production model directly contributes to the development of industrial capabilities and the consolidation of autonomy in the defense field.

Currently, Elbit Systems has over 1,000 employees in Romania and supports several thousand more jobs within the industrial ecosystem, operating seven local facilities.

Regarding the delivery schedule, the company notes that the delays were determined by cumulative factors, related to the security context in Israel and the region, as well as force majeure situations that affected defense programs globally. Watchkeeper XR represents one of the most advanced UAV configurations in its class, integrating modernized avionics systems, communications solutions, advanced sensors and extended operational capabilities, validated in real conditions. Elbit Systems reaffirms its firm commitment to the successful completion of the program and the continuation of its long-term partnership with Romania. Romania remains an important partner in the company's global operations, consolidating its role as a European hub for the production of advanced systems. We are confident that, through close cooperation between all parties involved, the program will be successfully completed, the release said.

Elbit Systems is a global defense technology company that develops, manufactures, integrates and supports a range of state-of-the-art solutions in multiple fields.

According to a release previously issued by the Ministry of National Defense (MApN), Friday's discussions at the ministry's headquarters aimed to clarify the delivery schedule and contractual responsibilities for the Watchkeeper X tactical unmanned aircraft systems (UAS) program.

'In this context, the Ministry of National Defense is considering all options provided for by the contractual framework, including the possibility of termination, depending on the company's ability to fulfill its obligations under the contract signed in 2023. The Ministry of National Defense appreciates Elbit's presence in Romania and the efforts made to achieve the objectives of the contract, but legal and contractual obligations cannot be optional,' the institution's release said.

The collaboration between the MApN and Elbit Systems includes programs such as the Class II tactical-operational UAS system, the Piranha 5 armored personnel carrier, the revitalization and modernization of IAR-99 aircraft, and electronic warfare systems against UAS.

On December 20, 2022, the framework agreement 02/267/2022 was signed with the Elbit Systems LTD company for the supply of the product, 'Class II tactical-operational UAS system' Watchkeeper X, with 7 systems planned to be purchased: 6 systems in the land configuration and 1 system in the naval configuration.

On June 19, 2023, the Subsequent Contract no. 1/2023 to Framework Agreement 02/267/2022, concerning 3 systems in land configuration, with delivery date 19 June 2025.

On October 8, 2023, Elbit Systems LTD invoked the occurrence of a force majeure event in the performance of the contract, caused by the start of the military Operation 'Iron Swords', for which reason it requested the postponement of the delivery deadline by 6 months, then, through the prior complaint, by 9 months.

Since the supporting documents provided by the company did not result in the granting of force majeure for 6-9 months, it was found that the force majeure event acted within the subsequent contract no. 1 only for a period of 3 months. Thus, the delivery date initially scheduled for June 19, 2025, was postponed by 3 months, to September 19, 2025.

On June 18, 2025, Elbit Systems LTD notified the buyer of the occurrence of the second force majeure event in the performance of the contract, caused by the start of the military operation 'Rising Lion', 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 22, 2025.

On March 4, 2026, the company requested the recognition of the third force majeure event in the performance of the contract, caused by the start of the military operation 'Lion's Roar' 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 22, 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-performance and/or improper performance within the agreed deadlines of the obligations assumed and/or incumbent upon it, the Seller owes the Buyer, as penalties, an amount whose estimated value, at this time, is 265,552,469.42 lei', says the MApN. AGERPRES(RO - writing by: Andreea Marinescu; EN - writing by: Bogdan Gabaroi)