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Elbit Systems Says Dispute Settled with Georgia

Elbit Systems Ltd., Israeli defense electronics company from which Georgia has bought unmanned aerial vehicles several years ago, said it had signed a deal with Georgia settling "all claims and disputes."

In April, 2011 the Elbit Systems said it had filed a lawsuit in the High Court of Justice of the United Kingdom for Georgia’s failure to pay USD 100 million under several contracts signed in 2007.

"According to the settlement, Georgia will pay the Company an amount of approximately $35 million and will also return to the Company certain equipment and sub-systems, that were supplied to Georgia by the Company in the past, against the full release of the initial claims," Elbit Systems said in a statement on its website on December 29.

"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," it said.

Georgia purchased Hermes 450 reconnaissance drones from Elbit Systems. President Saakashvili said in April, 2008 that Georgia had about 40 such drones.

At least three of these drones – the Abkhaz side claimed seven – were shot down over the breakaway region in a period between March 18 and May 12, 2008.


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