Romania is considering canceling a strategic contract worth more than $400 million to purchase Watchkeeper X tactical UAV systems from Elbit Systems, citing significant delivery delays and the impact of the war in the region.
Romanian Defense Minister Radu Miruta said earlier this week that his ministry is examining the legal option of terminating the agreement, after the drones — originally scheduled for delivery in summer 2025 — have yet to be supplied. He warned that if delays continue, the systems could lose their operational relevance.
The Watchkeeper X UAV, based on Elbit’s Hermes 450 platform, is designed for intelligence gathering, surveillance and target acquisition. It is produced by Elbit Systems’ UK subsidiary and meets NATO standards. In December 2022, the company agreed to sell Romania seven systems, comprising 21 UAVs. An initial order worth about $180 million was placed in June 2023.
However, the Israeli company has cited delays linked to the fighting in the Gaza Strip and, according to Romanian officials, submitted three requests to invoke force majeure. The first two were approved, but a third request for an additional six-month extension was rejected by Bucharest.
According to Miruta, penalties accumulated so far against the company total about 60 million euros and continue to grow daily. Romania’s Defense Ministry said there is a legal basis to cancel the contract, including concerns that the technology could become outdated by the time it is delivered. The minister confirmed that Romania has already made payments under the deal, but declined to detail their fate if the contract is canceled.
The dispute also involves critical components for the systems, including radar systems supplied by France’s Thales. According to reports, these components were initially sent to Israel for integration but have not yet been transferred to Romania and may still be in Israel.
Elbit Systems said in response that it is advancing the UAV development and production project for Romania in line with plans and that it is in advanced stages ahead of delivery. The company said the systems are based on extensive operational experience and incorporate advanced and unique capabilities proven in complex operational arenas.
“Despite challenges stemming from the exceptional security situation in Israel, which has been recognized as a force majeure event by customers worldwide, the project has been given high priority,” the company said. “The systems are prepared for final acceptance tests in Romania toward the end of April, subject to regulatory approvals. Production, including the prototype, is being carried out in Romania as part of a localization program with Aerostar and Eurobody, as part of a long-term strategic investment in the country. Elbit Systems values its productive cooperation with Romanian partners in previous deals and expects similar collaboration on this project to ensure its successful completion.”