Japan’s Itochu Corp’s aviation unit is set to terminate its strategic cooperation with Israel’s defense company, Elbit Systems Ltd, by the end of February, according to an executive from the Japanese trading house. The memorandum of understanding (MoU) for strategic cooperation was initially signed in March 2023 involving Itochu Aviation, Elbit Systems, and Nippon Aircraft Supply (NAS).
Itochu’s Chief Financial Officer, Tsuyoshi Hachimura, clarified that the decision to end the partnership is a response to a recent World Court ruling that instructed Israel to cease actions amounting to genocide against Palestine and to enhance aid to civilians. Despite the connection between the aviation unit and Elbit Systems, Hachimura stressed that the partnership was primarily established to fulfill Japan’s defense ministry’s request for importing defense equipment necessary for Japan’s security.
In light of the International Court of Justice’s order on January 26 and the Japanese government’s support for the court’s role, Itochu has already suspended new activities related to the MoU and plans to conclude it by the end of February.
The announcement comes amid ongoing conflicts between Israel and Palestine, with the death toll in Gaza surpassing 27,000, according to the Palestinian Health Ministry.
Itochu Corp reported a 10.3% decline in net profit for the nine months ending December 31, citing reduced earnings from energy trading and falling coal and pulp prices. The company adheres to its 800 billion yen full-year profit forecast through the end of March.
