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The National (Scotland)
The National (Scotland)
National
Lucy Jackson

Labour 'close to signing' major £2bn contract with Israel's largest weapons firm

THE Labour Government is reportedly close to signing a major multi-billion-pound contract with Israel's largest weapons manufacturer.

If the £2 billion ($2.69bn) deal goes ahead, it would see Elbit Systems train up to 60,000 British soldiers a year.

Elbit Systems provides around 85% of Israel's drones and land-based military equipment.

The arms firm has played a major role in supplying Israel with weaponry for its genocide in Gaza, which has killed more than 62,000 Palestinians.

The company's UK wing, Elbit Systems UK, is close to winning a major contract that would make it a "strategic partner" of the Ministry of Defence (MoD).

Elbit is reportedly bidding against Raytheon for the Army Collective Training Service contract, after the MoD reduced the bidders to two in February.

If Elbit wins the contract, it will work with the MoD to transform military training "through digitalisation, simulation, a different relationship with industry, and by changing how and where the military trains". 

The National understands that the competition for the award is still ongoing and no agreement has yet been reached.

The potential deal was first revealed by Private Eye this week, and was subsequently reported by Middle East Eye.

Elbit Systems was one of the major targets for Palestine Action group, before it was proscribed as a terror organisation on July 5.

On July 1, activists blocked the entrance to the firm's factory in Bristol, in England, where they covered the building in red paint to “symbolise Palestinian bloodshed”. 

Activists in Scotland have also targeted Elbit Systems. In May, two companies linked to the weapons manufacturer - Allianz and BNY Mellon - were sprayed with red paint by Palestine Action.

Since the proscription order came into effect, membership of or support for the direct action group is a criminal offence punishable by up to 14 years in prison.

In July, a report by Francesca Albanese, the UN's special rapporteur for Palestine, said that "for Israeli companies such as Elbit Systems ... the ongoing genocide has been a profitable venture".

Since 2023, Elbit's UK arm has run the MoD's Project Vulcan, a £57m contract of simulation-based training for tank crews.

If the new deal goes through, it would mark a significant step up in the company's relationship with the MoD.

It comes as pressure is growing on the UK Government to announce a full arms embargo on Israel.

In September last year, the Labour Government suspended 30 out of around 350 arms export licences to Israel.

However, licences for parts for F-35 fighter jets, which are directly used in Gaza, were among those exempt from the embargo.

Calls for a full arms embargo on Israel have continued to grow, with the UK Government insisting it is not sending weapons directly to Israel.

Instead, the parts are sent to the F-35 "programme", an international defence programme which produces and maintains the fighter jets, with the UK contributing components for both assembly lines and an international pool.

While Israel is not one of the "partner nations" of the programme, it is a customer.

Private Eye said it had asked the MoD if it would be appropriate to "give a company so involved in the Gaza war such a major contract".

However, the magazine added that the MoD did not respond.

An MoD spokesperson told The National: “Like many European allies, the UK sources defence components from a range of international suppliers based on operational requirements, value for money, and compliance with our security and legal obligations, with all suppliers subject to rigorous due diligence.   “The competition for the Army’s Collective Training Transformation Programme (CTTP) remains ongoing.”

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