Janap’s Itochu to terminate Israel’s Elbit pact over war on Gaza

The aviation unit of Japan’s Itochu Corp  will terminate its strategic co-operation with Israel’s defence company Elbit Systems Ltd by the end of February over the ongoing Israeli war on Gaza, Reuters reported, citing the Japanese trading house’s executive on Monday.

Itochu Aviation, Elbit Systems, and Nippon Aircraft Supply (NAS) signed the strategic co-operation memorandum of understanding (MoU) back in March 2023.

Tsuyoshi Hachimura, Itochu’s Chief Financial Officer, explained that the company intends to terminate the partnership following a World Court ruling issued last month that ordered Israel to stop acts of genocide against Palestine and increase aid to civilians.

“The partnership is based on a request from the Japan’s defence ministry for the purpose of importing defence equipment for the Self-Defense Forces necessary for Japan’s security, and is not in any way related to the current conflict between Israel and Palestine,” Hachimura further said during an earnings news conference.

“Taking into consideration the International Court of Justice’s order on January 26, and that the Japanese government supports the role of the Court, we have already suspended new activities related to the MOU, and plan to end the MOU by the end of February,”

The Japanese company reported a 10.3 per cent decline in net profit from April to December, citing decreased earnings from energy trading and falling coal and pulp prices.

In the nine months ending December 31, it reported a profit of 611.7 billion yen ($4.1 billion), down from 682.2 billion yen in the same period the previous year.

The trading company adhered to its 800 billion yen full-year profit forecast through the end of March, which was less than the 821 billion yen mean estimate in a poll conducted by LSEG among nine analysts.

The death toll in Gaza has been above 27,000, according to the Palestinian Health Ministry.

($1 = 148.3000 yen)