Itochu of Japan to terminate partnership with Israel’s Elbit following ICJ ruling on Gaza
Itochu Corp’s aviation unit has announced that it will be terminating its strategic cooperation with Israeli arms company Elbit Systems Ltd by the end of February. This decision comes in light of the ongoing conflict in Gaza, as stated by an executive from the Japanese trading company on Monday.
Itochu Chief Financial Officer Tsuyoshi Hachimura has announced that the company intends to terminate its partnership following the International Court of Justice’s recent ruling for Israel to take immediate action to prevent genocide against Palestinians and provide more support to civilians.
During an earnings press conference, Hachimura clarified that the partnership was initiated at the request of Japan’s defense ministry to facilitate the import of essential defense equipment for the Self-Defense Forces, aimed at ensuring Japan’s security. Importantly, Hachimura emphasized that this initiative is completely independent of the ongoing conflict between Israel and Palestine.
“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,” he said.
Itochu Aviation, Elbit Systems and Nippon Aircraft Supply (NAS) signed the strategic cooperation memorandum of understanding (MoU) in March 2023, seven months before the outbreak of the war.
As for Israel-related business, Itochu has small fintech investments and a car sales business, but it faces no problems with debt collection or other issues, Hachimura said.
Itochu reported a 10.3 percent drop in April-December net profit due to lower prices of coal and pulp as well as smaller gains from energy trading.
It posted a profit of 611.7 billion yen ($4.1 billion) in the nine months through 31 December compared with 682.2 billion yen a year earlier.
The trading company stuck to its full-year profit forecast through end-March of 800 billion yen, below the 821 billion yen mean estimate in a poll of nine analysts compiled by LSEG.
(Reuters)
