Israel’s Defense Ministry warns it may halt new production orders for Elbit Systems. A budget dispute with the Ministry of Finance threatens the supply of artillery shells to the Israel Defense Forces.
The conflict centers on the 2026 defense budget. The Defense Ministry requests increased funding to sustain military operations and replenish stockpiles.
The Ministry faces a significant debt burden to major suppliers like Elbit Systems due to delayed payments. This impasse creates uncertainty for Elbit’s future revenue streams and production schedules.