The suspension took effect on 31 July 2025 and follows a multinational investigation into bribery inside NATO’s procurement arm. Multiple European media outlets published coordinated findings detailing alleged misconduct tied to major defense suppliers.

Elbit Systems is Israel’s largest defense company, reporting $6.8 billion in revenue in 2024, and has supplied NATO members with munitions and missile defense systems for more than a decade.

NATO Procurement Under Criminal Scrutiny

NATO’s decision centers on a corruption probe inside the NATO Support and Procurement Agency (NSPA), which manages defense acquisitions for all 32 NATO member states.

Investigators allege that defense firms paid millions of euros in bribes to former and current NSPA officials in exchange for inside access to classified tender information.

The suspension blocks Elbit from participating in new contract competitions and freezes ongoing collaborations connected to the investigation.

NATO said the action was taken due to “serious allegations indicating that Elbit may have engaged in criminal practices, including irregularities in the awarding of contracts.”

“Criminal Organization and Bribery”

The investigation identifies an Italian consultant, Eliau E., as a central intermediary between Elbit and NATO procurement officials.

An international arrest warrant has been issued against him on suspicion of membership in a criminal organization and bribery. He operated multiple consulting firms allegedly used to channel illicit payments for securing NATO contracts.

Belgian authorities also named Guy M., a former Belgian defense official who previously worked for the NSPA, as the main domestic suspect.

Prosecutors allege he received nearly €2 million in bribes in exchange for steering defense contracts, with charges including corruption, money laundering, and criminal conspiracy.

Dutch Arrest and Wider Fallout

In May, Dutch authorities arrested Hans de J., a former senior buyer for Dutch military ammunition procurement.

Prosecutors believe he accepted bribes from defense companies in 2023.

NATO Secretary-General Mark Rutte responded to the widening scandal by stating that “the lowest stone must be turned over” during the investigation.

Because Elbit holds multiple active contracts with the NSPA, the suspension affects weapons deliveries to NATO, including munitions intended for Ukraine.

According to Follow the Money journalist Jesse Pinster, ammunition supply contracts are among the most sensitive systems impacted by the halt.

Contracts, Revenue, and National Workarounds

Over the past 10 years, NATO members have spent tens of millions of euros purchasing Elbit equipment such as ammunition and anti-missile systems.

Follow the Money reported the true total may be substantially higher because many NATO contracts remain classified.

The suspension applies only to NATO’s centralized procurement agency. Individual NATO states remain free to contract Elbit directly.

The company stated it could not comment on the reporting because it had “no knowledge of the allegations.”