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Turkish defense manufacturer Otokar has accepted compensation payments totaling approximately ₺1,952 billion ($45.1 million) in a dispute with Romania's state defense procurement firm Romtehnica over schedule delays and missed local production milestones in one of Türkiye's largest land systems export contracts.
In a disclosure to Türkiye's Public Disclosure Platform (KAP), Otokar confirmed that Romtehnica submitted two separate compensation claims related to the Cobra II armored vehicle procurement program. The company accepted the payments while reserving all legal rights and continuing litigation to annul the claims.
"All 278 Cobra II vehicles produced in Türkiye have been shipped to Romania. 194 have entered the Romanian Army inventory. Acceptance procedures for remaining vehicles have been ongoing since December," Otokar General Manager Aykut Ozuner said in a statement to the state-run Anadolu Agency (AA).
The Cobra II contract, valued at €857 million, calls for delivery of 1,059 4x4 light armored tactical wheeled vehicles over five years beginning in the final quarter of 2025.
The first 278 vehicles are manufactured at Otokar's facilities in Türkiye, while the remaining 781 are to be produced at a facility in Romania.
Romtehnica submitted the first compensation claim of 191.8 million Romanian Lei, approximately ₺1.88 billion, arguing that Otokar failed to meet interim targets for local production preparations in Romania according to the contract timeline.
A second claim of 7.3 million Romanian Lei, roughly ₺72 million, relates to the late delivery of 194 vehicles from the first batch manufactured in Türkiye.
Otokar stated that the second payment is expected to be completed by January.
"The current situation relates to scheduling and interim targets in the work plan. There is no dissatisfaction regarding technical competence, capacity or production quality. The vehicles we delivered have begun to be used," Ozuner said.
Otokar filed a lawsuit seeking to annul the compensation claims while accepting the payments on their due dates. The company emphasized that legal rights are being reserved throughout the process.
"Discussions with our customer continue in a framework of mutual good faith and sense of responsibility. Our focus on the project continues with full intensity. Contract cancellation is not an issue," the Otokar general manager stated.
The compensation payments are anticipated to be expensed by offsetting revenues from the contract for 2025, according to the company's disclosure.
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Otokar maintained that interim delays will not impact the overall project timeline or objectives. "Some interim targets being delayed due to local reasons will not affect the project's total timing and objectives," Ozuner noted.
The company emphasized its technical capabilities and track record, saying, "Otokar is a global brand that has repeatedly proven its competence through deliveries to more than 70 end users in over 40 countries, including NATO and United Nations operations."
The general manager noted that 194 Cobra II vehicles are currently in use by the Romanian Army. "Similar applications can be seen in many defense projects worldwide," he added.
Otokar emphasized that the Romania facility represents a broader strategic commitment beyond vehicle supply, saying, "Beyond providing vehicles to the Romanian Army, Otokar began this project to provide Romania with a modern, NATO-standard land platform production facility. This objective continues with full strength."
"We are working with great sensitivity to ensure healthy defense industry production and provide Romania with a facility capable of exporting and becoming a NATO supplier," the general manager added.
Otokar cited previous successes in international markets as evidence of its ability to deliver. The company successfully completed a major 8x8 armored vehicle contract for the United Arab Emirates in 2017 and secured a critical order from Estonia, which it also completed successfully.
The Cobra II project encompasses comprehensive technology transfer to Romania, according to the Otokar General Manager.
"There is multi-dimensional and comprehensive technology transfer," Ozuner said, noting that "Cobra II vehicle production in Romania will cover all stages from sourcing to cutting, painting to assembly. In addition, testing capabilities will be provided to the country."
The agreement covers eight Cobra II configurations: armored personnel carrier, APC with remote weapon system, 120mm mortar carrier, 81mm mortar carrier, anti-tank, ambulance, CBRN reconnaissance vehicle, and combat engineering vehicle.
Otokar initially delayed public disclosure of the compensation claims to protect ongoing negotiations.
"Disclosure of matters in Romtehnica's payment claims could harm our company's legitimate interests during ongoing discussions between parties," Otokar said in the KAP disclosure.
The company noted that disclosure conditions changed when confidentiality could no longer be maintained.
"At this stage, as confidentiality cannot be maintained, disclosure is being made as postponement conditions have ceased to exist," the company stated.
The first compensation claims were submitted on Dec. 17 and Dec. 24, 2025.
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