- Israel clinches largest-ever defense deal with Germany for $3.5 billion after securing US approval
- The Arrow 3 interceptor, manufactured by Israel Aerospace Industries, is being jointly developed by Israel and the US.
- While Israel has turned down requests to provide Ukraine with weapons, it has sent humanitarian aid.
- Although Israel has long had close economic and military links with Western European countries, the deal with Germany could draw the attention of Russia.
- Germany will buy the advanced defense system coined Arrow 3, which is designed to intercept long-range ballistic missiles.
- Germany launched the European Sky Shield Initiative last year with 17 other nations including the United Kingdom and Sweden, a joint European air defense system.
The United States approved a $3.5 billion sale of Israel’s Arrow-3 missile defence system to Germany on Thursday, clearing the way for delivery in 2025 and full operational deployment by 2030, Israeli officials said. The U.S. is a partner in the Arrow project, which was developed jointly by the Israel Missile Defence Organization and the United States Missile Defense Agency.
The Germany deal, which would be Israel’s biggest-ever defence sale, follows a European arms build-up in response to Russia’s war in Ukraine.
Israel and Germany will sign a Letter of Commitment, with a $600 million initial payment, to commence work on the project, a statement by Israel’s Defence Ministry said, adding that the full contract will be ready to sign by the end of 2023.
Using a detachable warhead that collides with the target, it is designed to intercept ballistic missiles outside the earth’s atmosphere, an altitude allowing for the safe dispersal of any non-conventional warheads. Germany has said it expects its air force to take delivery of Arrow-3 by the fourth quarter of 2025.
Moshe Patel, head of the Israeli Missile Defence Organization, told reporters that would be the first “milestone” with another coming when the German Arrow-3 achieves “full capability, around 2030”. Additional German spending on Arrow-3 could raise the deal’s value to $4 billion, Patel said, adding those other countries – which he declined to name – have voiced interest in the system.
Asked if the Arrow-3 procured by Germany is intended to protect its east – an allusion to Russia – Patel said: “They are buying a full architecture that can protect each part of Germany.”
Boaz Levy, CEO of main contractor Israel Aerospace Industries added: “The system is a mobile system and you can shift it according to threats.”
The Ukraine war has laid bare a shortage of ground-based air defence systems such as Raytheon’s (RTX.N) Patriot units or the more recently developed IRIS-T in many Western nations. While Patriot and IRIS-T cover the medium layer of air defence, Arrow-3 – in whose production Boeing Co (BA.N) is also involved – offers protection for the higher layer.
Israel’s Army Radio said the signing ceremony with Germany on the Arrow-3 sale was expected to take place in November.
(With inputs from agencies)
