Israel said it will proceed with the biggest military export agreement in the country’s history after the US backed Germany’s $3.5 billion purchase of the Arrow 3 air-defense system.
(Bloomberg) — Israel said it will proceed with the biggest military export agreement in the country’s history after the US backed Germany’s $3.5 billion purchase of the Arrow 3 air-defense system.
Following approval from Washington, senior officials from the German and Israeli governments will take part in a ceremony to sign a letter of commitment, Israel’s defense ministry said Thursday. An initial allocation of $600 million will enable work on the project to begin immediately and the full contract will be ready to sign by the end of this year, it added.
“This is a significant decision which will contribute to Israel’s force buildup and economy,” Israeli Defense Minister Yoav Gallant said in an emailed statement.
“It is also particularly meaningful to every Jewish person that Germany is acquiring Israeli defense capabilities,” he added.
The Arrow 3 interceptor was jointly developed by Israel Aerospace Industries and Boeing Co. It detects, tracks, intercepts and destroys tactical ballistic missiles over a wide area and is designed to protect strategic assets and population centers.
Germany’s lower house of parliament approved the budget for the Arrow 3 in June. The money will come from a special €100 billion ($109 billion) fund the government set up after Russia’s full-scale invasion of Ukraine to help modernize the military after years of neglect.
Last year, at least 15 countries — mainly NATO members including the UK and the Netherlands — signed a letter of intent to join a long-term German project to create a European anti-missile shield.
The system will have several layers to intercept various kinds of missiles from different heights, possibly linking up the Arrow 3 with US-made Patriots and German Iris-Ts, and would be fully deployable throughout the North Atlantic Treaty Organization.
Eyal Zamir, the director general of the Israeli defense ministry, said the “landmark deal” will lift Israeli military exports to a record after last year’s sales worth $12.5 billion.
System components manufactured in the US for Israel will also be produced for Germany, Zamir said.
–With assistance from Omar Tamo.
(Updates with additional background, comments)
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