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With US Approval, Israel Closes $3.5 Billion Defense Deal With Germany

In its largest-ever defense deal, Israel will sell its Arrow 3 advanced defense system to Germany for $3.5 billion. Arrow 3 is a long-range ballistic missile interception system that was developed in cooperation with the US, which approved the deal.

“The American approval marks a momentous milestone in the strategic relationship between Israel and the United States,” Israeli defense official Daniel Gold said in a statement. “The joint program with the US on the advanced Arrow 3 defense system strengthens our national defense.”

Israel Missile Defense Organization Director Moshe Patel said that both countries must still approve the deal in their respective parliaments before the system is delivered to Germany in 2025. The system is tracked to achieve full capacity by 2030.

The Israel-Germany deal, coupled with Israel’s prior sale of a different defense system to Finland, another NATO member, could draw Russian scrutiny. Israel is under pressure to manage its delicate ties to Russia, with which it has maintained a connection throughout the Ukraine conflict. Instead of sending weapons to Ukraine, it has opted for humanitarian aid.

“Relations are a bit strained. But still, we are not supplying Ukraine with any weapons. We do that because we want to keep relations with Russia at an acceptable level,” said Uzi Rubin, a security expert at the Jerusalem Institute for Strategy and Security and former director of Israel’s missile defense program.