Israel Will Purchase 3 Submarines From German Even After Price Doubles

Israel is moving forward with the purchase of three submarines from Germany, even after the ThyssenKrupp raised the price to nearly double. The Knesset’s ministerial committee for defense procurement authorized paying the higher price without being required to notify the public or the Knesset plenum. The official signing of the order for the submarines, which will now cost $2.73 billion, is scheduled for Wednesday. The German government had agreed to subsidize the cost of the submarines, but will not increase the subsidy along with the increase in price, the Israeli business daily Globes reported. The three submarines, which will replace three older subs in the Israeli Navy’s fleet, will be delivered in 2027. The deal will be signed even as Defense Minister Benny Gantz and Foreign Affairs Minister Yair Lapid plan to as soon as next week ask the government to set up a committee to investigate the submarine deal with Germany over allegations of corruption. The purchase of two other submarines that have already been delivered to Israel is at the center of one of the three corruption cases for which former Prime Minister Binyamin Netanyahu currently is on trial.