Israel on verge of largest-ever defense deal, as Germany advances Arrow 3 purchase plans

The German government will reportedly ask the parliament this week for a 560 million euro advance to buy the exo-atmospheric missile interception system, for a total of nearly 4 billion euro

The Arrow 3 system. Photo: IAI

The German government will ask its lawmakers to release advance payment of up to 560 million euros this week, in order to buy Israel’s Arrow 3 missile defense system. This, according to a Reuters report from Friday, which relies on exclusively seen documents.

In total, Germany is expected to pay almost 4 billion euro (or $4.3 billion) for this system, an exo-atmospheric interceptor for long-range threats developed by Israel Aerospace Industries. According to Reuters, Germany hopes to strike a deal by the end of 2025, and receive the systems by the end of 2025. Originally, the deal was supposed to close for about 3 billion euros.

The report doesn’t mention when exactly this is expected to take place. However, according to the Bundestag’s official weekly schedule, a “National Security Session” is scheduled for Thursday, June 15th, at 09:00 am.

The Arrow 3 interceptor is part of the Arrow Weapon System (AWS) – the first operational, national, stand-alone Anti Tactical Ballistic Missiles (ATBM) defense system which detects, tracks, intercepts and destroys incoming threats carrying a range of warheads. It has a range of 2,400 km, and can reach a 100-km altitude.

This interceptor is designed to intercept and destroy the newest, longer-range threats, especially those carrying weapons of mass destruction. It is Israel’s upper-tier defense system in its multi-layer defense array.

The other components include Iron Dome, which intercepts short-range, surface-to-surface rockets as the bottom layer; David’s Sling, which intercepts short-to-medium and medium-to-long-  range, surface-to-surface missiles as the middle layer; and the Arrow 2, which intercepts medium-to-long- range missiles as the upper layer, together with the Arrow 3.

Negotiations between Israel and Germany concerning Arrow 3 acquisition surfaced last year, after Russia launched the war on Ukraine. In September 2012 Israel’s then Prime Minister, Yair Lapid, met with German Chancellor Olaf Scholtz and confirmed negotiations. “The future possible deal as to do with our total commitment to the safety of Germany,” said Lapid.

In March of this year, Prime Minister Benjamin Netanyahu held a meeting with Scholtz in Berlin, during which they discussed the upcoming potential deal. The following month, Israeli officials confirmed that negotiations have accelerated.

The deal requires US approval, as it was developed using government funding. This approval had reportedly been  granted by President Biden in March of this year. No official announcement, though, has been made as of yet.

If signed, this will be the biggest defense deal in Israel’s history. If the deal eventually falls through, though, Germany will lose part or all of its down payment, which will go to Israel for the work done thus far, according to Reuters.

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