Israel signs largest defense deal with Germany worth $3.5 billion

(Patria) - The Israeli Ministry of Defense announced that it has secured its largest defense contract for the sale of a sophisticated missile defense system to Germany for $3.5 billion after the United States approved the deal, AP reported.

Germany will purchase the advanced Arrow 3 defense system, designed to intercept long-range ballistic missiles. Israel sought approval for the deal from the US State Department because the system was jointly developed by the two countries. Israeli defense officials said the system will expand Germany's defensive capabilities while strengthening defense relations between Israel and the United States.

Israeli Prime Minister Benjamin Netanyahu called the deal "historic".

"Seventy-five years ago, the Jewish people were crushed into dust on the soil of Nazi Germany," Netanyahu said. "Seventy-five years later, the Jewish state is giving Germany – a different Germany – the tools for defense."

The sale requires further steps by both Israel and Germany, including approval from both parliaments, said Moshe Patel, director of the Israeli Missile Defense Organization. Patel told reporters that components of the missile system will be fully delivered to Germany by 2025, and the system will reach full capability by 2030.

Germany launched the European Sky Shield initiative last year with 17 other countries, a joint European air defense system following Russia's invasion of Ukraine.

German Defense Minister Boris Pistorius welcomed the US approval, which allows the deal to move forward.

"This procurement plan is essential for us to be able to protect Germany from ballistic missile attacks in the future," he said in a statement released by his ministry on the social platform X.

He added that "the project also represents a signal of our special German-Israeli relations."