Video: Footage of the Arrow 3 launch (Photo: Ministry of Defense)
The first export deal of the Arrow 3 system is advancing towards approval. Reuters reported on Saturday that a request will be submitted to parliament in Berlin this week to approve an advance payment of 560 million euros to the Arrow's manufacturer, Israel Aerospace Industries, in order to speed up the timetable for the deal. This is in order for the German Air Force to be able to receive the batteries of the missile defense system before the end of 2025 – a very short timetable for such deals.
According to the report, the value of the deal continues to rise and will reach almost 4 billion euros ($4.3 billion), making the deal the largest in the history of the defense industries. The largest deal to date was also by IAI, the sale of Barak-8 systems to India in 2017, for $1.6 billion. This is almost the value of IAI's annual sales, which reached $5 billion last year.
The German decision to purchase the Arrow system is the result of Russia's invasion of Ukraine and Russia's extensive use of ballistic missiles against Ukrainian targets. Germany currently has a number of batteries of the American Patriot system, whose ability to intercept ballistic missiles, especially long-range missiles launched from Russia, is limited.
The advance is intended to enable IAI to prepare for the production of missiles, radars and the control system, to order raw materials and systems from the Arrow-3's sub-suppliers, primarily the Elta, Elbit and Tomer plants. If the transaction is not eventually signed, the down payment will not be refunded.
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Arrow 3 experiment last year (Photo: Ministry of Defense, Spokesperson and Information Division)
The Arrow-3 deal is supposed to be signed by the end of the year, as a deal between the two governments. Since the Arrow-3 was developed with funding from the US government and Boeing participates in its production, the deal required American approval. In the past, Washington blocked exports to South Korea and India for fear of possible damage to the US defense industries. But Germany has made it clear that it is not interested in the parallel American system, Thad, and it was difficult for the Americans to oppose a deal between two of its close allies. Boeing will also receive some of the production work for the German backlog.
In recent years, security ties between Germany and Israel have strengthened, beginning in the early 60s when Germany supplied Israel with Sikorsky S58 helicopters and Patton tanks. The Israeli Air Force and Luftwaffe maintain joint training and technical ties, with a German Air Force team currently stationed at Tel Nof Air Base for training in the operation of UAVs.
Arrow 3 experiment last year (Photo: Ministry of Defense, Spokesperson and Information Division)
In recent years, the German military has purchased more than $730 billion in Israeli weapons systems. Among other things, Germany leased Heron TT UAVs from Israel Aerospace Industries in a deal worth $150 million, and announced that it would arm them with Rafael munitions for an additional $2019 million. In 200, Germany purchased Spike missiles from Rafael for $100 million, and Rafael is also supplying the German Air Force with an advanced electronic warfare system worth $30 million. The system will replace an older one sold to the Germans more than 45 years ago by ELTA, which is owned by Israel Aerospace Industries. Germany also bought the Trophy system for protecting its Leopard tanks from Rafael for $4 million, in a deal that is expected to grow in the future.
On the other hand, Germany is a major supplier of vessels to the navy. The Ministry of Defense purchased from Germany the 6 assault ships 6 and 5 Dolphin submarines, 3 of which have already been supplied. Last year, Israel ordered three more Super Dolphin submarines from Germany in a huge deal worth $3 billion. The acquisition of submarines and assault ships 6 is at the center of the "submarine affair".
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