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USA Approves: Israel launches largest-ever defense deal

The Israeli Ministry of Defense, German Federal Ministry of Defense, and Israel Aerospace Industries will sign the landmark $3.5 billion defense agreement, marking Israel’s largest ever defense deal.

  • Defense Minister Yoav Gallant, the Director General of the Israel Ministry of Defense, Maj. Gen. (Res.) Eyal Zamir and Director of the IMOD Directorate of Defense R&D (DDR&D), Brig. Gen. (Res.) Dr. Daniel Gold were notified today (Thursday) by the U.S. Department of State that the U.S. government has approved Israel’s request for Germany to procure the Arrow 3 missile defense system from Israel.

The Arrow 3 Missile defense system is designed to intercept exo-atmospheric ballistic missiles.

  • With its exceptional long-range interception capabilities, operating at high altitudes above the atmosphere, it stands as the top interceptor of its kind. The system employs a hit-to-kill approach for intercepting incoming threats. The Arrow 3 system is co-developed and co-produced by the Israel Missile Defense Organization (IMDO) and the United States Missile Defense Agency (MDA). The industrial team is led by Israel Aerospace Industries (IAI). Arrow 3 is the leading missile defense system of its kind for the interception of exo-atmospheric ballistic missiles.

After receiving approval from the U.S. government, senior officials from the Israeli and German Ministries of Defense will partake in a ceremony to sign a Letter of Commitment (LOC),

that marks the commencement of the agreement. The allocated commitment of $600 million will facilitate the immediate initiation of work on the project.

After signing the letter of commitment, the Israeli and German Ministries of Defense together with Israel Aerospace Industries will finalize the agreement’s details.

  • Once approvals from both parliaments are obtained, the full contract will be ready to sign by the end of 2023.

The negotiations for the procurement agreement are led by the Director of the DDR&D IMDO, Mr. Moshe Patel, together with President and CEO of IAI, Mr. Boaz Levy, and Head of the Arrow 3 to Germany Program, Col. Carsten Koepper.

  • Israel Aerospace Industries (IAI) serves as the primary contractor, responsible for the development of the weapons system, Arrow interceptors, and radar detection system. Elbit Systems developed the BMC command and control system. Additionally, Tomer – A Government-Owned Company, Rafael Advanced Defense Systems and Stark Aerospace, Inc, – A U.S. subsidiary of IAI are the main subcontractors responsible for the development and manufacturing of the Arrow 3 interceptor.

Defense Minister Yoav Gallant:

  • “The U.S. government’s approval of the delivery of the ‘Arrow 3’ missile defense system [to Germany] is an expression of confidence in the excellent capabilities of Israel’s defense industries. This is a significant decision, which will contribute to Israel’s force buildup and economy. It is also particularly meaningful to every Jewish person, that Germany is acquiring Israeli defense capabilities.
  • “We are proud of this defense agreement – the largest in Israel’s history. This is an opportunity to express gratitude and appreciation to our industries – the engineers at ‘Israel Aerospace Industries’ who have broken new records as a result of their creativity and talent. ‘Arrow – 3’ is a groundbreaking system, the most advanced of its kind in the world, as well as a force multiplier in Israel’s air defense – soon in Europe as well.”
  • “Our cooperation with the U.S. government is essential to the system’s development process and to the achievement of this significant agreement. This reflects once again the powerful defense ties between the U.S. and Israel. I would like to express my appreciation to my friend, Secretary of Defense Lloyd Austin, for the United States’ central role in this process.”

Director General of the Israel Ministry of Defense, Brig. Gen. (res.) Eyal Zamir:

  • “This historic agreement holds far-reaching implications for decades to come. It strengthens the defense relations between Israel and Germany in various areas, as discussed in recent meetings with the State Secretary of the German Federal Ministry of Defense, Mr. Benedikt Zimmer. Part of the proceeds will be dedicated to bolstering Israeli defense systems. This landmark deal, the largest defense export agreement in our country’s history, will propel Israeli defense exports to a new record, following last year’s remarkable achievement of 12.5 billion dollars. The Arrow 3 agreement reinforces our unwavering alliance with the USA, encompassing strategic, political-defense, and industrial cooperation. Notably, system components currently manufactured in the USA for Israel will also be produced for Germany, further strengthening our partnerships with the U.S. industrial base.”

Director of the Directorate of Defense R&D in the IMoD, Brig. Gen. (res.) Dr. Daniel Gold:

  • “The American approval marks a momentous milestone in the strategic relationship between Israel and the United States, particularly in the realm of missile defense. The joint programs with the U.S. on the advanced Arrow 3 defense system strengthens our national defense, and will now provide additional capability for Germany, extending the capability into new frontiers. The collaboration with the U.S. enhances Israel’s national resilience across multiple levels and simultaneously fosters new opportunities, while upholding our technological-defense superiority and qualitative edge.”

President and CEO of IAI, Mr. Boaz Levy:

  • “We at Israel Aerospace Industries are happy to have received approval from the U.S. Department of State, alongside our partners in the project, the Israeli Ministry of Defense, to develop the world’s finest air defense system, Arrow 3, for Germany. We express our gratitude to the German Parliament for placing their trust in us by selecting a system manufactured by IAI. I have no doubt that equipping Germany with this system will provide the optimal response to the security and protection needs of its citizens and its surroundings. IAI has already commenced the initial stages of the transaction in collaboration with the Israel Missile Defense Organization in the DDR&D, aligning with the objectives set by the German Parliament and in close coordination with our American partners.”

Source: Arutz Sheva