Germany signs nearly €4 billion deal for Israel’s Arrow 3 missile defense system

#Germanysigns #4billion #dealIsrael BERLIN, Germany — Israeli and German officials signed an agreement Thursday to advance nearly 4 billion euro purchase of the Arrow 3 long-range air defense system developed by Israel and United States; this was a major step towards Israel's largest defense contract to date. As Berlin seeks to strengthen its missile shield array amid fears of a new cold war with Russia. Defense Minister Yoav Gallant called the signing "a great achievement for the defense industry" and "a historic day for our two nations that will help future-proof German air defense" after Defense Ministry Director General Eyal Zamir signed a letter. The commitment was made together with Annette Lehnigk-Emdan, head of procurement at the German Ministry of Defence. The deal signed on Thursday will free up €560 million in funding approved by the German parliament in June trigger Israel's start of manufacturing and production of Arrow 3 batteries designed to destroy ballistic missiles other long-range projectiles. The batteries, largely produced by Israel Aerospace Industries, are expected to start arriving on German soil by the end of 2025. The entire deal will be close to €4 billion and will be Israel's largest defense contract ever, according to IAI president and CEO Boaz Levy. The Israeli Ministry of Defense showed a lower figure of $3.5 billion . Gallant and his German counterpart Boris Pistorius, who was at Berlin Ministry Defense to inspect ministries that signed letter of commitment to start production Arrow parts, signed a separate statement strengthening defense cooperation between two countries. Despite ostentatious fanfare and high-level representation, deal will only be officially concluded with signing of a separate contract after Germany's parliamentary budget committee approves purchase, expected in October. The Arrow 3 system is designed to destroy projectiles from space, including ballistic missiles and warheads, as well as satellites, before they re-enter the Earth's atmosphere. The United States approved the sale August and it will represent part of the German-led European Sky Shield Initiative to strengthen continental Europe's air defenses in response to Russian air strikes Ukraine. Moshe Patel, head of the Israel Missile Defense Organization, said the system would "defend all of Germany and then a bit beyond." A spokesman for German Defense Ministry and Israeli defense officials declined to confirm the number of batteries included in deal. Raising possibility of future additions to agreement, German government has allocated €5 billion for Arrow system from €100 billion special fund Germany created to increase defense spending following Russia's coup attempt in February. 2022 Invasion of Ukraine. Eighteen countries have signed the European Sky Shield Initiative since it was conceived in August 2023. The plan encourages allies to jointly purchase deterrent systems, focusing on their interoperability with NATO air and missile defense systems. "We want to include