US greenlights $3.5 billion Arrow 3 sale to Germany, Israel’s largest arms sale

August 18, 2023 by Pesach Benson
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The US government has approved Israel selling its Arrow 3 missile defence system to Germany, Israel’s Defence Ministry announced yesterday.

Launching of an Arrow 3 interceptor.      Photo by Israel’s Ministry of Defence

Washington’s assent was the final hurdle for the $3.5 billion sale, Israel’s largest arms deal.

The Arrow 3 missile defence system is designed to intercept ballistic missiles in outer space. With its long-range interception capabilities, operating at high altitudes above the atmosphere, the Arrow 3 is regarded as the top interceptor of its kind. The system employs a hit-to-kill approach for intercepting incoming threats.

The deal is also the first sale of the Arrow system to another country.

Washington’s assent paves the way for Israel and Germany to sign a Letter of Commitment to facilitate work on the project, followed by the signing of a complete contract expected to take place by the end of 2023.

Operational since 2017, the Arrow 3 is part of the country’s multi-layered defence array, which includes the Arrow-2, David’s Sling, and Iron Dome defence systems.

The Arrow 3 system is co-developed and co-produced by the Directorate of Defense Research & Development’s Israel Missile Defense Organization (IMDO) and the United States Missile Defence Agency (MDA). Under the terms of the partnership, transfer of the Arrow 3 to any third country requires mutual consent of Israel and the U.S.

Israel Aerospace Industries (IAI) serves as the primary contractor.

The Russian invasion of Ukraine prompted European countries to boost defence spending. That, as well as interest in Israeli military technology from Abraham accords partners, have created a spike in Israeli defence exports.

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