Israel says Arrow-3 missile-killer sale to Germany approved by US

The United States approved a $3.5-billion sale of Israel's Arrow-3 missile defence system to Germany on Thursday, clearing the way for delivery in 2025 and full operational deployment by 2030, Israeli officials said.

The US is a partner in the Arrow project, which was developed jointly by the Israel Missile Defence Organisation and the United States Missile Defense Agency.

The Germany deal, which would be Israel's biggest-ever defence sale, follows a European arms build-up in response to Russia's war in Ukraine.

Israel and Germany will sign a Letter of Commitment, with a $600-million initial payment, to commence work on the project, a statement by Israel's defence ministry said, adding that the full contract will be ready to sign by the end of 2023.

Using a detachable warhead that collides with the target, it is designed to intercept ballistic missiles outside the Earth's atmosphere, an altitude allowing for the safe dispersal of any non-conventional warheads.

Germany has said it expects its air force to take delivery of Arrow-3 by the fourth quarter of 2025.

Moshe Patel, head of the Israeli Missile Defence Organisation, told reporters that would be the first "milestone" with another coming when the German Arrow-3 achieves "full capability, around 2030".

Additional German spending on Arrow-3 could raise the deal's value to $4 billion, Patel said, adding that other countries – which he declined to name – have voiced interest in the system.

Asked if the Arrow-3 procured by Germany is intended to protect its east – an allusion to Russia – Patel said: "They are buying a full architecture that can protect each part of Germany."

Boaz Levy, CEO of main contractor Israel Aerospace Industries, added: "The system is a mobile system and you can shift it according to threats."

The Ukraine war has laid bare a shortage of ground-based air defence systems such as Raytheon's Patriot units or the more recently developed IRIS-T in many Western nations.

While Patriot and IRIS-T cover the medium layer of air defence, Arrow-3 – in whose production Boeing Co is also involved – offers protection for the higher layer.

Israel's Army Radio said the signing ceremony with Germany on the Arrow-3 sale was expected to take place in November.

(Reuters)