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$4.3 Billion Arrow Missile Sale to Germany Gets U.S. Approval

The $4.3 billion deal to sell Israel’s Arrow-3 missile, part of Israel’s vaunted Iron Dome missile defense system, to Germany, the largest such defense deal in Israel’s history, has been approved by the U.S. government. American approval is required for any deal involving the sale of Iron Dome related technologies because the U.S. is partnered with Israel in its development.

Germany is now the first foreign nation to acquire this Israeli technology and, expects to take possession of the Arrow-3 by the end of 2025.

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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 Arrow 3 interceptor, which was developed in cooperation between Israel Aerospace Industries and the U.S., is part of the Arrow Weapon System (AWS) which is the world’s first operational, national, stand-alone ATBM (Anti Tactical Ballistic Missiles) defense system. Based on the uniquely effective Arrow 2 and Arrow 3 interceptors, the Arrow modular air defense system detects, tracks, intercepts and destroys incoming TBMs carrying a range of warheads and over a large footprint, thereby protecting strategic assets and population centers.

The innovative Arrow 3 interceptor is designed to intercept and destroy the newest, longer-range threats, especially those carrying weapons of mass destruction.

Arrow 3 integrates into the Arrow Weapon System (AWS) complementing the current and future blocks of the Arrow 2 interceptor, thus enabling upper-tier multiple engagement opportunities.

Israel’s Minister of Defense Yoav Gallant said, “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.”

Gallant went on to say that he was proud of the deal and that 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.”

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