Germany moves closer to acquiring Arrow 3 missile defence system

By Defence Industry Europe

Federal Republic of Germany is set to order Israeli missile defence system with the Arrow 3 exoatmospheric interceptors, for a total of EUR 4 billion. If the contract is finalized, it will be the largest in the history of Israel's defence industry.

The German federal government plans to request an advance payment of EUR 560 million from the parliament, potentially as early as June 15th, to fund the purchase.

Reuters reports on the planned acquisition, stating that the final agreement is expected to be reached by the end of 2023, with deliveries scheduled for 2025.

The Arrow 3 interceptors are part of the Arrow Weapon System (AWS), which represents Israel’s first operational defence system against tactical ballistic missiles. It has the capability to detect, track, intercept, and destroy missiles with multiple warheads, boasting a range of 2,400 km and a maximum altitude of 100 km.

In Israel, it is considered the highest level of air defence system, developed by Israel Aerospace Industries (IAI).

Negotiations between Israel and Germany regarding the purchase of the Arrow 3 complex have been ongoing for at least a year. Initially estimated at EUR 2 billion, the potential contract gained momentum after discussions between Prime Minister Benjamin Netanyahu and Chancellor Olaf Scholz during Netanyahu’s visit to Berlin in March 2023.



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