Jerusalem: Israel's Defence Ministry on Thursday announced its largest-ever military deal worth $3.5 billion with Germany, closing negotiations that have been ongoing since April.
The deal, to sell its most advanced anti-ballistic missile system Arrow-3, was only concluded after receiving US approval as the missile defence system was jointly developed by Israel and the US.
Senior officials from both sides will soon sign a Letter of Commitment, with a preliminary payment of $600 million, and the full contract will be signed by the end of 2023, according to the Ministry’s statement.
"This is a significant decision, which will contribute to the buildup of Israeli forces and economy," Defence Minister Yoav Gallant said.
"With its exceptional long-range interception capabilities, operating at high altitudes above the atmosphere, it stands as the top interceptor of its kind," the Israeli ministry said, adding that "the system employs a hit-to-kill approach for intercepting incoming threats".
The Arrow-3 missile system is part of the country's multi-layer defence doctrine, which includes Iron Dome, a system aimed at intercepting short-range rockets, and David's Sling, which can intercept medium-range missiles.
The Arrow 3 is designed to intercept long-range ballistic missiles outside the atmosphere and is reportedly powerful enough to protect Germany as well as its neighbours.
Former director of Israel’s missile defence program Uzi Rubin said that Arrow 3 is the best defence available against the threat of ballistic missiles but is not able to offer protection against cruise missiles or others flying at lower altitudes.
With inputs from agencies