Germany to spend $4.3bn to buy Arrow-3 missile defence system to intercept ballistic missiles outside the atmosphere

Germany is one step closer to acquiring Israel's Arrow-3 missile defence system. The German government has expressed its willingness to buy the system as early as March 2022.

Here's What We Know

The Arrow 3 is the "top layer" of Israel's missile defence system. The system is used to intercept short-, medium- and long-range missiles at safe altitudes (up to 100 km). The system is also capable of shooting down ballistic targets outside the atmosphere.

Germany plans to strike a deal with the Israeli government later this year. This was reported by Reuters news agency, citing a Finance Ministry document prepared for parliament.

Previously, there was information that Germany would pay about €3 billion ($3.23 billion) for the Arrow-3. According to the new information, the deal will amount to €4bn ($4.3bn). In addition, the contract involves an upfront payment of nearly €560 million ($600 million).

Deliveries of the Arrow-3 missile defense system are scheduled for the fourth quarter of 2025. In the event of a deal breakdown, the advance payment is non-refundable. It will become compensation for costs incurred by Israel.

Source: Reuters