The United States on Thursday gave the green light for Israel to sell the Arrow 3 missile defense system to Germany, the Israeli Defense Ministry said.

The $3.5 billion (€3.2 billion) sale will be Israel's biggest-ever defense deal, the ministry said.

The Arrow 3 system, developed jointly by Israeli and US missile defense agencies, is designed to intercept ballistic missiles above the Earth's atmosphere.

Germany has said that it expects to take delivery of Arrow 3 by the fourth quarter of 2025.

Berlin is seeking to boost its air defense capabilities in light of Russia's full-scale invasion of Ukraine, which has ignited security fears throughout Europe.

Germany, Israel hail cooperation

The chair of the German parliament's Defense Committee, Marie-Agnes Strack-Zimmermann, said she is "very relieved" about the US decision to allow the sale of the missile defense system.

"It will be operational by the end of 2025 and, on our initiative, will become part of a European air defense system," she told the German dpa news agency.

Israel's ambassador in Berlin, Ron Prosor, has also hailed the announcement, speaking of "a historic day."

"For the first time, an Israeli system will protect the skies of Germany and Europe as a whole. A deal of this magnitude would not have been possible without an intensive diplomatic effort," he wrote on X, formerly known as Twitter.

"The close cooperation with our German colleagues on this exemplifies
the depth of the strategic relationship between Israel and Germany," he said.

What is the Arrow 3 system?

The missile defense system consists of a command post, radar devices, launching equipment and guided missiles.

The system is the highest level of Israel's multilayer missile defense and can destroy attacking weapons up to an altitude of more than 100 kilometers (62 miles).

Its missiles are fitted with detachable warheads that collide with the target.

The high level of interception that it allows permits the safe destruction even of nuclear warheads and other non-conventional warheads.

What happens now?

According to a statement from the Israeli Defense Ministry, the purchase agreement must now be signed by the Defense Ministries of the two countries and Israel Aerospace Industries, with the contract to be ready by the end of 2023.

That contract will be preceded by a Letter of Commitment signed by Israel and Germany, with a $600 million initial payment, the statement said.

One Israeli defense official quoted by Reuters news agency said the system was expected to be fully operational in Germany by 2030. 

The German government has spearheaded the so-called European Sky Shield initiative, urging its allies to jointly purchase air defense systems in the wake of Russia's aggression against Ukraine. Almost 20 European countries have so far signed up.

tj/sms (Reuters, dpa)