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Germany signs €350 million deal for Israeli arms systems despite embargo talk

Germany signs €350 million deal for Israeli arms systems despite embargo talk

Rafael to supply 90 advanced Litening 5 targeting pods for German Air Force Typhoons, even as Berlin restricts exports to Israel.

Yuval Azulay | 16:16, 26.08.25

Against the backdrop of German Chancellor Friedrich Merz’s statement on an arms embargo to be imposed on Israel due to its operations in Gaza, Rafael reported on Tuesday that it will supply the German Air Force with advanced systems for its aircraft, in a deal worth over €350 million.

The contract covers about 90 Litening 5 targeting and navigation pods, designed for installation on the German Air Force’s Eurofighter Typhoon fighter jets.

Typhoon aircraft. Typhoon aircraft. Typhoon aircraft.

According to Rafael, the Litening 5 is the most advanced generation of the system, enabling the guidance of precision air-to-ground weapons at targets up to 100 kilometers from the aircraft. To date, around 2,000 such systems have been delivered to 28 air forces worldwide. The pods are modular and compatible with nearly 30 different types of fighter aircraft.

The German parliament approved the acquisition about two months ago. The German Air Force had previously purchased earlier versions of the system, including the Litening 3.

This agreement follows a series of recent Israeli defense deals with Germany. Last month, Elbit Systems announced a contract worth about $260 million to supply “DIRCM” laser-based defense systems for dozens of A400M transport aircraft produced by Airbus for the German Air Force. These systems are designed to disrupt the trajectory of infrared-guided missiles.

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Earlier this year, Elbit also secured a nearly $60 million deal to supply PULS rocket artillery launchers to the German military. But the largest agreement to date is the Arrow 3 missile defense deal, signed between Israel Aerospace Industries (IAI), the Israeli Ministry of Defense, and the German government. That contract, valued at about NIS 14 billion, is the biggest defense export in Israel’s history. Germany is already considering a follow-up deal to acquire Arrow 4 interceptors, which are still under development.

The arms embargo announced by Chancellor Merz earlier this month is intended to restrict German weapons exports to Israel, particularly systems that could be used in IDF operations in Gaza. However, the embargo does not extend to German purchases of Israeli weapons.

Still, enforcement of the embargo could complicate Israel’s access to German-made components, such as engines for the Merkava tank, the Navy’s submarines, and its advanced Saar 6 patrol ships.

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