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In a landmark defense deal, Germany is set to procure the Israeli Arrow 3 hypersonic missile system aimed at strengthening European air defenses.

This significant move, labeled as “historic” by German Defence Minister Boris Pistorius, will see an investment of around $3.5 billion, marking the most significant agreement for Israel’s defense sector to date.

Germany’s initiative follows heightened concerns regarding European air security in light of Russia’s invasion of Ukraine last year. Pistorius stressed the importance of anti-air defenses, stating, “We can see with the daily Russian attacks on Ukraine how important antiair defense is.”

The Arrow 3 system, designed to counter missiles above the atmosphere, not only boosts Germany’s defenses but also protects neighboring European Union states. Developed jointly by the US and Israel, the system, which was first operational in Israel in 2017, has proven effective against threats from Iran and Syria.

The acquisition, funded by the $105 billion defense budget unveiled after start of the Ukraine war, plays a pivotal role in Germany’s European Sky Shield Initiative. This initiative encourages European nations to collaboratively purchase defense systems, including the German IRIS-T, the American Patriot system, and now the Arrow 3.

Delivery of the Arrow 3 system to Germany is anticipated by the end of 2025.