German lawmakers on Wednesday approved an advance payment for the purchase of the sophisticated Arrow 3 air defense system from Israel for nearly four billion euros, AFP reported.
The budget committee in the lower house of parliament gave the green light for an initial payment of 560 million euros, a committee source told the news agency.
The long-range Arrow 3 system, designed to shoot down missiles above the Earth’s atmosphere, is powerful enough to offer protective cover for neighboring European Union states.
The committee also approved around 950 million euros for the purchase of six German-made Iris-T SLM air defense systems, the source said.
The Arrow 3 system is expected to cost up to 3.99 billion euros in total, according to finance ministry documents seen by AFP.
In April, Israel and Germany”s Defense Ministries and Israel Aerospace Industries launched discussions regarding the drafting of an agreement for the procurement of the Arrow-3 system.
The Israeli Defense Ministry noted at the time that the system is jointly developed and produced with the United States and “as such, the defense export process is contingent upon the approval of the U.S. government.”
According to IAI, the Arrow 3 system is able to intercept ballistic missiles fired from a distance of up to 2,400 kilometers.
The system was first deployed in an Israeli air force base in 2017 and has been used to protect Israel against attacks from Iran and Syria.
If the deal goes ahead as planned, a contract will be signed by the end of 2023 and Berlin expects the Arrow 3 system to be delivered in the final quarter of 2025, according to AFP.
The 560 million euros are intended to set up manufacturing and production in Israel.

Chancellor Olaf Scholz told a government press conference earlier on Wednesday the investment was “a big project that doesn’t just relate to Germany itself”.
Asked if he thought there was any risk in making the initial payment, Scholz said things were “progressing bit by bit and we believe that everything will also be approved”.