German Arms Export Licences for Israel Surge to €800M Amid Major Submarine Handover

Between January and May of 2026, Berlin approved nearly 800 million euros ($913 million) in military export licences for Israel. That five-month sum completely eclipses the total value of all authorizations granted over the previous 20 months. They haven’t just increased the pace of approvals—they’ve skyrocketed it.

Authorities greenlit the vast majority of these exports during April and May. Over 60 percent of the funds cover one specific maritime asset.

It’s massive.

Defense analysts confirm the heavy focus on sub project procurement centers entirely on the INS Drakon.

A reply to a parliamentary inquiry forced the Federal Foreign Office to release these figures publicly. Lawmakers from the Alternative for Germany (AfD) party originally submitted the question to find out exactly what the government was paying for. In mid-July, ThyssenKrupp Marine Systems (TKMS) officially handed the completed vessel over to the Israeli Navy.

At a Kiel shipyard on the Baltic Sea, engineers conducted initial sea trials for the 480-million-euro ($548 million) submarine in 2025. Workers actively concealed the tower during those tests. Fibreglass plates and tarpaulins covered the structure—a deliberate effort to hide the weapons configuration.

The INS Drakon features a vertical launching system designed to fire ballistic or nuclear-tipped cruise missiles. And Israel is now only the second navy globally to deploy such a system on a conventionally powered submarine with air-independent propulsion. South Korea secured that milestone first.

The recent transfers guarantee a sea-based deterrent. Historically, Germany supplies roughly 47 percent of conventional arms imports to Israel. Chancellor Frederick Merz temporarily halted the pipeline with an August 2025 embargo. But a sudden November policy reversal restarted the case-by-case review process.

Human rights organizations like the ECCHR continue to challenge the government in Berlin administrative courts. To be fair, TKMS expanded its defense footprint further in May 2026. Executives from the shipbuilder signed a collaboration memorandum with Elbit Systems.

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