Germany, Israel sign formal commitment for Berlin's Arrow-3 missile buy

An "Arrow 3" ballistic missile interceptor is seen during its test launch near Ashdod

(Reuters) - Germany on Thursday signed a letter of commitment with Israel to buy its Arrow-3 missile defence system for nearly 4 billion euros ($4.2 billion), the defence ministers of the two countries said in a press conference.

The deal represents Israel's biggest ever defence sale and follows a European arms build-up in response to Russia's war in Ukraine.

The purchase will be financed from a 100 billion-euro special military fund that the German government agreed on last year in reaction to Russia's attack on Ukraine.

The Arrow-3 system, which is designed to intercept ballistic missiles outside the earth's atmosphere, is expected to be delivered from the fourth quarter of 2025.

(1 euro = $1.0541)

($1 = 0.9507 euros)

(Reporting by Amir Orusov; Editing by Sharon Singleton)