Germany’s government confirmed approval of approximately 800 million euros in arms export licenses to Israel during the first five months of 2026, representing a substantial increase from the previous 20-month period. The Federal Foreign Office disclosed that nearly all approvals were processed in April and May in response to a parliamentary inquiry.
More than 60 percent of the licensed value is designated for a single major maritime project, which analysts identify as likely being a submarine manufactured by German firm TKMS. The INS Drakon, a Dolphin II-class submarine capable of carrying nuclear weapons, underwent initial sea trials at a Kiel shipyard and was recently delivered to the Israeli Navy. Reports suggest the vessel may be equipped with a vertical launching system, potentially making Israel only the second nation after South Korea to operate such technology on a conventionally powered submarine. The submarine’s estimated value reaches 480 million euros, with Germany financing approximately 30 percent of construction costs.
German government agencies responsible for arms export licensing declined to provide commentary on the matter. Researchers noted the lack of transparency surrounding such exports, with some officials expressing concerns about potential war crimes but insufficient political will to implement restrictive policies. The government had briefly suspended new military equipment licenses for use in Gaza in early August before lifting restrictions in November to return to case-by-case review procedures.
The surge in Israeli arms approvals occurs within a broader expansion of German military exports. First-half 2026 licensing totaled 13.87 billion euros, more than quadruple the same period in 2025, with Ukraine remaining the primary recipient. Analysts attribute increased defense industry activity partly to economic pressures on Germany’s broader export economy and growing European military demand following regional security concerns. TKMS simultaneously pursued major contracts elsewhere, including selection as Canada’s preferred bidder for submarine construction valued at 12-18 billion euros.
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