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IceSecurity

Israel Scraps $1 Billion Apache Helicopter Deal Amid Budget Dispute

Translated & summarized from Ice by baba

BusinessCharged tone

Hebrew · 7 newsrooms covering

Israel has canceled a $1 billion deal to acquire 12 Apache attack helicopters from the U.S. due to a budget dispute between the Defense and Finance Ministries. Senior defense officials expressed anger, calling the cancellation a blow to national security and accusing the Finance Ministry of sabotage. The deal was considered critical following the October 7th attacks, and Israel has now lost its production slot for the advanced aircraft.

The story in 5 lines · by baba

  • Israel canceled a $1 billion deal for 12 U.S.-made Apache attack helicopters.
  • The cancellation stems from a budget dispute between the Defense and Finance Ministries.
  • Defense officials claim the Finance Ministry sabotaged the deal due to its proximity to elections.
  • The helicopters were deemed critical for the IDF after the October 7th attacks.
  • Israel has lost its allocated production slot for the advanced aircraft.
Israel Scraps $1 Billion Apache Helicopter Deal Amid Budget Dispute
Editorial illustration generated by baba News, not a photograph of the event.

Israel has canceled a major deal to purchase 12 Apache attack helicopters from the United States, a move estimated to be worth $1 billion. The decision, which follows months of budgetary disagreements between the Ministry of Defense and the Ministry of Finance, resulted in Israel losing its allocated production slot. The deal was reportedly scuttled on Wednesday despite last-minute efforts to salvage it, according to Globes.

This acquisition was considered critical for the Israel Defense Forces (IDF) following the lessons learned from the October 7th attacks, with senior defense officials expressing anger and concern over the cancellation. The helicopters were intended to bolster the Air Force's capabilities and prevent incursions similar to the Hamas attack. Israel currently operates older models of the Apache, while other regional nations possess more advanced versions.

Sources within the defense establishment have accused the Ministry of Finance of deliberately sabotaging the deal. They claim the Finance Ministry consulted legal advisors, arguing that signing the agreement so close to an election would be improper. "Smotrich acted with all his might to harm security, and he succeeded in getting the Attorney General's opposition to the deal's progress due to its proximity to the elections," one senior defense official stated, lamenting that Israel would now be unable to acquire these vital helicopters.

The Ministry of Defense had been lobbying the U.S. administration for months to secure the deal. The Finance Ministry had requested that payments for the helicopters be deferred until 2030 due to Israel's existing financial commitments, requiring the Defense Ministry to identify budget sources only from that year onward.

This helicopter deal was part of a broader ten-year rearmament plan, approved in principle by the Ministerial Committee for Security Affairs in April. The plan also included the acquisition of two squadrons of F-15 and F-10 fighter jets, half a squadron of Apache helicopters, and options for additional refueling aircraft and "Puma" helicopters.

IceOther · Tel Aviv

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