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Who Supplies Weapons to Israel? Insights into Suppliers and Export Stops

Mark White by Mark White
May 9, 2024
in Supply Chain Management
0

ProcurementNation.com: Strategic Sourcing, Supply Chain & Spend Management Guides > Logistics & Operations > Supply Chain Management > Who Supplies Weapons to Israel? Insights into Suppliers and Export Stops

The United States is by far the biggest supplier of arms to Israel, accounting for 69% of Israel’s weapons imports between 2019-2023. The U.S. provides Israel with $3.8 billion in annual military aid, which Israel uses to finance orders of advanced weaponry like F-35 fighter jets and missile defense systems such as Iron Dome, contributing to the Israel-Hamas conflict and rocket attacks in the Gaza Strip.

Since the recent escalation of violence in Gaza, the United States has quietly made over 100 military sales to Israel, including deliveries of precision-guided munitions, bombs, and artillery shells used in Israeli airstrikes and assaults. Germany and Italy are the next biggest arms exporters to Israel, though some nations like Canada have paused new weapons transfers amid concerns over their use against Palestinian civilians.

US Arms Supplies

The United States is by far the biggest supplier of weapons to Israel, providing an estimated 68% of Israel’s foreign-sourced weapons. The US provides roughly $3.8 billion annually in military aid to Israel, an amount that has remained stable over the past decade. Since World War II, Israel has been the biggest recipient of American financial support to a foreign country, receiving a cumulative sum of $158 billion by 2023.

Key Agreements and Commitments

In 2016, the US and Israel signed a 10-year Memorandum of Understanding committing the US to providing $38 billion in military assistance up to 2028. After the October 2023 attack by Hamas, the US Senate passed a bill in February 2024 that would provide $14.1 billion in Israel-related supplemental spending.

Enabling Israel’s Arms Industry

US aid has enabled Israel to develop its own arms industry, making it one of the world’s top arms exporters. The US has a policy of maintaining Israel’s ‘qualitative military edge’ over its neighbors, providing Israel with more advanced weapons systems or the ability to customize US-supplied systems.

Controversy and Criticism

Critics argue the US is breaking laws like the Foreign Assistance Act and Leahy Act by continuing arms supplies to Israel despite allegations of human rights abuses. The Biden administration has been reluctant to stop or condition arms transfers to Israel, fearing it could push Israel closer to Republicans and alienate pro-Israel voters.

US Military Aid to Israel
Annual Military Aid$3.8 billion
Cumulative Aid since WWII$158 billion by 2023
2016-2028 Commitment$38 billion
Post-Hamas Attack Aid (2024)$14.1 billion

The United States is the biggest supplier of weapons to Israel, and accelerated weapons deliveries to Israel after the Oct. 7 Hamas-led attacks. This included:

  1. Pausing a shipment of 1,800 2,000-pound bombs and 1,700 500-pound bombs to prevent their use in the Rafah assault.
  2. Reviewing whether to hold back future transfers while providing significant military equipment like bombs, precision guidance kits, missiles, artillery shells, and ammunition.

Some of the U.S.-origin weapons have been used in incidents that resulted in civilian harm, which may violate international humanitarian law.

German Contributions

Germany is the next biggest arms exporter to Israel after the United States, accounting for around 30% of Israel’s imports between 2019 and 2023. In 2023, 30% of Israel’s military equipment purchases came from Germany, totaling $326.5 million (€257 million) – a tenfold increase from 2022.

International Court of Justice Ruling

The International Court of Justice (ICJ) recently ruled against issuing emergency measures over German arms sales to Israel, as requested by Nicaragua. Nicaragua had argued that there was a serious risk of genocide in Gaza amid Israel’s assault on the Palestinian territory, and demanded that Germany resume funding to the UN aid agency for Palestinian refugees, UNRWA.

However, the ICJ did not grant Germany’s request to throw out the case altogether. The court will still hear arguments from both sides on the merits of Nicaragua’s case, which will likely take months. The ICJ stated that it remains “deeply concerned about the catastrophic living conditions of the Palestinians in the Gaza Strip” and reminded all states of their international obligations relating to the transfer of arms to parties in an armed conflict.

Germany denied the accusations, arguing that Nicaragua’s case was rushed and based on flimsy evidence. Germany stated that it has barely exported any weapons to Israel since the offensive on Gaza started. The court noted that Germany had granted only four export licenses to Israel for weapons of war since the start of the war, two for training ammunition, one for test purposes, and one consignment of “3,000 portable anti-tank weapons”.

The expert Moataz El Fegiery said the ICJ decision did not constitute a victory for Germany, as the court reminded Germany of its obligations under international law not to provide weapons that could be used in human rights violations.

German Arms Exports to Israel
Percentage of Israeli Imports30% (2019-2023)
Value in 2023$326.5 million (€257 million)
Increase from 2022Tenfold
ICJ RulingCase against Germany to continue
  1. Nicaragua accused Germany of being complicit in alleged Israeli war crimes and genocide against Palestinians in Gaza by supplying arms.
  2. Germany is a staunch ally of Israel and the second-largest supplier of arms to the country after the US.
  3. Germany provided around 30% of Israel’s foreign-sourced weapons.

Other Major Suppliers

United Kingdom and Italy

The United Kingdom and Italy are also believed to be major suppliers of weapons to Israel, though the exact figures are not publicly disclosed. Both countries have long-standing military and defense ties with Israel.

Australia’s Stance

While Australia was initially considered a supplier of arms to Israel, the Australian government has stated that it has not provided any weapons to Israel since the start of the Gaza conflict.

Legal Challenges and Protests

Several governments that sell weapons to Israel are facing legal challenges and protests over these exports. Even countries with smaller portions of aid or weapons sales to Israel are facing heated domestic debates and legal challenges, with some nations halting exports through parliamentary votes or court orders.

Countries Halting Exports

In response to the escalating violence in Gaza, several countries have announced that they would stop shipping weapons to Israel, at least temporarily. These include:

  1. Canada
  2. The Netherlands
  3. Japan
  4. Spain
  5. Belgium

Denmark’s Court Case

In Denmark, a court case is pending which could result in the government having to suspend the export of F-35 fighter jet parts to the United States. This is because the U.S. sells the finished jets to Israel, and the Danish court will determine if such exports violate Denmark’s arms export laws in light of the ongoing conflict.

CountryStatus
United KingdomMajor supplier to Israel
ItalyMajor supplier to Israel
AustraliaHas not supplied weapons since Gaza conflict began
Canada, Netherlands, Japan, Spain, BelgiumHalted weapons exports to Israel
DenmarkCourt case pending on exporting F-35 parts to U.S. (which sells to Israel)

Israeli Defense Industry

The Israeli defense sector has experienced significant growth in recent years, with exports reaching $12.5 billion in 2022, a 20% increase over the previous year. A quarter of these arms exports go to countries that have normalized relations with Israel, providing both commercial and political dividends.

The Israeli state remains the largest client for the domestic defense industry, helping to maintain armed forces capable of operating in the unstable Middle East region. The transfer of military technologies to the civilian sector is organized by the Ministry of Science and Technology, generating an estimated $5-10 billion per year.

However, the industry faces challenges such as supply chain disruptions, rising costs of raw materials, and demographic shifts with the growing ultra-Orthodox population less inclined to serve in the military.

Global Presence

Israel is one of the world’s major exporters of military equipment, accounting for 10% of the global total in 2007. Three Israeli companies were listed in the top 100 arms-producing and military service companies globally in 2022:

  1. Elbit Systems
  2. Israel Aerospace Industries
  3. RAFAEL

As of 2023, Israel has a 2.3% share of the global exports of major arms. Israel’s arms sales included transfers of surplus and rehabilitated equipment, as well as newly developed production lines. Israel is considered the leading exporter of unmanned aerial vehicles (UAVs) in the world, accounting for 41% of global drone exports from 2001-2011.

Domestic Spending and U.S. Support

Israel’s defense spending averages $21-$22 billion per year, with an additional $3.3 billion in annual U.S. Foreign Military Financing (FMF) and $500 million for missile defense. As of July 2023, Israel has 593 active Foreign Military Sales (FMS) cases valued at nearly $30 billion.

Key FiguresValue
Defense Spending$21-$22 billion per year
U.S. FMF$3.3 billion annually
U.S. Missile Defense Aid$500 million annually
Active FMS Cases593 (valued at $30 billion)

Israel’s defense exports hit a new record of $12.546 billion in 2022, an 11% increase from 2021. Exports to Abraham Accords countries (UAE, Bahrain, Morocco) reached approximately $3 billion. The rate of export agreements signed by the Ministry of Defense has increased 10-fold in 5 years, reaching over $4 billion in 2022.

US Stockpile in Israel

The War Reserve Stockpile Allies – Israel (WRSA-I)

The U.S. military stockpile in Israel, known as the ‘War Reserve Stockpile Allies – Israel’ (WRSA-I), is a little-understood and opaque store of weapons that the Biden administration has asked Congress to make more flexible. WRSA-I is a U.S. Department of Defense (DoD) stockpile located in Israel, and the equipment stored in it is available for use by DoD or transfer to a foreign country. There is no unclassified, publicly available itemization of what is in the stockpile.

  1. Past Usage
    • Israel has received equipment from WRSA-I in at least two past conflicts, in 2006 and 2014.
    • The stockpile has likely been used more frequently.
  2. Biden Administration’s Request
    • The Biden administration has requested emergency supplemental funding from Congress that would reduce restrictions on transfers to and from WRSA-I.
    • This includes removing the cap on the value of defense articles that can be moved to the stockpile and allowing more flexibility in transfers from the stockpile to Israel.

Oversight and Transparency

Congress should require more transparency and oversight regarding WRSA-I, including comprehensive reporting on all equipment transferred into and out of the stockpile, and should not remove the existing restrictions as requested by the Biden administration.

WRSA-I Stockpile Value
Initial Value$100 million
Pre-2014 Gaza WarNearly $1 billion (authorized up to $1.2 billion)
Post-2014 AgreementIncreased to $1.8 billion

Israel’s Own War Reserves

Israel also maintains its own war reserves, with ammunition, spare parts, and replacement equipment for at least a month of intense combat. The majority of these reserves are purchased from the US, due to the $3 billion in annual military aid Israel receives from the US.

Bypass of Arms Transfer Controls

The process for drawing from the WRSA-I stockpile can bypass normal arms transfer controls and oversight, as the equipment can be taken before the full accounting and review processes are completed.

Conclusion

The supply of weapons to Israel has been a contentious issue, with the United States being the largest contributor, followed by countries like Germany, Italy, and the United Kingdom. While some nations have halted exports due to concerns over the escalating violence in Gaza, others continue to supply arms, raising questions about compliance with international laws and human rights obligations. Israel’s domestic defense industry has also experienced significant growth, contributing to its status as a major exporter of military equipment globally.

The issue of arms transfers to Israel remains complex, with the need for transparency, oversight, and accountability. Moving forward, it is crucial for nations to carefully evaluate their arms export policies, ensuring that they align with international humanitarian law and uphold the protection of civilian lives. Ultimately, a comprehensive and sustainable solution to the conflict in the region will require diplomatic efforts and a genuine commitment to peace from all parties involved.

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