New Delhi: Germany approved arms export licences worth nearly 800 million euros for Israel during the first five months of 2026, marking a sharp acceleration in military approvals despite Berlin’s previously stated concerns over Israel’s operations in Gaza.
The value of licences granted between January and May was greater than the total approved during the preceding 20 months, according to the German government’s response to a parliamentary question submitted by the far-right ‘Alternative for Germany’ party. Almost all approvals were issued during April and May.
More than 60 percent of the total value was allocated to an unnamed “major maritime project”—a description that analysts believe refers to the INS Drakon, which is a German-built Dolphin II-class submarine that was reportedly given to the Israeli Navy last week.
This development exposes the contradictions within Germany’s Israel policy: Berlin has criticised the devastating humanitarian consequences of the Gaza war and briefly restricted some military exports to Israel, but continues to approve major defence projects for one of its closest strategic partners.
The ‘sub-project’
Although the German government has not publicly identified the maritime project, analysts have pointed to the INS Drakon, built by German shipbuilder Thyssenkrupp Marine Systems (TKMS), at its shipyard in the port city of Kiel.
The submarine is estimated to be worth 480 million euros, broadly corresponding with the portion of the export licences assigned to the project. It completed its maiden voyage last year in the Baltic Sea and was formally transferred to the Israeli Navy in July, according to German media reports.
The Drakon belongs to Israel’s Dolphin II class of conventionally powered submarines and is believed to be capable of carrying nuclear weapons. Reports suggest that the vessel may be fitted with a vertical launching system (VLS), which could allow it to fire cruise or ballistic missiles while submerged.
During testing, sections of the submarine’s enlarged sail, or tower, were reportedly concealed beneath tarpaulins and fibreglass panels which prevented observers from determining its precise weapons configuration.
A submarine capable of launching nuclear-armed missiles could strengthen Israel’s second-strike capability, the ability to retaliate with nuclear weapons even after its land-based forces and installations have suffered a nuclear attack.
The Drakon’s delivery is part of a decades-long defence relationship between Germany and Israel. Berlin has reportedly financed about 30 per cent of the vessel’s cost, and approximately one-third of the planned Dakar-class submarines that are expected to follow it.
Shifting arms policy
The German approach to military exports to Israel has undergone several reversals since the beginning of the Gaza war in 2023.
In August 2025, Chancellor Friedrick Merz announced that Berlin would stop issuing new licences for equipment that could be used in Gaza. The restrictions were then lifted in November, with the government returning to a system under which applications were considered individually.
Deliveries authorised before the suspension continued during that period. Germany has maintained that its arms-export decisions take account of international humanitarian law and the circumstances surrounding each application.
The latest figures, nevertheless, indicate that the temporary restrictions did not produce a lasting reduction in approvals. Instead, the first months of 2026 saw licenses rise to levels exceeding those recorded throughout much of the war.
German arms exports expand
Germany is the world’s fourth largest weapons exporter. During the first half of 2026, the government authorised military exports valued at 13.87 billion euros, according to the economy ministry’s arms-export report released in mid-July.
This figure was more than four times the value of licences approved during the corresponding six months of 2025. Ukraine continued to receive the largest share of German military exports as Berlin supports Kyiv against Russia’s invasion.
Germany’s own military buildup is also becoming increasingly important to its arms manufacturers. Berlin plans to raise defence expenditure from well below 2 per cent of gross domestic product (GDP) in previous years to a stated 3.5 per cent within the next few years.
This increase will provide German defence companies with a growing domestic customer base at a time when demand for weapons, ammunition, air defence systems, and naval platforms is rising across Europe.
(Edited by Nardeep Singh Dahiya)
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