Shani told the Washington-based Defense News in late July that Germany's
rejection appeared to be final. Israel and Germany had been negotiating an
Israeli request for a major discount of the estimated $1.6 billion deal, Middle East Newsline reported.
"We understand they can't assist us, which means we have to do a
reassessment," Shani said.
The final session in the negotiations was said to have taken place in
July 2010. Shani and a ministry delegation held talks in Berlin on July 7
when German officials announced that their government would not subsidize
any naval project with Israel. Berlin has already been planning a huge
reduction in the military.
Israel has acquired or ordered five Dolphin-class submarines, a variant
of the Type-209 underwater vessel produced by Howaldtswerke-Deutsche Werft,
a subsidiary of ThyssenKrupp. Three such submarines have been operated by
the Israel Navy for nearly the last decade, while another two were scheduled
to arrive by 2012. Each submarine, said to be capable of firing nuclear
missiles, costs between $600 and $700 million.
"There are no negotiations between Israel and Germany about submarines,"
German government spokesman Ulrich Wilhelm said on July 23.
Israel, which decided to cut its defense budget by five percent over the
next two years, was also said to have sought two Meko-class corvettes as
well as torpedoes. Meko has been produced by ThyssenKrupp's Blohm+Voss
shipyards in Hamburg.
The Israeli Defense Ministry has denied recent negotiations with Germany
for a naval deal. In a statement on July 23, the ministry also dismissed
reports that it had asked Germany for a discount for the Dolphin or Meko.
"Following press reports, we wish to clarify that there are no
negotiations with Germany for the purchase by Israel of an additional
submarine," the Israeli statement said. "The question of a discount [by
Germany] for such an acquisition is therefore not relevant."
Industry sources said Meko was deemed an alternative to the U.S.-origin
Littoral Combat Ship. LCS, still in the development stage for the U.S. Navy,
has risen sharply in cost over the last three years.
ShareThis
