Israel torpedoed the purchase of combat helicopters: what went wrong

Israel torpedoed a deal to purchase 12 AH-64E Apache attack helicopters from the United States worth about $1 billion. The Finance Ministry blocked the deal due to the absence of an approved funding source of $288 million in the 2027 budget. The Pentagon extended the deadline three times, but no agreement was reached. The freed-up production slots at the Boeing plant could be taken by Saudi Arabia, Egypt or Jordan.

Israel torpedoed a deal to purchase 12 upgraded AH-64E Apache attack helicopters from the United States worth about $1 billion. The Pentagon extended the deadline for signing the agreement three times, but the Israeli government could not agree on financing. The Finance Ministry blocked the deal because there was no approved source for $288 million in the 2027 budget. The deal was supported by the Air Force command, the Defense Ministry and the National Security Council. The freed-up production slots at the Boeing plant will most likely go to Saudi Arabia, Egypt or Jordan. Prime Minister Benjamin Netanyahu invited opposition leader Yair Lapid to coordinate a change to the budget framework, but Lapid made the freezing of coalition payments to the ultra-Orthodox sector a condition. The collapse of the deal also puts other Air Force procurements at risk: KC-46 tanker aircraft and CH-53K King Stallion heavy helicopters. Israel's elections will be held on October 27.