Spain cancels a contract for anti-tank missiles built by an Israeli subsidiary

Key Points

• Spain has cancelled the purchase of 168 SPIKE LR2 anti-tank missile systems, originally valued at €285 million and to be produced by Pap Tecnos, a subsidiary of Israel’s Rafael Advanced Defense Systems.
• The move follows Spain’s arms export ban to Israel imposed on October 2, 2023, shortly before Hamas’s assault on southern Israel sparked the war in Gaza.
• In May 2023, Spain formally recognized a Palestinian state alongside Norway and Ireland, reflecting its shifting Middle East policy.
• Israel is also confronting legal challenges at the International Court of Justice and the International Criminal Court, including genocide allegations by South Africa and arrest warrants for top leaders.

MADRID (AP) — Spain has canceled a deal for anti-tank missile systems that were to be manufactured in Madrid by a subsidiary of an Israeli company, in a bid to move away from Israeli military technology, the Defense Ministry said Tuesday.

The decision will affect the license for 168 SPIKE LR2 anti-tank missile systems with an estimated value of 285 million euros ($325 million). The systems would have been developed in Spain by Pap Tecnos, a Madrid-based subsidiary of Israel’s Rafael Advanced Defense Systems, according to local press.

“The goal is clear...a total disconnection from Israeli technology,” government spokesperson Pilar Alegría told reporters, adding the government is studying “the effects of the cancellation.”

Israel’s Defense Ministry referred questions on the decision to Rafael. The company’s press office said in a statement to The Associated Press that it “has not been informed of any cancellation.” Pap Tecnos, located on the outskirts of Madrid, did not comment.

Spain approved the deal on Oct. 3, 2023, four days before an insurgent assault led by Hamas on southern Israel that sparked a devastating war in Gaza. Authorities argued at the time that the systems used by the Spanish forces were obsolete and should be replaced for up-to-date versions like those used by allied armies.

Spain's leftist government says it stopped exporting arms to Israel as of Oct. 2, 2023, but there where reports some shipments slipped through.

United States late last year opened an investigation into whether NATO ally Spain denied port entry to at least three cargo vessels reportedly transporting U.S. weapons to Israel.

Spain formally recognized a Palestinian state in May 2024 in a coordinated effort with Norway and Ireland. A month later, Spain became the first European country to ask the top United Nations court, the International Court of Justice, permission to join a case mounted by South Africa that accuses Israel of genocide in Gaza. Israel strongly denies the charge.

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Associated Press journalist Natalie Melzer in Nahariya, Israel, contributed.