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Merz Halts Approvals for Arms Exports to Israel as Renk Weighs U.S. Production Relocation

The pause has prompted Renk to consider relocating tank gearbox production to the United States within ten months to honor Israeli contracts.

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Overview

  • Chancellor Friedrich Merz ordered a temporary stop to approvals of German military exports that could be used in the Gaza conflict.
  • Renk CEO Alexander Sagel told the Financial Times the company is exploring a “Plan B” to shift gearbox production for Israeli Merkava tanks to U.S. facilities over an eight- to ten-month timeline.
  • The export decision has deepened rifts in the CDU/CSU, with CSU leader Markus Söder and other party figures accusing Merz of jeopardizing Germany’s ties with Israel.
  • Rheinmetall has publicly distanced itself from supplying weapons to Israel, stating it is not currently exporting arms there.
  • Lawmakers and legal experts are calling for full transparency and a review of past export authorizations issued under the previous government.