German arms-maker refuses to toe government embargo on Israel

“We have a responsibility to ensure that Israel is able to maintain its deterrence capabilities,” said Renk CEO Alexander Sagel.

By Batya Jerenberg, World Israel News

A German arms-maker said Wednesday that it would not toe its chancellor’s announced arms embargo on Israel, citing its sense of “responsibility” to the Jewish state.

Speaking to the Financial Times, Renk CEO Alexander Sagel said, “Of course, we see all the discussions about the Gaza Strip. But from the German point of view, we have a responsibility to ensure that Israel is able to maintain its deterrence capabilities.”

“These are not only needed in Gaza but also at other borders,” he pointed out.

Renk supplies the IDF with hundreds of gearboxes for its tanks and other armored vehicles, critical components of the heavily used machines’ engines.

Berlin’s security council has yet to approve the ban, but if it does become official government policy, the multibillion-dollar defense company would sidestep it by moving its manufacturing elsewhere, according to the CEO.

“The plan B is that we relocate production of these specific transmissions to the U.S.,” Sagel said.

On Friday, Chancellor Friedrich Merz voiced disapproval of Jerusalem’s decision to pressure Hamas into releasing the 50 hostages it is still holding by taking over Gaza City after evacuating its civilian residents, stating, “Under these circumstances, the German government will not authorize any exports of military equipment that could be used in the Gaza Strip until further notice.”

According to the Stockholm International Peace Research Institute, Germany is Israel’s second-largest arms supplier, accounting for 30% of Israel’s weapons imports from 2019 to 2023.

Merz immediately faced criticism from both inside his conservative Christian Democratic Union (CDU) party and its sister Christian Social Union (CSU) faction in the coalition.

CDU MP Roderich Kiesewetter wrote on X that suspending arms deliveries is “a serious political and strategic mistake.”

“The credibility of our raison d’état [reason of state] is measured precisely by our security cooperation and our commitment to protect Jewish life and the State of Israel,” he added.

“This includes arms cooperation and arms deliveries. I trust a friend like Israel to use its weapons in accordance with international law.”

The CSU was not consulted ahead of Merz’s announcement, its parliamentary head, Alexander Hoffmann, said, calling the move “questionable” and warning that Merz would face “internal discussions” in the coalition.

CSU MP Stephan Pilsinger told the Augsburger Allgemeine that an embargo could easily backfire on Germany.

“What happens if the Israeli government turns the tables and we no longer receive support from Israel, be it in air defense or Mossad intelligence for counterterrorism?” he asked. “Currently, we feel like we benefit more from Israel in terms of security policy than Israel benefits from us.”

This is not the first time the German leader has signaled a shift in his support for the Jewish state.

In late May, weeks after becoming chancellor, Merz condemned Israel for “caus[ing] such suffering to the civilian population” in Gaza that he said “can no longer be justified by the fight against Hamas terrorism.”

A week later, however, Foreign Minister Johann Wadephul made clear that government policy had not changed, saying, “Germany will continue to support Israel, including with weapons deliveries.”