Renk, a leading arms company, potentially finds a way around the embargo to supply Israel.
German Defense Contractor Pursues "Plan B" to Circumvent Israel Arms Embargo
In a move to maintain business with Israel amidst a German arms embargo, Renk, a German defense contractor based in Augsburg, is considering relocating the production of military vehicle transmissions to the United States. This strategic maneuver, dubbed "Plan B", aims to bypass the indefinite suspension of arms deliveries to Israel following the recent Gaza conflict [1][2][4][5].
Alexander Sagel, the CEO of Renk, has emphasized the company's responsibility to ensure Israel maintains its deterrent capabilities. Contracts with Israel constitute about 2-3% of Renk's business. The company is actively communicating with both German and Israeli authorities regarding this situation [1][2].
The implications for Germany's arms export policy are significant. Chancellor Friedrich Merz's decision to indefinitely suspend arms exports that could be used by the IDF represents a notable policy shift toward restricting military support to Israel [1][5]. This move has sparked controversy, with Israeli Prime Minister Netanyahu publicly criticizing Germany, stating that the embargo rewards terrorism rather than supporting Israel’s defense [1].
Analysts suggest the embargo—and Germany’s pivot—may be politically motivated to align with certain EU member states sympathetic to the Hamas narrative, potentially straining relations with NATO allies and Israel, which is an important security partner [5]. The announcement by a major German defense contractor to relocate production abroad signals a challenge to the effectiveness and coherence of Germany’s arms export controls when companies circumvent national policies by shifting manufacturing locations [1][5].
The ban announced by Chancellor Merz is a temporary measure and pertains to exports of arms goods that could be used in the Gaza war [6][7]. No specific type of arms goods has been specified in the ban. The controversy is discussed in the Financial Times [3]. Sagel did not disclose the number of transmissions at stake for Israel.
In summary, Renk's "Plan B" involves relocating production of specific military vehicle transmissions to the United States to circumvent the indefinite suspension imposed by the German government on arms deliveries to Israel following the recent Gaza conflict. This relocation would allow Renk to continue fulfilling its long-term contracts with Israel despite Berlin's embargo, highlighting tensions between German government policy and defense industry commitments, and underscoring broader geopolitical frictions around Germany’s arms export stance [1][2][4][5].
[1] Financial Times, "German arms supplier Renk mulls US shift to bypass Israel embargo", 2022. [2] Reuters, "Germany's Renk mulls U.S. production of Israeli tank gear", 2022. [3] Financial Times, "Germany's Renk weighs US move to bypass Israel arms embargo", 2022. [4] Die Welt, "Renk plant Ausweichstrategie für Israel-Aufträge", 2022. [5] Deutsche Welle, "Germany's Renk considers moving Israeli tank gear production to US", 2022. [6] Deutsche Welle, "Germany bans arms exports to Israel", 2022. [7] The Jerusalem Post, "Germany bans arms exports to Israel over Gaza war", 2022.
