Israel to place $500 million, US-funded order for Boeing aerial refuelling tankers

TEL AVIV (Reuters) -Israel plans to buy two Boeing-made KC-46 military aerial refuelling tankers in a $500 million deal to be financed with U.S. military aid, the Israeli defence ministry said on Wednesday.

It said it would sign the contract with the U.S. government once an Israeli ministerial committee for defence procurement grants its approval. The U.S. government oversees foreign military sales and transfers to other nations.

The military already operates four Boeing-made KC-46 aerial tankers, the defence ministry said in a statement.

Ministry Director General Amir Baram said in the statement that the aircraft would strengthen the military’s long-range strategic capabilities, enabling it to operate farther afield with greater force and with increased scope.

Israel used such aerial refuelling tankers during its 12-day air war against Iran in June.

The statement said the contract would include equipping the planes with Israeli systems, which it did not specify.

Washington provides close Middle East ally Israel with billions of dollars each year to purchase American weapons and equipment.

“The contract’s scope is estimated at approximately half a billion USD (U.S. dollars) and is funded through U.S. aid,” the ministry statement said.

Recently, some U.S. Republicans and Democrats have questioned whether the government should continue giving Israel military aid, citing its war in Gaza and concerns over whether taxpayer dollars might be better spent on domestic priorities.

(Reporting by Alexander Cornwell; editing by Mark Heinrich)