The United States has approved Israel’s sale of the Arrow 3 missile defense system to Germany, the Israeli Defense Ministry announced on Thursday.

The $3.5 billion military contract is Jerusalem’s largest ever. Berlin wants the system, which is capable of intercepting exo-atmospheric ballistic threats, to defend against the threat of Russian missiles.

“The U.S. government’s approval of the delivery … is an expression of confidence in the excellent capabilities of Israel’s defense industries. This is a significant decision, which will contribute to Israel’s force buildup and economy,” said Defense Minister Yoav Gallant in a statement Thursday.

“[It is] particularly meaningful to every Jewish person that Germany is acquiring Israeli defense capabilities,” he added.

The Arrow 3 was jointly developed by the Israeli Missile Defense Organization and the U.S. Missile Defense Agency, and is manufactured by Israel Aerospace Industries.