Spain halts controversial $7.5m deal to buy ammunition from Israeli company

Madrid, Spain – Spain’s government halted a controversial $7.5m deal to buy ammunition from Israel on Thursday, following criticism of it from far-left allies within the governing minority coalition.

The country’s socialist prime minister, Pedro Sanchez, intervened to cancel the deal after Sumar, a group of left-wing parties, threatened to pull out of the governing coalition.

“After exhausting all routes for negotiation, the prime minister, deputy prime minister and ministries involved have decided to rescind this contract with the Israeli company IMI Systems,” a government source, who did not want to be named according to Spanish government practice, told media on Thursday.

Spain has been critical of Israel’s war on Gaza, and in October 2023, pledged to stop selling weapons to Israel. In February 2024, it said it also would not buy weapons from Israel. However, in the same month, the Spanish Ministry of Interior signed a deal with IMI Solutions to purchase 15 million rounds of ammunition. The ammunition was destined for the Civil Guard, Spain’s semi-military police force.

However, after protests from five ministers from Sumar, the Spanish government began a study to determine whether it was feasible to cancel the order.

“In October 2024, a study was started into the possible ending of the contract. After the study, the ministry decided to follow the recommendation from the state attorney, who advised against the ending of the contract at that stage, so the contract was honoured,” a spokesperson for the Spanish Interior Ministry told media, adding that ending “the contract would have involved paying … [IMI Solutions] without receiving the material.”

On Wednesday, April 23, the Interior Ministry said it would go ahead with the arms deal, six months after seeking to cancelling it, to avoid paying compensation to the Israeli company.

In response, Yolanda Díaz, deputy prime minister and leader of Sumar, told reporters in Barcelona, “This deal must be rectified. I insist, it is a flagrant violation of the agreements when we are witnessing the live genocide of the Palestinian people.”

Analysts said the row could further damage already tense relations between the Socialists and Sumar in Spain’s fragile government, especially after Sanchez announced on Tuesday that his government would raise defence spending to 2 percent of gross domestic product (GDP) to hit NATO targets, a move which angered Sumar. Under pressure from US President Donald Trump, Spain, which has the lowest NATO budget among its 32 members, rolled out a 10.5-billion-euro ($12bn) plan to meet the 2-percent goal this year.