Israel seeks to reduce military sectors dependence on US - report

Israel seeks a new 10-year security deal with the United States, even though the country is preparing for a future with reduced American cash grants, the Financial Times reported.

The current agreement, which will expire in 2028, provides at least $4 billion to Israel every year.

According to chief financial advisor at the Israeli Defense Ministry Gil Pinchas, the country will prioritize joint military and defense projects over cash handouts in talks that he expected to take place in the coming weeks.

In 2016, the U.S. and Israeli governments signed a memorandum of understanding for the 10 years through September 2028 that provides $38 billion in military aid, $33 billion in grants to buy military equipment and $5 billion for missile defence systems.

According to earlier reports, talks on a new memorandum of understanding on security were postponed due to the Gaza war. Israel suggests that under the new agreement, money be spent on joint research and development instead of direct military aid.