The German government has approved the sale of three Thyssenkrupp submarines to Israel and will provide financial support for the purchase, government spokesman Steffen Seibert told a regular news conference on Monday.
The estimated $2 billion deal has attracted attention because of a corruption scandal centred on Prime Minister Benjamin Netanyahu's personal lawyer, who also represented Thyssenkrupp Marine Systems' agent in Israel.
Seibert said an inter-governmental memorandum of understanding approving the deal would be signed later on Monday.
