Brazil Cancels $134 Million Arms Deal With Israel Over Gaza

President Lula da Silva's government has scrapped a major defense contract, calling Israel's campaign in Gaza "genocide" — a sharp rupture in a once-close relationship.

1 min readBy The Daily Federal Newsroom
Brazil Cancels $134 Million Arms Deal With Israel Over Gaza

Brazil has formally canceled a $134 million arms purchase from Israeli defense contractors, the most significant material consequence so far of President Luiz Inácio Lula da Silva's sustained criticism of Israel's military campaign in Gaza.

The contract

The deal, originally signed under the previous Bolsonaro administration, covered radar systems, anti-tank missiles and ammunition for Brazil's armed forces. Defense ministry officials confirmed the cancellation in a written statement, citing both ethical concerns and "uncertainty about supply continuity."

Lula's framing

"What is happening in Gaza is not war. It is genocide. We cannot, with a clean conscience, finance it." — President Luiz Inácio Lula da Silva

Lula has repeatedly used the word "genocide" since early 2024, drawing sharp protests from Israel — which expelled the Brazilian ambassador — and applause from much of the Global South.

The wider picture

Brazil is not alone:

  • Spain has halted new arms export licenses to Israel.
  • Colombia has suspended coal exports used by Israeli industry.
  • South Africa has filed a genocide case at the International Court of Justice.
  • Norway, Ireland and Slovenia have recognized a Palestinian state.

What Brazil loses — and gains

Israeli defense firms have long been a key supplier of cost-effective hardware to Brazilian forces, including drones used along the Amazon frontier. Replacing them — likely with European or Turkish suppliers — will take time and cost more.

Politically, the cancellation cements Lula's positioning as a leading voice for the Global South ahead of the BRICS summit and reinforces his foreign-policy doctrine of "active non-alignment."

Sources: Reuters, Folha de S.Paulo, Brazilian Ministry of Defense, ICJ filings.

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