Spain Scraps Contested Israeli Arms Deal after Uproar

Spanish Prime Minister Pedro Sanchez is one of the most outspoken critics of Israel's military operations in Gaza. JAVIER SORIANO / AFP
Spanish Prime Minister Pedro Sanchez is one of the most outspoken critics of Israel's military operations in Gaza. JAVIER SORIANO / AFP
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Spain Scraps Contested Israeli Arms Deal after Uproar

Spanish Prime Minister Pedro Sanchez is one of the most outspoken critics of Israel's military operations in Gaza. JAVIER SORIANO / AFP
Spanish Prime Minister Pedro Sanchez is one of the most outspoken critics of Israel's military operations in Gaza. JAVIER SORIANO / AFP

Spain on Thursday cancelled a contract to buy bullets from an Israeli company following pressure from the Socialist-led government's far-left coalition partner -- a move swiftly condemned by Israel.

Spanish Prime Minister Pedro Sanchez, one of the most outspoken critics of Israel's military operations in Gaza, halted weapons transactions with Israel after the outbreak of the war following Hamas's attack on Israel on October 7, 2023.

The interior ministry sought to terminate the 6.8-million-euro ($7.8 million) contract with Israeli firm IMI Systems, which was to supply bullets to the Spanish Civil Guard police force, AFP said.

But on Wednesday the ministry said it had abandoned its attempt to cancel the deal after state legal services advised against it "due to the advanced stage of the processing of the contract" and because it would have had to pay without receiving the bullets.

The far-left Sumar party, the junior partner in Sanchez's ruling coalition, reacted angrily, calling the reversal "a blatant violation" of the government's pledge not to trade weapons with Israel.

On Thursday government sources said the contract would be "unilaterally" terminated.

"The investment board for dual-use material will deny this company permission to import this equipment to our country for reasons of general interest and, immediately afterwards, the interior ministry will terminate the contract," the sources added.

Sumar's Deputy Prime Minister Yolanda Diaz said she had personally "negotiated" with the interior minister and the prime minister to pull the plug on the contract.

Spain "cannot buy arms from a government that massacres the Palestinian people", she told reporters.

Israel's military offensive has devastated Gaza and killed more than 50,000 people in the tiny coastal territory, according to the health ministry there.

Israel said it "strongly condemns" the decision to cancel the contract, and accused the Spanish government of "sacrificing security considerations for political purposes".

Spain "continues to stand on the wrong side of history -- against the Jewish state that is defending itself from terrorist attacks", Israel's foreign ministry said in a statement to AFP.

The row over the contract came as Sumar was still reeling from Sanchez's announcement on Tuesday that Madrid will boost defense spending to two percent of annual economic output this year -- the benchmark agreed by NATO allies.

The government had previously aimed to meet this target in 2029 but brought it forward under pressure from Washington.

Sanchez's minority government has struggled to pass legislation since he secured a new term in 2023 by cobbling together an alliance of left-wing and regional separatist parties traditionally hostile to NATO and alignment with US foreign policy.

Conservative criticism

Spain's main opposition conservative Popular Party (PP) criticized the government's decision to cancel the contract.

"When a state concludes a contract with another state, it must be respected," PP leader Alberto Nunez Feijoo told reporters.

"What is the price of cancelling this contract? Who is going to pay it?" he asked.

The Hamas attack in Israel resulted in the deaths of 1,218 people, mostly civilians, according to an AFP tally based on official Israeli figures.

Palestinian militants also seized 251 hostages in their attack and 58 remain in Gaza, including 34 the Israeli military says are dead.

Israel's military response in Gaza has caused a humanitarian crisis and killed at least 51,355 people, mainly civilians, according to the Hamas-run territory's health ministry.

The United Nations considers the figures reliable.

The International Criminal Court has issued an arrest warrant against Israeli Prime Minister Benjamin Netanyahu for war crimes and crimes against humanity in Gaza.



Russia Releases Video Footage to Challenge Kyiv Over Alleged Attack

A Russian service member stands next to the remains of a drone, which, according to the Russian Defense Ministry, was downed during the repelling of an alleged Ukrainian attack on the Russian presidential residence in the Novgorod Region, in an unknown location in Russia, in this still image from a video released December 31, 2025. (Russian Defense Ministry/Handout via Reuters)
A Russian service member stands next to the remains of a drone, which, according to the Russian Defense Ministry, was downed during the repelling of an alleged Ukrainian attack on the Russian presidential residence in the Novgorod Region, in an unknown location in Russia, in this still image from a video released December 31, 2025. (Russian Defense Ministry/Handout via Reuters)
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Russia Releases Video Footage to Challenge Kyiv Over Alleged Attack

A Russian service member stands next to the remains of a drone, which, according to the Russian Defense Ministry, was downed during the repelling of an alleged Ukrainian attack on the Russian presidential residence in the Novgorod Region, in an unknown location in Russia, in this still image from a video released December 31, 2025. (Russian Defense Ministry/Handout via Reuters)
A Russian service member stands next to the remains of a drone, which, according to the Russian Defense Ministry, was downed during the repelling of an alleged Ukrainian attack on the Russian presidential residence in the Novgorod Region, in an unknown location in Russia, in this still image from a video released December 31, 2025. (Russian Defense Ministry/Handout via Reuters)

Russia's defense ministry released video footage on Wednesday of what it said was a downed drone at a briefing intended to show Ukraine tried this week to attack a presidential residence and challenge Kyiv's denials that such an attack took place. 

Kyiv says Moscow has produced no evidence to support its allegations and that Russia invented the alleged attack to block progress at talks on ‌ending the war ‌in Ukraine. Officials in several ‌Western ⁠countries have ‌cast doubt on Russia's version of events and questioned whether there was any attack. 

Video footage released by Russia's defense ministry showed a senior officer, Major-General Alexander Romanenkov, setting out details of how Moscow says it believes Ukraine attacked one of President Vladimir Putin's residences in ⁠the Novgorod region. 

Romanenkov said 91 drones had been launched from Ukraine's Sumy ‌and Chernihiv regions in a "thoroughly ‍planned" attack that he said ‍was thwarted by Russian air defenses, caused ‍no damage and injured no one. 

The video released by the ministry included footage of a Russian serviceman standing next to fragments of a device which he said was a downed Ukrainian Chaklun-V drone carrying a 6-kg explosive device which had not detonated. 

The ministry did ⁠not explain how it knew what the device's target was. 

Speaking to Reuters, Ukrainian Foreign Ministry spokesperson Heorhii Tykhyi said the footage was "laughable" and that Kyiv was "absolutely confident that no such attack took place". 

Reuters could not confirm the location and the date of the footage showing fragments of a destroyed device. The model of the destroyed device could not be immediately verified. 

Other footage featured a man, identified as Igor Bolshakov from a ‌village in the Novgorod region, saying he had heard air defense rockets in action. 


China Slams Countries That Criticized Taiwan Drills as 'Irresponsible'

A screen broadcasting news about military drills conducted by China around Taiwan is seen on a street in Beijing, China, 30 December 2025. (EPA)
A screen broadcasting news about military drills conducted by China around Taiwan is seen on a street in Beijing, China, 30 December 2025. (EPA)
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China Slams Countries That Criticized Taiwan Drills as 'Irresponsible'

A screen broadcasting news about military drills conducted by China around Taiwan is seen on a street in Beijing, China, 30 December 2025. (EPA)
A screen broadcasting news about military drills conducted by China around Taiwan is seen on a street in Beijing, China, 30 December 2025. (EPA)

Beijing slammed on Wednesday countries including Japan and Australia for their "irresponsible" criticism of China's military drills in waters around Taiwan.

China launched missiles and deployed dozens of fighter jets, navy ships and coastguard vessels around the island on Monday and Tuesday in live-fire drills.

There has been a chorus of international criticism of China's drills, including from Japan, Australia and European countries.

Japan said Wednesday that China's exercises "increase tensions" across the Taiwan Strait, while Australia's foreign ministry condemned the "destabilizing" military drills.

The European Union on Tuesday said the military activity "endangers international peace and stability".

Beijing on Wednesday hit back at the remarks.

"These countries and institutions are turning a blind eye to the separatist forces in Taiwan attempting to achieve independence through military means," foreign ministry spokesman Lin Jian told reporters at a news briefing.

"Yet, they are making irresponsible criticisms of China's necessary and just actions to defend its national sovereignty and territorial integrity, distorting facts and confusing right and wrong, which is utterly hypocritical."

Lin said Beijing appreciated countries such as Russia, Pakistan and Venezuela expressing their support for China.

"We want to reiterate China's unwavering resolve for safeguarding national sovereignty, security and territorial integrity," he added.

"Any egregious provocative act that crosses the line on the Taiwan issue will be met with a firm counter from China."


Iran Appoints New Central Bank Governor After Record Currency Fall and Mass Protests

A person walks past a sign at a currency exchange, as the value of the Iranian rial drops, in Tehran, Iran, December 30, 2025. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
A person walks past a sign at a currency exchange, as the value of the Iranian rial drops, in Tehran, Iran, December 30, 2025. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
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Iran Appoints New Central Bank Governor After Record Currency Fall and Mass Protests

A person walks past a sign at a currency exchange, as the value of the Iranian rial drops, in Tehran, Iran, December 30, 2025. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
A person walks past a sign at a currency exchange, as the value of the Iranian rial drops, in Tehran, Iran, December 30, 2025. Majid Asgaripour/WANA (West Asia News Agency) via Reuters

Iran on Wednesday appointed a new governor to the central bank after the former one resigned following a record currency fall against the US dollar that sparked large protests.

The plummeting of the rial, Iran's currency, sparked the largest protests in the country in three years, with rallies that began Sunday and continued until Tuesday.

A report by the official IRNA news agency said President Masoud Pezeshkian’s Cabinet appointed Abdolnasser Hemmati, a former economics minister, as new governor of the Central Bank of Iran. He replaces Mohammad Reza Farzin, who resigned on Monday.

Experts say a 40% inflation rate led to public discontent. The US dollar traded at 1.38 million rials on Wednesday, compared to 430,000 when Farzin took office in 2022.

Many traders and shopkeepers closed their businesses and took to the streets of Tehran and other cities to protest.

The new governor's agenda will included a focus on controlling inflation and strengthening the currency, as well as addressing the mismanagement of banks, the government’s spokeswoman Fatemeh Mohajerani wrote on X.

Hemmati, 68, previously served as minister of economic and financial affairs under Pezeshkian.

In March parliament dismissed Hemmati for alleged mismanagement and accusations his policies hurt the strength of Iran’s rial against hard currencies.

A combination of the currency's rapid depreciation and inflationary pressure has pushed up the prices of food and other daily necessities, adding to strain on household budgets already under pressure due to Western sanctions on Iran over its nuclear program.

Inflation is expected to worsen with a gasoline price change introduced in recent weeks.

Iran’s currency was trading at 32,000 rials to the dollar at the time of the 2015 nuclear accord that lifted international sanctions in exchange for tight controls on Iran’s nuclear program. That deal unraveled after President Donald Trump unilaterally withdrew the United States from it in 2018, during his first term.