Israel’s submarine force is viewed as critical to national security. It is intended to exercise sea control over the Eastern Mediterranean and secure sea lines of communication; Israel is dependent on imports of grain, crude oil, and raw materials … In November 2005, outgoing German Chancellor Gerhard Schroeder approved the sale of two Dolphin-class submarines to Israel for a total of â‚¬1 billion ($1.17 billion USD) [with] up to â‚¬333 million in funding from the German federal budget.
The Dolphin-class submarines [Germany] built were equipped with weapon systems similar to those installed on other diesel-electric submarines … upon arrival at Haifa, Israel, the submarines were modified, and fitted with cruise missiles armed with nuclear warheads.
Israel has tested a nuclear-capable verson of its medium-range “Popeye Turbo” cruise missile design for deployability from the 650mm torpedo tubes in its Dolphin Class submarines. The 2002 Popeye Turbo launch test location off Sri Lanka suggested that the tests may have been performed in cooperation with India.