Israel signs $3.5bn air defence deal with Greece

Israel and Greece have signed a nearly $3.5 billion defence deal under which Israel will build a multi-layered air defence system for Greece, marking the largest defence export agreement between the two countries.

The Israeli Defence Ministry said Monday that the “Achilles Shield” system will combine Israeli-made technologies to protect Greece against a range of aerial threats, including missiles, aircraft and drones.

The agreement was signed in Tel Aviv by Israeli Defence Ministry Director General Maj Gen (retd) Amir Baram and his Greek counterpart, Ioannis Bouras.

The package includes Israel’s David’s Sling, Barak MX and SPYDER interception systems, along with air-surveillance radars and a new national command-and-control system. 

The equipment will be produced by Israeli defence companies Rafael and Israel Aerospace Industries, including its subsidiary ELTA Systems.

A separate €26 million agreement was also signed for Rafael’s anti-drone defence systems.

Greek Defence Minister Nikos Dendias described the purchase as part of what he called the biggest reform of the country’s armed forces in its history. 

He said advances in military technology had made existing defence doctrines outdated.

Dendias also said Greece was the first European Union country to adopt a multi-layered air defence system of the Israeli model.

The deal is part of a broader Greek defence investment programme worth around €4.2 billion for the Achilles Shield. 

Greece has been expanding its military capabilities amid longstanding tensions with neighbouring Turkey.

Israeli Defence Minister Israel Katz said Israel and Greece share strategic interests and face common regional challenges, pledging deeper defence and strategic cooperation.

Israel has also faced growing tensions with Turkey, including a recent Israeli strike on a former military facility in northwestern Syria that Israel said was aimed at preventing Turkish forces from deploying there.

Greece is among only four European NATO members currently spending at least 3% of GDP on defence.

The latest agreement adds to Israel’s growing defence exports to Europe. In 2023, Israel signed a deal to supply Germany with its Arrow 3 anti-ballistic missile system, later expanded to $6.5 billion, making it Israel’s largest-ever military export contract.