Greece, Israel to ink deal for air defense systems

TEL AVIV

Greece is set to sign a $3.6 billion air defense agreement with Israel in Tel Aviv on Aug. 31, in what will become the largest defense export deal in Israeli history.

Negotiated over the past three years, the agreement will give Greece its first integrated, multilayered air defense network, designed to counter a range of potential threats, especially from Türkiye, according to the Greek media reports.

A Greek delegation will sign the deal with Israel’s Defense Ministry to acquire systems from Israeli defense companies Rafael Advanced Defense Systems and Israel Aerospace Industries (IAI).

Rafael will supply David’s Sling systems, capable of intercepting heavy rockets and ballistic missiles, as well as mobile SPYDER systems designed to counter aircraft and unmanned aerial vehicles. IAI will provide the Barak MX system, which is designed to defend against aircraft and missiles.

The deal will also include a national command-and-control center, modeled on Israel’s system, to coordinate the air defense network and manage launches. The center will incorporate artificial intelligence capabilities.

Known in Greece as the “Achilles Shield,” the project is expected to cost around 3.1 billion euros.

Greek officials said outstanding issues were resolved in recent days, including a requirement for 25 percent Greek participation in the project and the transfer of source code.

Twelve Greek companies are expected to participate as subcontractors to Rafael and IAI, undertaking more than 700 million euros worth of work.

The agreement comes as Greece, Greek Cyprus and Israel have stepped up security cooperation in recent years amid heightened tensions with Türkiye. Greek Cyprus has also reportedly acquired Israel’s Barak MX system to bolster its air defenses.

The previous largest Israeli defense export deal was IAI’s $3.5 billion sale of the Arrow 3 missile defense system to Germany, signed in 2023.