Israel, Greece sign $3.5 billion air defense deal

Israel and Greece signed a defense export agreement worth approximately €3 billion ($3.5 billion) Monday, under which Israel will build Greece a multi-layered air defense array combining several Israeli-made systems, according to a statement from Israel’s Ministry of Defense.

The deal, known in Greece as “Achilles Shield,” is the largest defense export agreement in the history of Israel-Greece relations and one of the largest in Israel’s history, according to the ministry. Israel’s Ministry of Defense Director General, Maj. Gen. (Res.) Amir Baram, signed the agreement with his Greek counterpart, Ioannis Bouras, at a ceremony at the ministry’s headquarters.

The array includes the David’s Sling missile defense system, developed by Israel’s Missile Defense Organization with Rafael as prime developer, along with Rafael’s SPYDER air defense system. It also includes the BARAK MX system, built by Israel Aerospace Industries, and MMR multi-mission radars for air surveillance, manufactured by ELTA Systems, an IAI subsidiary. Rafael will separately develop a new national command and control system intended to integrate the full range of air defense capabilities under the program.

A supplementary contract worth €26 million ($30 million) was signed alongside the main deal for Rafael’s Drone Dome systems, intended to defend strategic sites in Greece against drones.

Greece is the second European country to acquire the David’s Sling system, according to Rafael Chairman Yuval Steinitz. The ministry described the program as the first time it will supply a country with a complete air defense array covering threats ranging from ballistic missiles to hostile drones.

“My visit to Greece a few months ago, as the guest of Greek Defense Minister Dendias, was another expression of the depth of the strategic relationship between Israel and Greece and of our shared determination to keep strengthening it,” said Israeli Defense Minister Israel Katz.

“The ‘Achilles Shield’ deal is a strategic milestone in Israel’s defense relationship with Greece, reflecting the deep trust our partners around the world place in Israel’s technological edge and the proven track record of our defense systems in the field,” said Baram.

IAI Chairman Boaz Levy referenced the company’s systems performing during recent fighting against Iran and its proxies.

“IAI’s operational air defense systems proved their capabilities in the recent fighting against Iran and its proxies, successfully intercepting a range of threats, chief among them exo-atmospheric ballistic missiles,” Levy said.

The agreement includes a broader industrial cooperation component. Israel’s Ministry of Defense said it will expand defense industrial cooperation with Greece, including the transfer of knowledge and technology to Greek industry, as part of ongoing government-to-government dialogue between the two countries’ defense ministries.

The Israeli ministry has operated under what it described as an emergency production framework since the outbreak of the war in Gaza, combining output for the Israel Defense Forces with continued exports to partner countries. The ministry attributed part of Greece’s decision to Israeli systems’ battlefield performance during that conflict and the broader regional fighting involving Iran.

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