Israel's Rafael Nears Major Air Defense Deal With Czech Republic
Israeli defense contractor Rafael is on the verge of signing a significant deal with the Czech Republic to supply its advanced SPYDER air defense missile systems and command and control (C2) systems. This potential agreement follows substantial progress in negotiations since Czech Foreign Minister Petr Maixner and Israeli Foreign Minister G Gideon Sa'ar confirmed discussions in July. The deal is expected to include a new national C2 system, to be developed under Rafael's leadership, which will integrate the country's air defense capabilities, similar to a strategic 'Achilles Shield' deal with Greece for three air defense systems worth 3.1 billion euros.
Air defense has become Israel's primary defense export sector, accounting for 29% of its $19.2 billion in defense exports last year, a trend projected to continue through 2026. This Czech deal, which could yield billions for Rafael, would add to a previous SPYDER sale to Romania for approximately 2 billion euros finalized three months ago. While the Czech Republic already operates four SPYDER systems in an 'All-in-One' configuration, their evolving needs necessitate a more comprehensive system than the point-defense or mobile force protection offered by the current setup.
In 2021, Israel and the Czech Republic signed a government-to-government deal for four SPYDER batteries and an MMR radar from Israel Aerospace Industries (IAI) for 2 billion shekels ($620 million). The MMR radar, a mobile 3D system capable of tracking various aerial threats including drones, aircraft, and ballistic missiles, will be showcased by the Czech Republic at the upcoming NATO Days international exhibition. The 2019 deal was Israel's first full air defense system sale to a NATO member, paving the way for subsequent major sales like the Arrow 3 to Germany and 'Achilles Shield' to Greece.
The SPYDER system, which uses Rafael's Python and Derby interceptors, is distinct from Israel's multi-layered air defense array, which includes Iron Dome, David's Sling, Arrow 2, and Arrow 3. Unlike David's Sling and Arrow 3, the SPYDER system is entirely Israeli-made, eliminating the need for U.S. approval for export, which is required for systems involving American components or funding. This lack of foreign involvement simplifies export regulations and facilitates sales to international partners.
The increased demand for air defense systems in Eastern Europe, particularly from the Czech Republic, is largely attributed to the ongoing war in Ukraine and the subsequent spillover of drone activity into NATO's eastern flank. The Czech Republic's current air defense relies on Swedish Gripen fighter jets, Swedish shoulder-fired missiles, SPYDER systems, and older Soviet-era systems, highlighting a need for modernization beyond its existing MMR radar.
Separately, Elbit Systems recently inaugurated a drone factory in Serbia, established in partnership with 'Yugoimport SDPR'. Serbian President Aleksandar Vučić announced plans to open at least three more factories with Israeli partners. This initiative stems from a $1.63 billion contract signed last August with an unnamed European country, later revealed to be Serbia, for various defense solutions including long-range precision artillery rockets and unmanned aerial combat systems.
