Israel's Rafael and Israel Shipyards Near $165 Million Cyprus Naval Deal

By מערכת ice

Translated & summarized from Ice by baba

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Hebrew · 3 newsrooms covering

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Israeli defense companies Rafael and Israel Shipyards are close to signing a 150 million euro deal to supply naval vessels and weapon systems to Cyprus. The government-to-government agreement will see Israel Shipyards build ships and Rafael integrate its advanced naval systems. This deal strengthens the trilateral alliance between Israel, Greece, and Cyprus and reflects a significant increase in Israeli defense exports.

The story in 5 lines · by baba

Rafael and Israel Shipyards are set to sign a 150 million euro naval deal with Cyprus.
The agreement includes advanced naval vessels and integrated weapon systems for the Cypriot military.
The deal is structured as a government-to-government contract between Israel and Cyprus.
This cooperation aims to bolster the strategic alliance between Israel, Greece, and Cyprus.
The contract is part of a broader surge in Israeli defense exports exceeding $19 billion.

Israel's Rafael and Israel Shipyards Near $165 Million Cyprus Naval Deal — Editorial illustration generated by baba News, not a photograph of the event.

Israeli defense firms Rafael and Israel Shipyards are nearing a significant agreement to supply naval vessels and advanced weapon systems to the Cypriot military. The deal, valued at approximately 150 million euros (about $165 million), is structured as a direct government-to-government (G2G) contract between Israel and Cyprus.

Under the agreement, Israel Shipyards will provide operational vessels, while Rafael will integrate its advanced naval attack, control, and weapon systems. This collaboration builds on previous successful partnerships between the two companies, including the supply of armed patrol boats to Cyprus for its economic waters and joint projects in the Philippines and Azerbaijan.

The substantial deal is expected to be finalized in the coming weeks, following preliminary agreements between the Israeli Ministry of Defense and its Cypriot counterpart in Nicosia. This maritime cooperation is seen as strengthening the strategic alliance between Israel, Greece, and Cyprus, serving as a counterbalance to Turkey's growing regional influence.

This development follows other recent major Israeli defense deals, including a nearly 3 billion euro agreement with Greece and the supply of Barak MX air defense systems to Cyprus. In parallel, Elbit Systems recently secured a $235 million contract to supply PULS rocket launchers and artillery rockets to Azerbaijan.

These agreements highlight a surge in Israeli defense exports, which have exceeded $19 billion, particularly since October 7. The G2G model, now accounting for over half of all contracts, offers regulatory certainty and expedited delivery, positioning Israel as a key global defense supplier amidst international instability.