Israel to Supply Cyprus with Ships and Weapons Worth €150 Million

By Вести-Калькалист

Translated & summarized from Vesty by baba

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Israel Shipyards and RAFAEL are set to sign a €150 million deal to supply Cyprus with ships and weapon systems, coordinated by the defense ministries of both countries. This government-to-government agreement aims to bolster regional ties amid geopolitical tensions. The deal follows previous arms sales and potential future collaborations in defense manufacturing. In 2025, Israel's defense exports totaled $19.2 billion, with intergovernmental agreements forming a significant portion.

The story in 6 lines · by baba

Israel Shipyards and RAFAEL will supply Cyprus with ships and weapons for approximately €150 million.
The deal is being finalized through a government-to-government framework between Israel and Cyprus.
Israel aims to strengthen defense, political, and economic ties with Cyprus and Greece through the agreement.
The transaction occurs amid Turkey's efforts to increase its regional influence.
Israel also has a major air defense deal with Greece and has supplied arms to Azerbaijan.
Israeli defense exports reached $19.2 billion in 2025, with intergovernmental deals comprising 52%.

Israel to Supply Cyprus with Ships and Weapons Worth €150 Million — Editorial illustration generated by baba News, not a photograph of the event.

Israeli defense companies Israel Shipyards and RAFAEL are finalizing a deal to supply Cyprus with ships and weapon systems valued at approximately €150 million. The agreement, which has been coordinated between the defense ministries of both nations, is expected to be signed in the coming weeks, according to a report by Calcalist. Under the terms of the deal, Israel Shipyards will construct naval vessels for the Cypriot Navy, equipped with RAFAEL's weapon systems. This collaboration follows previous arms sales to Cyprus and other countries, including a patrol vessel delivered to Cyprus less than a decade ago, fitted with radar, control systems, and two Typhoon naval combat modules. Both companies have also recently supplied arms to Azerbaijan and the Philippines.

The new transaction with Cyprus is being conducted through a government-to-government (G2G) framework. Israel aims to leverage this deal to strengthen its defense, political, and economic ties with Cyprus, as well as foster trilateral cooperation with Greece. This development occurs amidst Turkey's efforts to increase its regional influence by exploiting the ongoing conflict in the Middle East.

In related security matters, Israel and Greece signed a "Shield of Achilles" agreement in the summer of 2025, worth about €3 billion, to establish an air defense system in Greece using RAFAEL and Israel Aerospace Industries (IAI) components. Approximately two years ago, IAI began supplying Cyprus with Barak MX air defense systems to replace its older equipment. While Israel has not officially confirmed this, the new systems were displayed at a military parade in Nicosia in early October 2026.

Sources in Israel's defense sector suggest the Cyprus ship deal could lead to further joint projects, including potential cooperation in arms manufacturing. Separately, Elbit reported a $235 million contract in 2026 for missile launchers and artillery rockets to a "European country," later identified as Azerbaijan. This G2G contract, also facilitated by the Israeli Ministry of Defense, will see Azerbaijan receive EXTRA-MR missiles and PULS launchers within three years. Over the past decade, Israeli firms have secured billions in defense deals with Azerbaijan, including air defense systems, ballistic missiles, drones, and various munitions. In 2025, Israel's defense exports reached $19.2 billion, with 52% of deals being intergovernmental, which are typically faster to finalize.