Israel Secures Largest-Ever $4 Billion Air Defense Deal with Greece

Greece's National Security Council has approved a historic $4 billion arms deal with Israel to purchase a multi-layered air defense system. The agreement, set to be signed next week in Athens by an Israeli Defense Ministry delegation, will be conducted as a government-to-government contract. Greek Defense Minister Nikos Dendias stated the system will be fully operational within 35 months and that at least 25% of the system's production will be carried out by Greek companies.

The deal involves two main Israeli contractors: Rafael, which will supply the Iron Dome system for intercepting ballistic missiles and the mobile Spyder system for countering drones, UAVs, helicopters, and low-flying aircraft; and Israel Aerospace Industries, which will provide the Barak MX system and radars for both Iron Dome and Spyder. Together with a national command and interception center, these systems will offer Greece a layered missile defense capability similar to Israel's.

This upgrade replaces Greece's aging American Patriot and Russian S-300 missile systems amid ongoing tensions with neighboring Turkey, despite both countries being NATO members. Greece will become the second European country to acquire Iron Dome, after Finland. The Barak MX system has also been sold to Slovenia, Cyprus, and other nations.

Over the past year, Greece has committed to over $5 billion in defense purchases from Israel, including Elbit rocket systems valued at over $700 million, Rampage missiles from Elbit and IAI, and Spice bombs from Rafael for its F-16 fighter jets. Greece spends nearly 3.5% of its GDP on defense, a higher rate than many NATO countries, due to its prolonged conflict with Turkey. Israel and Greece maintain strong economic and diplomatic ties, operate a joint air training center in Greece, conduct annual military exercises, and cooperate on drone defense and cybersecurity.