Israel Signs Historic $3 Billion Air Defense Deal with Greece

Israel and Greece have finalized a landmark defense agreement, valued at approximately three billion euros (over 10 billion shekels), marking the largest such deal in the history of their bilateral relations and one of Israel's largest ever. Under the "Achilles Shield" project, Israel will construct a comprehensive, multi-layered national air and missile defense system for Greece, utilizing Israeli technologies and combat-proven experience. The agreement was officially announced by Israel's Ministry of Defense on Monday, August 31st, with the signing taking place in Tel Aviv between Israeli Director-General of Defense Production Major General (Res.) Amir Baram and Greek defense procurement chief Yannis Bouras.

This deal represents a significant first for Israel, as it involves supplying an entire integrated defense system rather than individual weapon platforms. The system will incorporate David's Sling, Barak MX, and Spyder air defense systems, along with MMR multi-mission radars, all managed by a new national command and control system developed by Rafael. Additionally, a separate 26 million euro (92 million shekels) contract includes the acquisition of Rafael's Drone Dome systems to protect strategic sites from drones.

The agreement also fosters broader defense industry cooperation, including technology and knowledge transfer to Greece. Israel's Ministry of Defense hailed the deal as a new peak in strategic partnership with Greece, a key ally in the Eastern Mediterranean, underscoring the deep trust placed in Israeli technology. Israeli Defense Minister Israel Katz alluded to shared regional challenges and the need to counter "hegemonic ambitions" in the region, emphasizing continued strategic cooperation.

Officials from both sides highlighted the significance of the deal. Director-General Baram called it a "strategic milestone," showcasing global confidence in Israel's technological superiority and combat experience. He also noted that such large export deals bolster Israel's own defense industry, expanding production lines and enhancing national self-sufficiency. Rafael's Chairman Yuval Steinitz confirmed Greece as the second European nation, after Finland, to acquire David's Sling. IAI's Chairman Boaz Levy pointed to the successful interception of threats, including ballistic missiles, by their systems during recent conflicts as a testament to their capabilities.

Israel's Ministry of Defense attributes the surge in demand for its defense technologies to the recent war, with Israeli firms operating at peak capacity to meet both domestic and international demands. The combat experience gained has further fueled global interest in Israeli defense solutions.