Greece signs €3bn Israeli air defence deal

Greece has signed a €3 billion ($3.5 billion) arms deal with Israel for the Achilles Shield, a multi-layered aerial defence system using Israeli-made anti-missile, anti-aircraft and anti-drone equipment.

Israel's defence ministry described the agreement as the largest defence export deal in Israel-Greece relations and one of the largest in Israel's history. The package was signed in Tel Aviv by Major General Amir Baram, director general of Israel's defence ministry, and his Greek counterpart, Ioannis Bouras.

According to Israel's defence ministry, the system includes David's Sling, Barak MX and SPYDER interception systems, air surveillance radars and a new national command and control system. The equipment is made by Rafael, Israel Aerospace Industries and IAI subsidiary ELTA Systems. Israel also signed a supplementary €26 million deal to provide Greece with systems against drones.

Prime Minister Benjamin Netanyahu said the deal was a continuation of Israel's Eastern Mediterranean alliance with Greece and Cyprus and showed confidence in Israeli defence exports. Israeli Defence Minister Israel Katz said Israel and Greece shared strategic interests and regional challenges.

The Greek defence ministry called the purchase part of what it described as the greatest reform of Greece's armed forces in the country's history, and said Greece would be the first European Union nation to adopt such a multi-layered air defence system. Greek Defence Minister Nikos Dendias said modern conflicts had changed military defence and deterrence, and that recent technological developments had made existing defence doctrines obsolete.

A Greek defence ministry source told AFP in late July that the upcoming purchase was part of a broader €4.2 billion defence investment for the Achilles Shield.

The agreement comes as Greece and Israel both have tense relations with Turkey. Greece has long-running disputes with Turkey and spends more than three percent of GDP on defence, a higher share than most NATO members.

Israel has also faced international criticism over its military response in Gaza to Hamas's October 7, 2023 attack. Britain suspended a limited number of arms export licences to Israel in 2024 over concern the weapons could be used in Gaza.

In 2023, Israel signed a deal with Germany to provide the Arrow 3 anti-ballistic missile defence system. That agreement was expanded in December to a total value of $6.5 billion, Israel's largest military export contract.