Israel signs $3.5 billion air defense deal with Greece

JERUSALEM/ATHENS — Israel and Greece signed a €3 billion ($3.5 billion) defense deal on Monday under which Israel will build a multi-layered air defense system for Greece as Athens pushes ahead with a broader military modernization program.

Israel’s defense ministry said it was Israel’s largest-ever defense export deal with Greece and one of the biggest in the country’s history. The agreement confirmed an earlier Reuters report.

Amir Baram, director-general of Israel’s defense ministry, said the so-called Achilles Shield deal reflected “Israel’s technological edge and the proven track record of our defense systems in the field.”

Under the deal, Israel will supply Greece with the David’s Sling and SPYDER systems produced by Rafael Advanced Defense Systems and the BARAK MX system made by Israel Aerospace Industries, as well as MMR multi-mission radars for air surveillance, manufactured by IAI unit ELTA Systems.

David’s Sling was used by Israel to intercept Iranian missiles during the war with Iran this year. Greece becomes the second customer for the system after Finland.

Greece spends nearly 3.5% of its gross domestic product on defense, a higher proportion than many NATO allies due to its long-standing dispute with neighboring Turkey.

Athens plans to spend about €28 billion by 2036 to build the Achilles Shield multi-layer anti-ballistic, anti-aircraft and anti-drone system, and to buy up to 40 F-35 fighter jets from the U.S. and frigates from France and Italy.

Under Monday’s deal, Greece will also receive a new national command-and-control system, developed by Rafael, to integrate the country’s air-defense capabilities.

A supplementary €26 million agreement will see Israel supply Greece with Rafael’s Drone Dome systems to protect strategic sites against drones and reinforce existing defenses.

Israel will also expand defense-industrial cooperation with Greece, including transfers of technology and expertise to local industry.