Israel and Greece on Monday signed a massive €3 billion ($3.5 billion) deal, under which Israel will build Greece a multi-tiered air defense array, as the countries continue to shore up their defense cooperation.
The “Achilles Shield” agreement will see Israel export several systems, including David’s Sling and SPYDER, manufactured by Rafael, and BARAK MX, manufactured by Israel Aerospace Industries, according to the Israeli Defense Ministry.
The ministry said it is the “largest defense export deal in the history of Israel-Greece relations, and one of the largest in the history of the State of Israel.”
It also marked the first time that Israel will supply another country with a “complete defense array against a wide range of threats,” including ballistic missiles and drones.
Multiple other countries, including the United States and Ukraine, have expressed a desire to emulate Israel’s missile defense systems, including Iron Dome, following their frequent use in the country’s multifront war.
With strong economic and diplomatic ties, Greece and Israel operate an air training center on Greek territory, hold annual joint military drills and cooperate on anti-drone systems and cybersecurity. Last year, Athens bought 36 Israeli-made rocket artillery systems for about $739 million.
The deal also comes amid growing tensions between Israel and Turkey over Ankara’s push to expand its influence in Syria. Turkey is Greece’s traditional foe and the weapons systems would largely be expected to help Athens defend against its neighbor.
The deal was signed on Monday at the ministry headquarters in Tel Aviv by Defense Ministry Director General Amir Baram and his Greek counterpart, Ioannis Bouras.
“Under the deal, Israel will build Greece a comprehensive, multi-layered air defense array, drawing entirely on Israeli-made systems and on the extensive operational experience Israel’s defense establishment has gained during the war,” the ministry said.
The statement said that a supplementary deal, valued at €26 million, was also signed today for the sale of Rafael’s Drone Dome systems.
Additionally, the ministry said Israel will “expand industrial defense cooperation with Greece, including the transfer of knowledge and technology to the local industry.”
“This project marks another milestone in defense cooperation between Israel and Greece, a key strategic partner in the Eastern Mediterranean. Greece’s choice of Israeli technology as the backbone of its most ambitious air defense buildup program in the past decade reflects the depth of trust built between the two countries,” the statement added.
Defense Minister Israel Katz said the decision to deepen defense cooperation was made on his last visit to Greece.
“Israel and Greece share common strategic interests and face shared regional challenges. At a time when actors with hegemonic ambitions are seeking to expand their influence and undermine stability in the region, Israel and Greece will continue to deepen their defense and strategic cooperation, and will act with determination to preserve stability and safeguard their security and shared interests,” Katz said in apparent reference to Turkey.
Baram said the deal is “a direct application of the Ministry’s strategy: growing defense exports as a key driver of IDF force buildup, of Israel’s foreign policy influence, and of a stronger national defense industry and economy.”
“Government-to-government deals at this scale are more than diplomatic and economic wins — they drive the expansion of Israel’s production lines, build up stockpiles, and strengthen the country’s munitions independence.”
Greece has traditionally invested at least 2 percent of gross domestic product in its defense, owing to decades of tension with Turkey.
Lately, Greece has sought to strengthen its position on the EU’s Eastern Mediterranean border, close to the conflict zones of the Middle East. It now spends nearly 3.5% of its gross domestic product on defense, a higher proportion than many fellow NATO countries.
Meanwhile, Israel secretly signed a memorandum of understanding to extend defense cooperation with Finland until 2034, including research and development and equipment purchasing, Finland’s Yle public broadcaster reported on Saturday.
According to the report, the deal, which extends the original MOU signed in 2013, also establishes a joint coordination group to meet annually to discuss the defense relationship.
The report drew criticism from Finland’s left-wing Green League party head Sofia Virta, who wrote on Facebook that the government’s policy on Israel “is Finland’s historical shame,” citing Israel’s treatment of Palestinians.
Finland inked the first-ever agreement for the sale of Israel’s David’s Sling air defense system in November 2023, a month after the Hamas-led October 7, 2023, massacre that sparked the war in Gaza.
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