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Greece to sign $3.5 billion deal with Israel for air defence system

Cyprus Mail · 2026-08-31

AI SUMMARY

• What happened: Greece is set to sign a $3.5 billion deal with Israel for a multi-layer air defense system, part of a broader military modernization program. • Why it matters: This agreement aims to enhance Greece's defense capabilities amid ongoing tensions with Turkey and reflects a strategic partnership between Greece and Israel in regional security. • What to watch next: Monitor the implications of this deal on Greece's military spending and regional security dynamics, as well as potential reactions from neighboring countries and NATO allies.

**Greece to Sign $3.5 Billion Air Defence Deal with Israel**

Greece is poised to finalize a significant military agreement with Israel, expected to be signed on Monday, which involves the procurement of a multi-layer air defence system valued at approximately €3 billion (around $3.5 billion). This deal is part of Greece's broader military modernization initiative, aimed at enhancing its defense capabilities in response to regional security challenges.

According to two security sources who spoke to Reuters, the Greek security council has already granted initial approval for this substantial deal. The agreement will encompass advanced missile systems designed for short, medium, and long-range defense, as well as radar systems. Specifically, Greek officials are set to sign four agreements with Israel's SIBAT and MAFAT directorates in Tel Aviv, which will include the acquisition of three types of missiles.

The initiative is part of Greece's ambitious "Achilles Shield" program, which aims to invest approximately €28 billion by 2036. This program not only focuses on the multi-layer air defence system but also includes plans to purchase up to 40 F-35 fighter jets from the United States, as well as frigates from France and Italy. Additionally, a separate agreement for an anti-drone system is expected to be part of the discussions.

Greece's defense spending is notably high, reaching nearly 3.5% of its gross domestic product (GDP), a figure that surpasses that of many NATO allies. This elevated expenditure is largely attributed to the longstanding tensions and disputes with neighboring Turkey, which have prompted Greece to bolster its military capabilities.

Currently, Greece employs a mix of defense systems, including U.S.-made Patriot systems, Russian S-300 systems, and various short-range air defense systems to safeguard its airspace. The strategic partnership between Greece and Israel has strengthened over the years, characterized by robust economic and diplomatic ties. The two nations collaborate on various military fronts, including operating an air training center in Greece, conducting joint annual military exercises, and cooperating on anti-drone systems and cybersecurity.

This latest agreement follows Greece's previous military acquisitions, including the purchase of 36 Israeli-made rocket artillery systems for approximately €650 million last year. The ongoing collaboration between Greece and Israel reflects a shared commitment to enhancing regional security and defense capabilities amidst evolving geopolitical dynamics.

As Greece moves forward with this substantial investment in its military infrastructure, the implications for regional security and defense cooperation in the Eastern Mediterranean will be closely monitored by both allies and adversaries alike. The signing of this deal marks a significant step in Greece's efforts to modernize its armed forces and adapt to contemporary security challenges.

Source: Cyprus Mail
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