**Israeli Defence Firms Eye Cyprus as Route into EU’s Safe Programme**
Nicosia, Cyprus – Israeli defence companies are exploring the possibility of establishing operations in Cyprus to take advantage of the European Union’s Safe defence financing programme. This interest was highlighted during a one-day working visit by Israeli President Isaac Herzog to Cyprus, where he met with Cypriot President Nikos Christodoulides on Thursday.
The discussions between the two leaders encompassed various topics, including defence cooperation and Cyprus’ plans to enhance its military capabilities through additional acquisitions from Israel. Cyprus is positioned to receive up to €1.18 billion in financing under the EU’s Safe programme, formally known as the ‘security action for Europe programme’. This initiative aims to bolster defence investment among EU member states. Cyprus submitted its investment plan last year, which was subsequently approved by the European Investment Bank in January, leading to the formal agreement of the loan.
Israel has already established itself as one of Cyprus’ primary suppliers of defence equipment. During the talks, both leaders agreed to maintain ongoing communication regarding specific military assets that Cyprus may procure as part of its armament programme. Among the potential acquisitions discussed were the Merkava tanks, which are being considered as a replacement for Greece’s aging Leopard 1A5 units. The Merkava, known for its robust design and crew protection capabilities, is a modern Israeli battle tank that is engineered to withstand contemporary warfare challenges, including drone attacks.
In recent years, Cyprus has been actively expanding its defence procurement strategy, which includes the acquisition of advanced systems such as the Barak MX air defence systems and radar platforms from Israel, as well as plans to procure advanced attack helicopters.
In addition to defence matters, Herzog and Christodoulides addressed the development of the Aphrodite gas field, with Israeli officials indicating that an agreement concerning the field is nearing completion. The two leaders also discussed the Great Sea Interconnector (GSI) project, which aims to enhance energy cooperation between the two nations.
President Christodoulides also raised the topic of a long-standing issue dating back to 2011 regarding plans for a Cyprus-Israel agreement to avoid double taxation, which remains unresolved.
Tourism was another area of focus during the meeting, with President Christodoulides noting the significant increase in air travel between Cyprus and Israel, with over 200 flights per week now operating between the two countries. This surge in connectivity is expected to further strengthen the ties between the nations.
Herzog expressed a personal affinity for Cyprus, stating that he has loved the country since childhood. He referred to President Christodoulides as “a great friend” to Israel, appreciating the open and frank dialogue that characterizes their relationship.
In a notable remark, Herzog expressed a desire for a future trilateral meeting involving the presidents of Cyprus, Israel, and Lebanon, suggesting that such a gathering could contribute to regional peace. However, he framed this as a personal wish rather than an official initiative agreed upon by the three nations.
The discussions also touched upon the activities of Israeli investors in properties in the northern part of Cyprus, particularly in light of recent developments following the arrest of Simon Aykut, which has prompted Israel to launch an information campaign against property purchases in that region.
As Israeli defence firms consider Cyprus as a strategic entry point into the EU’s defence financing landscape, the collaboration between the two nations appears to be deepening, with potential implications for regional security and economic partnerships.