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Israeli firms reportedly close to €150m naval deal with Cyprus

Cyprus Mail · 2026-10-20

AI SUMMARY

• What happened: Israeli firms reportedly close to €150m naval deal with Cyprus Israel Shipyards and Rafael are reportedly close to securing a €150 million agreement to supply Cyprus with naval vessels and weapons systems, in what would mark another significant step in the expanding defence relationship between Nicosia and Tel Aviv. Ac... • Why it matters: This update may be relevant for Cyprus residents, visitors, businesses or policymakers. • What to watch next: Follow CyprusDailyLife for updates.

Israel Shipyards and Rafael are reportedly close to securing a €150 million agreement to supply Cyprus with naval vessels and weapons systems, in what would mark another significant step in the expanding defence relationship between Nicosia and Tel Aviv. According to a report published on Tuesday by Israeli financial newspaper Calcalist, the agreement is expected to be signed in the coming weeks, following discussions between the defence ministries of the two countries. The proposed deal would see Israel Shipyards supply vessels to the National Guard’s naval command, equipped with weapons systems manufactured by Rafael Advanced Defense Systems. The agreement is reportedly being negotiated on a government-to-government basis, although neither the Cypriot nor the Israeli defence ministry has publicly confirmed the reported procurement . Defence ministry sources however confirmed to the Cyprus Mail that an agreement is in place for the purchase of a patrol vessel from Israel, noting that it is well known that defence cooperation between the two countries is well established. Calcalist said the two Israeli companies also declined to comment and the report did not specify the number or type of vessels involved, their intended armament or the expected delivery schedule. The reported agreement would build on an existing relationship between Cyprus and Israel Shipyards, which previously supplied the Republic with its first patrol vessel. As the Cyprus Mail reported in September 2017, then defence minister Christophoros Fokaides attended the vessel’s launch ceremony in Haifa, where he also held talks with his Israeli counterpart, Avigdor Lieberman, on expanding military cooperation. The vessel arrived in Cyprus in January 2018 and was commissioned later that month. Measuring 62 metres in length, the patrol vessel was acquired at a reported cost of approximately €44 million and was intended to strengthen Cyprus’ ability to patrol its exclusive economic zone, protect offshore energy infrastructure and contribute to regional maritime security. The vessel is equipped with radar, command-and-control equipment and two Rafael Typhoon naval weapon stations. The latest development comes amid growing military cooperation between Cyprus and Israel, particularly in air defence, surveillance and the protection of critical infrastructure. One of the most visible examples was the appearance of the Israeli-made BARAK MX air defence system during Cyprus’ October 1 independence parade in Nicosia. Israel has already emerged as a significant supplier of military equipment to Cyprus since beyond the BARAK MX air defence system, the National Guard operates Rafael’s SPIKE LR2 anti-tank missiles, while Israeli-made Tavor assault rifles are used by its commandos. Meanwhile the Israeli embassy in Nicosia has previously told the Cyprus Mail that Israel sees Cyprus as an increasingly important defence partner and believes there is clear potential for the two countries to deepen cooperation between their defence industries, including through joint projects and technology. Describing the relationship as one based on “mutual trust, shared interests and a commitment to regional stability”, the embassy said Cyprus’ importance as a trusted partner had grown as defence cooperation deepened.

Source: Cyprus Mail
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