Israel, Greece Seal Record $3.5 Billion Air Defense Deal

Israel and Greece have signed their largest-ever defense agreement, a multi-billion-dollar package that will provide Athens with a comprehensive, multi-layered air defense network built on Israeli technology. The deal, named 'Achilles Shield,' is valued at approximately €3 billion (around $3.5 billion).

Israel's Defense Ministry confirmed the agreement on Monday, highlighting it as one of the country's most significant export contracts. The package includes a suite of Israeli-made systems, such as the David Sling and SPYDER air defense platforms, along with a new national command and control system. A separate, smaller agreement worth $30 million was also signed for the sale of Rafael's Drone Dome counter-drone systems.

Israeli Defense Minister Israel Katz framed the partnership in strategic terms, noting that both nations share common interests and face similar regional challenges. He pointed to actors with hegemonic ambitions seeking to expand influence and undermine stability. Greek Defense Minister Nikos Dendias emphasized that modern warfare has fundamentally changed defense doctrines, citing the importance of technology, ballistic missiles, and unmanned systems.

The landmark deal comes amid a surge in Israeli defense exports, which reached a record high of over $19 billion last year—a 30% increase from the previous year. This growth continues despite international criticism of Israel's military operations. Analysts suggest that governments are drawn to Israeli weaponry because it is battle-tested, with its effectiveness demonstrated in real-time conflicts.

For Greece, the agreement is a key part of its military modernization efforts, aimed at keeping pace with fellow NATO member Turkey amid long-standing disputes over eastern Mediterranean sea boundaries. The two countries have deepened defense ties over the past decade, with previous deals including a $1.65 billion agreement with Israeli firm Elbit to build a flight training school in southern Greece.

The 'Achilles Shield' deal is notable for being the first time Israel will provide a complete array of defense weapons designed to counter a range of threats, from ballistic missiles to drones. More than half of Israel's arms industry sales are currently in missiles, rockets, and air-defense systems. The agreement also coincides with Israel surpassing the United Kingdom to become the world's seventh-largest arms supplier, according to a recent report by the Stockholm International Peace Research Institute.