Rafael nears $2.2B Spyder air defense deal with Romania
Israel’s defense giant is set for one of its biggest contracts ever, as Europe’s rearmament drive fuels record exports.
Rafael is close to finalizing a major deal worth approximately €1.9 billion ($2.2 billion) with the Romanian government to supply short-range Spyder air defense systems. According to a statement from Romania’s Ministry of Defense, the agreement with Rafael has not yet been signed, but the system was selected at the conclusion of a tender process that began several years ago.
If finalized, the Spyder deal will be one of the most significant ever for Israel’s defense industry. It follows a landmark agreement two years ago, when Israel Aerospace Industries and the Ministry of Defense signed a 14 billion shekel deal with the German government for the Arrow 3 air defense system, the largest defense deal in Israel’s history and the first time the Arrow system has been exported abroad.
According to Rafael, the Spyder is designed for air defense against drones, helicopters, aircraft, and even tactical ballistic missiles. It uses two types of interceptors, both developed by the company: the Python missile and the Derby missile. The Romanian Defense Ministry’s announcement also noted that Romania is participating in a joint procurement program with seven other European countries for the MBDA Mistral 3 air defense system.
Romania is one of the few countries in Europe that maintained normal relations with Israel since the start of the October 7 war, while many other European countries sharply criticized Israel’s actions in Gaza and the widespread civilian casualties resulting from IDF operations. Against this backdrop, the French government last year blocked the participation of Israeli arms companies at defense exhibitions it hosted, including the Paris Air Show a few weeks ago, preventing them from displaying offensive weapons and blocking access to their pavilions with partitions.
Rafael directly experienced this anti-Israel sentiment in Europe about a month ago, when the Spanish government announced it was suspending a $310 million deal to purchase Spike anti-tank missiles manufactured by the company.
Despite this, Israeli defense exports surged to an all-time high in 2024, reaching $14.8 billion. Europe accounted for 54% of Israel’s total weapons exports, driven by the ongoing war between Russia and Ukraine, which has pushed European countries to replenish stockpiles and upgrade weapons systems out of fear of future conflicts.
At the NATO summit held last week in The Hague, Netherlands, attended by U.S. President Donald Trump, member states approved a plan to raise defense spending to 5% of GDP by 2035, effectively doubling current spending levels. This move aligns European countries with the strong demands made by the American president.
The record amounts that NATO countries are expected to invest in the coming decade could further benefit Israeli defense companies, especially given the interest shown by armies worldwide in weapons systems used by the IDF in Iran and Lebanon.
Rafael declined to comment.
