Israel signs naval defense deal with Cyprus involving Israel Shipyards and Rafael
The agreement covers a new offshore patrol vessel equipped with Rafael systems and upgrades to an existing Cypriot Navy ship, formalizing a deal previously reported by Calcalist.
Israel and Cyprus have signed a government-to-government defense agreement under which Israel Shipyards will build a new offshore patrol vessel for the Cypriot Navy, equipped with naval systems developed by Rafael, while the two countries will also upgrade an existing Cypriot vessel.
The agreement was signed on Monday in Cyprus by Israeli Defense Ministry Director General Amir Baram and his Cypriot counterpart, Stelios Kountouris, acting permanent secretary of the Cypriot Ministry of Defense. The deal was advanced by SIBAT, the Israeli Defense Ministry’s International Defense Cooperation Directorate, and the Cypriot ministry’s directorate for armaments and defense capabilities development.
Under the agreement, Israel Shipyards will manufacture the new offshore patrol vessel, while Rafael will supply a range of naval systems. The contract also includes upgrades to the systems aboard the Ioannides, an existing patrol vessel built by Israel Shipyards and operated by Cyprus.
The Israeli Defense Ministry said the new vessel and the upgraded Ioannides would expand the Cypriot Naval Command’s capacity to conduct patrols, surveillance and search-and-rescue missions, strengthening its ability to address maritime security challenges.
The agreement confirms an emerging deal reported by Calcalist earlier this month, which put its potential value at approximately €150 million. The ministry’s announcement did not disclose the final contract value.
The deal builds on an existing defense relationship between the two countries. Israel Shipyards previously supplied Cyprus with a patrol vessel designed to protect its exclusive economic zone, equipped with radar, command-and-control systems and two Typhoon naval weapon stations.
The agreement comes as Israel deepens its defense cooperation with countries in the eastern Mediterranean. Cyprus has acquired Israeli defense technology in other areas, including the BARAK MX air and missile defense system developed by Israel Aerospace Industries, which was publicly displayed during a military parade in Nicosia earlier this month.
Israel and Cyprus have also strengthened their defense relationship alongside Greece, with the three countries sharing strategic interests in the eastern Mediterranean. The new naval agreement adds another layer to those ties, combining Israeli shipbuilding with Rafael’s weapons and naval systems expertise.
