IAI and Rafael close in on landmark €3 billion Greek defense contract
A parliamentary vote this week could approve one of Israel's largest-ever defense export deals, centered on Greece's new multilayered air defense network.
Israeli defense companies are on high alert ahead of a Greek parliamentary vote this week that is expected to finalize a €3 billion ($3.4 billion) air defense deal with Israel Aerospace Industries (IAI) and Rafael. The agreement is part of Greece's Achilles Shield program, under which the country plans to build a multilayered air defense network based largely on Israeli technology as it continues a broader military modernization effort.
The proposed package includes Rafael's David's Sling and SPYDER air defense systems, as well as IAI's Barak MX air and missile defense system. IAI's ELTA Systems division is expected to provide the radars, while Israeli state-owned Tomer could also benefit by supplying rocket motors for the SPYDER and Barak MX interceptors.
If approved, the agreement would rank among Israel's largest-ever defense export deals in Europe and further deepen the rapidly expanding defense partnership between Jerusalem and Athens.
The air defense procurement follows a series of major Israeli defense contracts with Greece. In April, the two countries signed a $750 million government-to-government agreement under which Elbit Systems will supply the Greek armed forces with PULS precision rocket launchers and rockets with ranges of 40 to 300 kilometers. The contract, which includes dozens of launchers, will be executed over four years, with Elbit providing maintenance and support for a decade afterward. It also includes industrial cooperation, with some components to be manufactured by Greek defense companies.
The PULS deal came after more than two and a half years of negotiations that were delayed by the war in the Middle East. Structured as a government-to-government agreement, the contract is designed to streamline procurement by having both governments guarantee delivery schedules and payment terms.
Athens' recent purchases reflect a broader military buildup driven by rising tensions with neighboring Turkey and a push to strengthen both its air defense and long-range precision strike capabilities. Beyond the PULS deal, Greece also acquired Rafael's Spike anti-tank missiles in a deal worth approximately €370 million three years ago, making Israel one of its fastest-growing defense suppliers.
