Israel Shipyards and Rafael near €150 million naval deal with Cyprus
The proposed agreement would see Israel Shipyards supply vessels equipped with Rafael weapon systems. The deal would deepen defense ties with Cyprus as Israel expands its security partnerships in the eastern Mediterranean.
Israel Shipyards and Rafael are nearing a joint deal to sell naval vessels and weapon systems to Cyprus worth approximately €150 million, Calcalist has learned. The agreement is expected to be signed in the coming weeks, following the finalization of terms between Israel’s Ministry of Defense and Cyprus’s Ministry of Defense.
Under the proposed deal, Israel Shipyards will supply vessels to the Cypriot Navy equipped with Rafael weapon systems. The two companies have previously collaborated on defense programs involving Cyprus and other countries. Less than a decade ago, Israel Shipyards supplied Cyprus with a patrol vessel designed to protect its exclusive economic zone (EEZ). The vessel is equipped with radar, command-and-control systems and two Typhoon naval weapon stations. In recent years, Rafael and Israel Shipyards have also worked together on defense deals involving Azerbaijan and the Philippines.
The new initiative is being advanced through a government-to-government (G2G) agreement. It is intended to deepen Israel’s defense, diplomatic and economic ties with Cyprus while strengthening a strategic partnership that also includes Greece. The cooperation comes amid tensions with Turkey and efforts by Ankara to expand its regional influence during the prolonged conflict in the Middle East.
In August, Israel and Greece signed the €3 billion Achilles Shield agreement, under which Israel will help establish a multilayered Greek air defense network using systems developed by Rafael and Israel Aerospace Industries (IAI).
Beyond the naval systems now under discussion, IAI has also supplied Cyprus with its Barak MX air and missile defense system. The system was displayed publicly during a military parade in Nicosia earlier this month, marking the 66th anniversary of Cyprus’s independence. Although Israel has not officially confirmed the deal, the display offered a glimpse of the growing defense relationship between the two countries.
Israeli defense sources told Calcalist that the emerging naval agreement could pave the way for further commercial ties, including potential cooperation in defense manufacturing.
Rafael and Israel Shipyards declined to comment on the reported deal.
