Israel and Greece are finalizing a record €3.1 billion ($3.6 billion) defense agreement to supply advanced missile-defense systems, including David’s Sling and SPYDER, creating an integrated regional air defense network amid escalating tensions involving Turkey and Iran.
Ministry of Defense Director General Gen. (res.) Amir Baram will sign the historic agreement in Tel Aviv, which marks the largest defense export deal in Israel’s history. Negotiated over a three-year period, the accord establishes a multilayered shield for Greek airspace, shifting the country away from aging Russian and European systems.
Amir Baram and the Defense Agreement Signing
Barring any last-minute surprises, Israel and Greece are set to sign the historic defense agreement Monday that amounts to nothing less than a geostrategic earthquake, approved in Greece about a month ago. Greece is moving away from its aging Russian and European systems and entrusting the defense of its skies, from Athens to the popular tourist islands of the Aegean Sea, to three advanced Israeli missile-defense systems.
Project Achilles Shield and Advanced Hardware
Known officially in Greece as Project Achilles Shield, the procurement package relies on technology from Rafael Advanced Defense Systems and Israel Aerospace Industries (IAI). Rafael will supply David’s Sling interceptors designed to counter heavy rockets and ballistic missiles, alongside mobile SPYDER systems built to intercept unmanned aerial vehicles and drones. Meanwhile, IAI will provide the Barak MX system for aircraft and missile defense.
The agreement also encompasses a national-level command-and-control center to operate the systems and manage launches, similar to the system used in Israel, incorporating artificial intelligence capabilities. Greek companies are expected to receive about €700 million of the deal’s total value as subcontractors for Rafael and IAI. The project will include deploying SPYDER batteries on Greek islands, including popular vacation destinations visited by many Israelis.
Project Achilles Shield and Regional Power Shifts
Geopolitical Pressure and Regional Power Shifts
The procurement arrives against a backdrop of mounting geopolitical friction across the Eastern Mediterranean. This unprecedented deal with Greece has been directly affected by the extraordinary tensions between Greece and Turkey, who have always had hostile relations, but currently even more so. The Greek military buildup, while drawing closer to Israel, a leading arms supplier on a global level, is leading the Erdogan regime to become more verbally aggressive, while taking actions on the ground. A pair of Greek Air Force F-16s were scrambled last Friday to repel a Turkish drone operating in the area of the islands of Samothraki and Lemnos. These Greek islands, located in the heart of the Aegean Sea, are adjacent to Turkey and are causing a heated dispute between the countries, after about two weeks ago Turkey decided to issue a presidential decree to establish national marine parks
on the islands. In other words, from a situation in which there are clear disputes between the parties over their maritime borders, Turkey is trying to impose facts on the ground.
The Greeks are trying to be proactive themselves and are planning to establish a new drone base in Rhodes, which has prompted the Turkish Defense Ministry to respond to the move. The Turks say that establishing a drone base on an island close to Turkey will violate the demilitarized status of the island and harm peace and stability in the Aegean Sea, as well as good neighborly relations.
At the same time, the diplomatic and strategic significance of the agreement extends beyond bilateral defense, serving as a direct counterweight to regional developments. In recent years, a Sunni alliance has been taking shape among Turkey, Egypt, Saudi Arabia and the Gulf states, seeking to set the tone in both the Middle East and the Mediterranean basin. Relations among these countries were once characterized by bitter internal power struggles, including Turkey’s support for the Muslim Brotherhood in opposition to the Egyptian and Saudi governments. Recent years, however, have seen a broad reconciliation process driven by critical economic and security interests. This emerging Sunni alliance seeks to establish overwhelming influence in the Middle East and the Mediterranean basin, both as a counterweight to the Iranian-led Shiite axis and as a means of reducing Western and Israeli influence in the region. The military buildup of these countries, led by Turkey’s expanding drone and missile industry and Egypt’s massive naval acquisitions, is creating a formidable regional power complex. Against this axis, close operational and technological cooperation between Jerusalem and Athens provides a powerful counterweight. Together with Cyprus, the third side of this triangle, a significant barrier is emerging to Turkish expansionist ambitions. For Greece, the agreement provides a direct response and an effective deterrent to the territorial ambitions of Turkey and President Recep Tayyip Erdogan. Although both countries are members of NATO, Greece faces a persistent threat from Turkey, which disputes Greek sovereignty and claims over a number of islands. Turkey also invaded Cyprus in 1974 and has occupied the northern part of the island ever since.
Elbit Systems and Israel Defense Exports to Greece
Broadening Defense Ties Across Europe
This accord outpaces previous benchmark transactions for Israeli defense technology. The largest defense export deal in Israel’s history to date was IAI’s first export sale of the Arrow 3 missile defense system to Germany, worth $3.5 billion, signed in 2023. Greece is already a major Israeli customer. Elbit Systems announced a $2.3 b. deal with a foreign customer this year, according to reports from the Persian Gulf, while Rafael signed a framework agreement with Romania this year to sell SPYDER systems worth $2 b. Greece has already become a major customer of Israel’s defense industry, purchasing Spike missiles and SPICE precision-guided bombs from Rafael, Rampage missiles from Elbit Systems and IAI, and Heron 2 drones from IAI.
The air defense agreement is expected to further strengthen the strategic partnership between the two countries, with Israel playing a key role in helping protect Greek airspace. Greece, Cyprus, and Israel have strengthened their security coordination in recent years amid growing tensions with Turkey. Cyprus has also reportedly purchased Israel’s Barak MX system to defend its airspace, according to foreign reports.
Next Steps and Implementation Timeline
With the formal signing scheduled for Monday in Tel Aviv, attention shifts to industrial integration and infrastructure rollout. Greek subcontractors are slated to begin integrating local operations into the manufacturing chain, while defense planners prepare for the deployment of mobile units across designated islands.
