Israel and Greece sign US$3.5 billion defence deal, largest ever between the 2

Israel signed a multibillion-dollar weapons deal with Greece, the largest between the two Mediterranean countries, as Israeli defence exports soar.

Israel’s Defence Ministry said on Monday the nearly €3 billion (US$3.5 billion) defence export deal, coined Achilles Shield, was one of the country’s largest and included a multilayered air defence system for Greece using Israeli technology.

“Israel and Greece share common strategic interests and face shared regional challenges. At a time when actors with hegemonic ambitions are seeking to expand their influence and undermine stability in the region,” said Defence Minister Israel Katz.

The agreement comes as Israeli weapons exports have reached record highs with more than US$19 billion last year, a 30 per cent increase from 2024, according to official data, despite widespread criticism of Israel’s conduct in its wars in Gaza, with Hezbollah and with Iran.

Experts say governments look to Israel because its weapons are battle-tested and they are able to see in real time that the munitions and systems work.

Israel and Greece have deepened defence ties in the last decade. Monday’s signing, however, marks the most significant deal between the two as Greece focuses on modernising its armed forces to keep pace with its neighbour and fellow Nato member Turkey amid long-standing disputes over sea boundaries in the eastern Mediterranean.