Greece agrees up to $4 billion US arms deal, sources say

Greece Reaches $4 Billion US Arms Agreement for F-16 Upgrades and Missiles

Details of the Greece-US Defense Agreement

By Lefteris Papadimas

Overview of the Agreement

ATHENS, Oct 8 (Reuters) - Greece has agreed to spend up to $4 billion upgrading more of its F-16 fighter jets and buying advanced missiles from the US, two senior sources told Reuters on Thursday, a day after a visit by US Secretary of State Marco Rubio.

Previous and Ongoing Defense Investments

Greece had already planned to spend about €28 billion by 2036 to buy US made F-35 fighter jets and helicopters, and to build the "Achilles Shield" a multi-layer anti-ballistic and anti-aircraft system with Israeli-made weapons.

Components of the New Agreement

Advanced Weaponry and Upgrades

"The agreement includes new advanced missiles and bombs for the F-16 Viper the F-35 fighter jets, and the Black Hawk helicopters. Also the upgrade of old F-16 fighter jets to Viper version," a senior defence Ministry official told Reuters.

Financial Impact and Planning

The official added that most of the procurements have been included in the government's multi year defence plan and will not put additional pressure to the country's financials.

A senior foreign ministry official confirmed the above, adding that the cost will be spread over several years.

Strategic and Security Implications

Bilateral Security Cooperation

Rubio said on Wednesday in Athens that the two NATO allies had agreed on a joint security plan for counterterrorism information sharing between their law enforcement agencies.

Fleet Modernization Efforts

Greece agreed to buy 20 Lockheed Martin F-35 fighter jets and 35 Sikorsky UH-60M Black Hawk helicopters in 2024. Is upgrading about 82 F-16s to Viper version and wants to upgrade 37 more Block 50s to Vipers at a cost of about $1 billion.

Context and Rationale

Modernization Post-Debt Crisis

The move is part of Greece's bid to modernise its armed forces as it emerges from the 2009-18 debt crisis that led to years of austerity.

Defense Spending in the NATO Context

Greece spends nearly 3.5% of its gross domestic product on defence, a higher proportion than many other NATO countries, due to its long-standing dispute with Turkey.

(Reporting by Lefteris Papadimas; editing by Philippa Fletcher)