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Greece to buy €3.5 billion air defence system from Israel, sources say - Finance news and analysis from Global Banking & Finance Review
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Greece to buy €3.5 billion air defence system from Israel, sources say

Published by Global Banking & Finance Review

Posted on July 23, 2026

2 min read

· Last updated: July 23, 2026

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Greece Approves €3.5 Billion Air Defence Deal with Israel for Modernisation

Overview of Greece's Defence Modernisation and Air Defence Deal

Final Approval for Air Defence System Purchase

ATHENS, July 223(Reuters) - Greece's security council, KYSEA, is expected to give its final approval on Thursday for the purchase of a multi-layer air defence system from Israel, worth up to €3.5 billion ($4 billion), and several types of drones, two sources told Reuters.

KYSEA gave its initial approval earlier this year and is expected to approve the procurement contracts, an official with knowledge of the deal told Reuters.

Details of the "Achilles Shield" System

Components and Suppliers

Greece wants to build a multi-layer anti-ballistic, anti-aircraft and anti-drone system, called "Achilles Shield". Israeli radars and missiles from Rafael and IAI will form the core of the system.

Broader Defence Modernisation Plans

Planned Investments and Purchases

The Greek government has said it plans to spend about €28 billion by 2036 to modernize its armed forces, including buying up to 40 new F-35 fighter jets from the U.S. and frigates from France and Italy.

Defence Spending in Context

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

Greece-Israel Defence Cooperation

Joint Initiatives and Training

With strong economic and diplomatic ties, Greece and Israel operate an air training centre on Greek territory, hold joint military annual drills and cooperate on anti-drone systems and cybersecurity.

Recent Defence Procurements

Greece last year approved the purchase of 36 Israeli-made rocket artillery systems for about €650 million.

Additional Drone Purchases

"KYSEA will also approve the purchase of drones from U.S. and Israel," said the official.

A second official confirmed the information on the defence system from Israel and the purchase of drones.

Current Air Defence Capabilities

Greece currently uses U.S. Patriot and old Russian S-300 systems to protect its airspace.    

Exchange Rate Information

($1 = 0.8749 euros)

Reporting Credits

(Reporting by Lefteris Papadimas; Editing by Lincoln Feast.)

Key Takeaways

  • The “Achilles Shield” programme, estimated at €3.5 billion, includes Rafael’s Spyder, IAI’s Barak MX and David’s Sling systems under a unified command network, with Greek firms participating in 25 % of the project (ekathimerini.com).
  • Greece’s defence budget is rising rapidly—spending is estimated at $8.2 billion in 2026 (about 3.1 % of GDP), and the country aims to allocate €28 billion by 2036 to modernize its military, including F‑35 procurement and naval upgrades (defensebudget.org).
  • The move reinforces Greece and Israel’s deepening strategic ties—which include joint drills, training centres, cybersecurity and anti‑drone collaborations—and reflects Greece’s higher-than‑NATO-average defence spending amid regional tensions (apnews.com).

References

Frequently Asked Questions

What is the value of Greece's air defence deal with Israel?
The deal is worth up to €3.5 billion ($4 billion) and includes a multi-layer air defence system and drones.
What components make up the new air defence system?
The 'Achilles Shield' system will include Israeli radars, missiles from Rafael and IAI, and anti-drone and anti-aircraft capabilities.
Why is Greece investing heavily in its military?
Greece spends about 3.5% of its GDP on defence due to longstanding regional tensions, especially with Turkey.
What other major defence purchases has Greece made recently?
Greece approved the purchase of 36 Israeli rocket artillery systems for about €650 million and plans to buy up to 40 F-35 jets.
Which countries are involved in Greece's latest defence procurements?
Israel, the United States, France, and Italy are all involved through the supply of systems, drones, jets, and frigates.

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