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Greece to buy $4 billion air defence system from Israel - Finance news and analysis from Global Banking & Finance Review
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Greece to buy $4 billion air defence system from Israel

Published by Global Banking & Finance Review

Posted on July 23, 2026

2 min read

· Last updated: July 23, 2026

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Greece to buy $4 billion air defence system from Israel

Major Defence Procurement and Strategic Partnerships

ATHENS, July 23 (Reuters) - Greece has approved the purchase of a multi-layer air defence system worth up to €3.5 billion ($4 billion) from Israel, several types of drones and Embraer's  C-390 military transport aircraft, its defence minister said on Thursday.

Approval Process and Procurement Details

The country's security council, KYSEA, gave its initial approval earlier this year and approved the procurement contracts on Thursday, Nikos Dendias told journalists. 

The "Achilles Shield" Air Defence System

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

Timeline and Domestic Involvement

"It will be ready and fully operational within 35 months, starting from today," said Nikos Dendias, adding that companies in Greece will produce at least 25% of the system.  

Broader Military Modernization Efforts

Greece, which currently uses U.S. Patriot and old Russian S-300 systems to protect its airspace, plans to spend about €28 billion by 2036 to modernize its armed forces.

This includes buying up to 40 new F-35 fighter jets from the U.S. and frigates from France and Italy.

Additional Defence Acquisitions

Dendias said that KYSEA had also approved the purchase of three C-390 military transport aircraft, 10 British-built VICTA mini-submarines for special operations, U.S. V-BAT unmanned aerial vehicles (UAVs) and Heron UAVs from Israel.

Strategic Context and International Cooperation

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

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. 

Last year, Athens bought 36 Israeli-made rocket artillery systems for about €650 million.

Exchange Rate and Reporting Credits

($1 = 0.8749 euros)

(Reporting by Lefteris Papadimas; Editing by Lincoln Feast and Alexander Smith)

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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