Israel and Greece sign $3.5 billion Achilles Shield air defense deal

Israel and Greece signed a landmark 3 billion euro ($3.5 billion) defense agreement on August 31, 2026, to build the Achilles Shield air defense system for Greece. The deal, which is the largest ever between the two nations, will supply Greece with advanced Israeli technologies including David's Sling, SPYDER, and BARAK MX systems. This agreement comes amid a broader 28 billion euro Greek military modernization effort driven by maritime disputes with Turkey, and highlights a major surge in Israeli arms exports.

Achilles Shield defense deal

• ▪The Achilles Shield agreement represents the largest defense export deal between Israel and Greece and is one of the largest military export deals in Israel's history.
• ▪Israel and Greece signed a 3 billion euro (about $3.5 billion) defense deal on August 31, 2026, for Israel to build a multi-layered air defense system named Achilles Shield for Greece.
• ▪Alongside the main Achilles Shield agreement, Israel and Greece signed a complementary $30 million (26 million euros) deal for the sale of Rafael Advanced Defense Systems' Drone Dome systems.

Israeli arms export surge

• ▪Israeli weapons exports reached a record high of more than $19 billion last year, representing a 30% increase from 2024, despite international criticism over Israel's military conduct in Gaza, Lebanon, and Iran.
• ▪According to a March report by the Stockholm International Peace Research Institute, Israel has surpassed the United Kingdom to become the world's seventh-biggest supplier of global arms exports.

Israel-Greece strategic alignment

• ▪Israel and Greece have deepened their defense alliance over the past decade to address shared regional challenges and counter actors seeking to expand influence in the Mediterranean.
• ▪Previous defense agreements between Israel and Greece include a $1.65 billion contract with Elbit Systems to build a flight training school in southern Greece, alongside planned sales of rocket launchers and drones.

Greek military modernization

• ▪Greece spends nearly 3.5% of its gross domestic product on defense, a higher proportion than many NATO allies, driven by long-standing maritime boundary disputes with neighboring Turkey.
• ▪Greece plans to spend approximately 28 billion euros by 2036 to modernize its military, including purchasing up to 40 F-35 fighter jets from the United States and naval frigates from France and Italy.

Multi-layered defense systems

• ▪The Achilles Shield deal will supply Greece with David's Sling and SPYDER systems produced by Rafael, the BARAK MX system by Israel Aerospace Industries, and MMR multi-mission radars from ELTA Systems.
• ▪With the acquisition of the David's Sling system under the Achilles Shield deal, Greece becomes the second export customer for the air defense technology after Finland.

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