Israel, Greece Seal Historic $3.5B ‘Achilles Shield’ Deal to Build Multi-Layered Air Defense

Israel and Greece have finalized a landmark defense agreement worth approximately €3 billion, $3.5 billion, that will establish a comprehensive multi-layered air defense system for Greece. The deal, named “Achilles Shield” by Greece, represents the largest defense export deal in the history of Israeli-Greek relations and one of the largest ever signed by Israel. The agreement was announced on Monday, marking a significant step forward in the strategic partnership between the two nations amid escalating security concerns in the Eastern Mediterranean. Under the terms of the agreement, Israel will provide Greece with an integrated air defense architecture capable of countering a wide range of threats, including ballistic missiles, aircraft, and drones. At the core of the system will be Israel’s David’s Sling, a long-range missile defense system designed to intercept advanced missile threats. This will be complemented by Rafael’s mobile SPYDER system, which is tailored for engaging aircraft and other aerial targets. Additionally, Israel Aerospace Industries’ BARAK MX will form a critical component of the layered defense, offering protection against both air and missile threats. ELTA Systems’ MMR multi-mission radars will support situational awareness, while a new Rafael-developed national command-and-control system will integrate all elements of Greece’s air defense infrastructure. In addition to the main contract, Greece will receive Rafael’s Drone Dome counter-UAV systems to secure key strategic locations. These systems are designed to detect and neutralize unmanned aerial vehicles, providing an essential layer of protection in an era where drone-based threats are becoming increasingly prevalent. The agreement also includes provisions for expanded industrial collaboration, with Greek defense firms set to benefit from approximately €700 million in subcontracting opportunities from Israeli defense contractors such as Rafael and Israel Aerospace Industries. The procurement of the Achilles Shield system is part of a broader $31.8 billion military modernization plan approved by Greece in July, aimed at upgrading its armed forces through 2036. Greek Defense Minister Nikos Dendias has emphasized that the new air defense network is expected to reach full operational capability within 35 months. He has previously identified Turkey as a primary driver of Greece’s military modernization efforts, citing the country as a “clear and well-defined threat.” This sentiment aligns with the current geopolitical climate, where Greece and Turkey remain NATO allies but continue to engage in territorial and maritime disputes in the Aegean Sea and Eastern Mediterranean. Tensions between Greece and Turkey have further intensified in recent months, particularly in Syria, where both nations are vying for influence following the collapse of the Assad regime. Israel recently conducted airstrikes against a Syrian airbase, reportedly to prevent Turkish forces from establishing a presence in the region. Meanwhile, Turkey has been advancing its own major air defense initiative, known as the “Steel Dome” program, which aims to develop a domestically produced multi-layered defense system against aircraft, drones, and ballistic threats. Turkish President Recep Tayyip Erdogan has framed the system as a means to “instill confidence in friends and fear in enemies.” Israeli officials have also underscored the significance of the agreement, with Israeli Defense Minister Israel Katz highlighting the shared strategic interests between Israel and Greece. While he did not explicitly mention Turkey, the timing of the deal coincides with heightened tensions between the two countries. Israeli Diaspora Affairs Minister Amichai Chikli went further, linking the agreement to Ankara, stating that the strengthening of the Israel-Greece-Cyprus alliance is a direct response to what he describes as Erdogan’s “Islamist, neo-Ottoman aggression.” This rhetoric reflects a broader narrative in Israeli political discourse regarding the perceived expansion of Turkish influence in the region.