An Israeli army soldier points a rifle during an Israeli military operation at the Balata refugee camp east of Nablus in the Israeli-occupied West Bank, on Aug. 31, 2026. (Credit: Jaafar Ashtiyeh/AFP)
Israel on Monday signed a three-billion-euro ($3.5 billion) arms deal with Greece, one of Israel's biggest ever sales at a time when it faces criticism in much of the world.
The agreement will be part of the new "Achilles Shield" aerial defense system for Greece, and comes as both Mediterranean nations are navigating tense relations with Turkey.
"The security agreement signed today with Greece, one of the largest in the country's history, is a direct continuation of the Eastern Mediterranean alliance we forged a decade ago with Greece and Cyprus. It serves as further proof of the tremendous capabilities of Israel's defense and technological industries," Prime Minister Benjamin Netanyahu said.
"This move expresses Israel's strength, the confidence in our defense exports, and the strengthening of regional alliances."
The Achilles Shield will include Israeli-made anti-missile, anti-aircraft and anti-drone systems.
The Greek defense ministry in a statement called it part of the greatest reform to its armed forces in the country's history, with Greece the first European Union nation to adopt such a multi-layered air defense system.
"We've entered an era of radical change. Modern conflicts have changed the parameters of military defense and deterrence," Greek Defense Minister Nikos Dendias said in a statement.
Recent technological developments, he said, "have long rendered existing defence doctrines completely obsolete."
A Greek defense ministry source had told AFP in late July that the upcoming purchase was part of a broader defense investment for the Achilles Shield of 4.2 billion euros ($4.8 billion).
Common foe
"Israel and Greece share common strategic interests and face shared regional challenges," Israeli Defense Minister Israel Katz said in a statement.
"At a time when actors with hegemonic ambitions are seeking to expand their influence and undermine stability in the region, Israel and Greece will continue to deepen their defense and strategic cooperation," he said, in a veiled reference to Turkey.
Netanyahu has increasingly set his sights on Turkey, whose leader, Recep Tayyip Erdogan, has been a vociferous critic of Israel's conduct of its war on Gaza.
Netanyahu recently ordered the bombing of a Syrian base where he said Turkey was preparing to establish a foothold.
While much of Greek public opinion is also sharply critical of Israel, Turkey is Greece's historic foe and tension has ratcheted up in recent years over maritime areas.
Owing to disputes with Turkey, Greece is one of only four European NATO members to spend at least three percent of GDP on its military.
The United States has long pressed European allies to spend more, with President Donald Trump saying NATO puts an unfair burden on its most powerful member.
In 2023, Israel signed a deal with Germany to provide the Arrow 3 anti-ballistic missile defense system, which was expanded in December for a total value of $6.5 billion — the country's largest-ever military export contract.
Israel has also forged deals with other partners such as India despite international criticism of its genocidal war on Gaza.
Britain in 2024 suspended a limited number of arms export licenses to Israel out of concern the weapons could be used in Gaza.
Israel also signed a supplementary 26-million-euro deal to provide Greece with defense systems against drones.
The Israeli defense ministry's director general, Major General Amir Baram, signed the package with his Greek counterpart, Ioannis Bouras, in Tel Aviv.
All the equipment is manufactured by Israeli defense contractors Rafael and Israel Aerospace Industries and its subsidiary ELTA Systems.
