Israel and Cyprus near €150 million naval defense deal

Israel Shipyards and Rafael Advanced Defense Systems are reportedly nearing a €150 million agreement to supply naval vessels and advanced weapon systems to Cyprus. The deal is being negotiated through a government-to-government (G2G) framework, with a formal signing expected in the coming weeks once the defense ministries of both nations finalize the terms.

Under the proposed arrangement, Israel Shipyards would provide the vessels to the Cypriot Navy, while Rafael would supply the integrated combat and weapon systems. This follows previous defense cooperation between the two nations, including the delivery of an offshore patrol vessel to protect Cyprus’s exclusive economic zone (EEZ) and the supply of the Barak MX air and missile defense system by Israel Aerospace Industries.

The agreement is seen as a significant step in deepening the strategic, diplomatic, and economic ties between Israel and Cyprus, as well as strengthening the security triangle involving Greece. This cooperation occurs amid regional tensions involving Turkey and broader instability in the Middle East.