# Israel-Cyprus strategic and economic cooperation > Live situation record from CLSTR: https://clstr.news/situations/israel-cyprus-strategic-and-economic-cooperation > Updated: 2026-10-24T11:44:40.000Z. Sources: 14. Developments: 2. Israel and Cyprus are deepening bilateral ties through significant defense and economic engagements. In the defense sector, the two nations are negotiating a €150 million agreement for Israel Shipyards and Rafael Advanced Defense Systems to supply naval vessels and integrated combat systems to the Cypriot Navy via a government-to-government framework. This follows previous cooperation, such as the delivery of an offshore patrol vessel and the procurement of Barak MX air defense systems to replace Russian-made equipment. Economic integration has also expanded significantly, with Israeli investment stock in Cyprus reaching 5.1 billion euros by the end of 2024, a more than sixfold increase since 2017. These investments are concentrated in the water, energy, health, real estate, and finance sectors. Notably, the Israeli state-owned company Mekorot manages approximately 40 percent of Cyprus’s desalination capacity, and NewMed Energy holds a 30 percent stake in the Aphrodite natural gas field. ## Timeline ### 2026-10-24: Israeli investments in Cyprus reach 5.1 billion euros Israeli investments in Cyprus have surged to 5.1 billion euros, controlling 40% of desalination capacity and significant stakes in energy and defense sectors. 3 sources. https://clstr.news/cluster/israeli-investments-in-cyprus-reach-51-billion-euros ### 2026-10-20: Israel and Cyprus near €150 million naval defense deal Israel Shipyards and Rafael are nearing a €150 million government-to-government deal to supply naval vessels and weapon systems to Cyprus, strengthening regional maritime security ties. 11 sources. https://clstr.news/cluster/cyprus-and-israel-nearing-150-million-naval-defense-deal --- Cite as: Israel-Cyprus strategic and economic cooperation. CLSTR, https://clstr.news/situations/israel-cyprus-strategic-and-economic-cooperation