Greece and Israel Sign $3.5 Billion Achilles Shield Defense Deal

Greece and Israel signed a defense agreement on August 31 in Tel Aviv to establish the Achilles Shield, a multi-layered air defense network valued between $3.5 billion and $3.6 billion. The project, one of the largest defense exports in Israeli history, integrates Rafael Advanced Defense Systems' David's Sling and SPYDER systems with Israel Aerospace Industries' BARAK MX. The network will also incorporate Greece's existing Patriot batteries and a new AI-powered command-and-control center to intercept ballistic missiles, aircraft, and drones.

Nikos Dendias, the Greek Defense Minister, described the agreement as a "decisive step toward the structural modernization of the Armed Forces." To ensure national operational control, the deal includes source-code transfers and guarantees that Greek companies will handle at least 25% of the project, worth over 700 million euros. A supplementary agreement for Rafael's Drone Dome systems was also signed to protect strategic sites.

The procurement is part of a broader 28 billion euro modernization plan through 2036 and replaces aging Russian-built S-300 and Tor-M1 inventory. The deal follows heightened regional tensions, specifically Greece's concerns over the Mecca Joint Defence Agreement between Saudi Arabia, Turkey, and Pakistan, as well as ongoing maritime disputes in the Aegean Sea. The system is expected to be fully operational within 35 months.