Israel and Cyprus near €150 million naval contract to boost maritime defence
Israel and Cyprus are finalising a roughly €150 million agreement for Israel Shipyards and Rafael to supply naval vessels with advanced weapons to the Cypriot National Guard.
A prospective defence agreement valued at about €150 million is close to being signed between Israel and Cyprus, pending final terms from both ministries. Under the plan, Israel Shipyards will deliver naval vessels that Rafael will outfit with sophisticated weapons, enhancing the Cypriot National Guard’s sea capabilities. This initiative continues a decade-old partnership that saw Israel Shipyards supply a patrol boat for Cyprus’s exclusive economic zone.
The arrangement is framed as a government-to-government cooperation, reflecting a wider push to strengthen Israel’s strategic relationship with Cyprus amid regional tensions. Recent displays of Israeli systems, such as the Barak MX air-defence platform in Nicosia, and a €3 billion “Achilles Shield” deal with Greece illustrate a growing defence network in the Eastern Mediterranean. Sources suggest the contract could also open avenues for joint industrial projects beyond the immediate procurement. Neither Israel Shipyards nor Rafael have commented publicly on the negotiations.
Why it matters
The deal will significantly upgrade Cyprus's naval defence and deepen Israel's strategic foothold in a volatile region.
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