Inside Greece and Israel's Landmark $3.5bn 'Achilles Shield' Defence Agreement

Director General of the Israel Ministry of Defence Maj Gen Amir Baram and his Greek counterpart, Ioannis Bouras, met in Tel Aviv on August 31, 2026, to sign a landmark defence pact. Under the $3.5bn agreement, Greece and Israel will build an integrated, multilayered defence network known as the Achilles Shield to protect Greek territory. The package incorporates David’s Sling and Spyder interceptors, the Barak air and missile defence system, and multimission radars, alongside a separate agreement for Drone Dome systems to safeguard strategic sites from UAVs. This represents the largest defence deal ever finalized between the two nations and stands as one of the most significant export agreements in Israel's recent history.

The agreement is particularly notable as it comes during a period when Israel’s global standing faces significant challenges. In Greece, approximately 65 percent of citizens currently view Israel unfavourably. Despite this public sentiment, Athens has chosen to deepen its ties with Israel in the sensitive domain of defence technology, driven largely by the security implications of Israel's conflict with Iran. Following an incident in early March where an Iranian drone struck Cyprus—a close partner and neighbour of Greece—concerns grew regarding regional drone threats. Greek Defence Minister Nikos Dendias subsequently urged Athens to develop its own antidrone dome, reflecting a broader regional push for battle-tested military solutions that is also seen among countries like Saudi Arabia, Qatar, and the United Arab Emirates acquiring technology from Ukraine.

Beyond immediate security necessities, the deal reflects Israel's long-standing periphery doctrine, which seeks alliances with non-Arab states on the edge of the Levant to counter regional hostility. Historically, Turkiye was Israel's primary partner under this doctrine after becoming the first Muslim country to recognise Israel in 1949. However, relations between Ankara and Tel Aviv deteriorated following Israel's 2008 offensive in the Gaza Strip and subsequent disagreements over Palestinian territories, culminating in an embargo on Israel by Ankara in 2024. Amid these shifting dynamics and growing rivalries, Greece has stepped in to fill the strategic void. Enhanced military cooperation formalized through a Joint Action Plan in late 2025, combined with growing energy cooperation in the eastern Mediterranean and a surge in Israeli tourism, has solidified the strategic alignment between Israel, Greece, and Cyprus.