Greece, Israel finalize $3.5 billion air defence agreement

Greece is expected to sign a deal with Israel on Monday to buy a multi-layer air defence system worth about €3 billion ($3.5 billion) as part of a broader military modernisation programme, two security sources told Reuters.

The country's security council has given initial approval to the deal, which includes advanced short, medium and long-range missile systems.

"Greek officials later on Monday will sign four agreements with Israeli SIBAT and MAFAT directorates in Tel Aviv worth about €3 billion for three types of missiles and radar systems," one of the officials told Reuters.

Greece plans to spend about €28 billion by 2036 to build the "Achilles Shield" multi-layer anti-ballistic, anti-aircraft and anti-drone system, and to buy up to 40 F-35 fighter jets from the U.S. and frigates from France and Italy.

The source added that a separate agreement for an anti-drone system would also be signed.

Greece, which uses U.S.-made Patriot systems, Russian S-300 systems and various short-range air defences to protect its airspace, spends nearly 3.5% of its gross domestic product on defence, a higher proportion than many NATO allies due to its long-standing dispute with neighbouring Turkey.

Greece and Israel, which have strong economic and diplomatic ties, operate an air training centre in Greece, hold joint annual military exercises and cooperate on anti-drone systems and cybersecurity.

Last year, Athens bought 36 Israeli-made rocket artillery systems for about €650 million.

($1 = 0.8634 euros)