Israeli financial news outlet reveals €150 million warship deal with Cyprus

According to a recent report in Israeli financial newspaper Calcalist, Israeli defence companies Israel Shipyards and Rafael are in advanced negotiations with the Republic of Cyprus for a €150 million deal to supply naval vessels equipped with advanced weapons systems. This agreement, expected to be signed in the coming weeks, is part of a broader cooperation framework between Israel and Cyprus, reflecting their determination to deepen their strategic relationship.

The deal is anticipated to significantly enhance defence cooperation between the two nations and expand the capabilities of the Cypriot National Guard at sea. It also highlights the significance of security and stability in the Eastern Mediterranean, a region increasingly important for regional stability.

The naval vessels will be supplied by Israel Shipyards, while the weapons systems will be provided by Rafael. The agreement is being promoted through a Government-to-Government cooperation framework, which adds a strategic dimension to the initiative.

This potential deal builds upon a history of cooperation between Israel Shipyards and Cyprus. Less than a decade ago, Israel Shipyards supplied Cyprus with a patrol vessel, equipped with radar, command-and-control systems, and two Typhoon naval weapon stations. Moreover, Israel Shipyards and Rafael have collaborated on other defence programmes, including projects with Azerbaijan and the Philippines.

The naval agreement is part of a larger framework for strengthening defence and diplomatic ties between Israel and Cyprus. This includes the presence of Israeli systems within Cyprus's defence architecture, such as the Barak MX air and missile defence system supplied by Israel Aerospace Industries (IAI). IAI displayed the system publicly in Nicosia in October, marking the 66th anniversary of Cyprus's independence.

While Israel has not officially confirmed the agreement, the public display of the Barak MX system emphasizes the depth of the technological and defence links between the two countries. This defence rapprochement is also linked to Israel's strategic cooperation with Greece, creating a network of relations crucial for security in the Eastern Mediterranean.

For Cyprus, deepening relations with Israel offers prospects for upgrading operational capabilities and strengthening cooperation in advanced defence technology. Furthermore, beyond naval vessels and weapons systems, the agreement could pave the way for further commercial partnerships, including defence industrial production. This could provide Israel-Cyprus relations with a long-term character, fostering the transfer of knowledge and joint activities.