Negotiations are at an advanced stage on a deal worth around €150 million between Israeli defence companies Israel Shipyards and Rafael and the Republic of Cyprus, for the supply of naval vessels equipped with advanced weapons systems, according to a report in the Israeli financial newspaper Calcalist.
The agreement is expected to be signed in the coming weeks, once the terms have been finalised between the defence ministries of Israel and Cyprus.
The agreement currently taking shape is expected to give a substantial boost to defence cooperation between Israel and Cyprus, while at the same time expanding the capabilities of the Cypriot National Guard at sea.
It also highlights the two countries' determination to deepen their strategic relationship at a time when security and stability in the Eastern Mediterranean are gaining increased importance.
Cooperation with strategic depth
Under the planned programme, Israel Shipyards will be responsible for supplying the naval vessels, which will be fitted with weapons systems made by Rafael.
The agreement is being promoted through a Government-to-Government (G2G) cooperation framework, giving the initiative a broader institutional and strategic dimension.
Cooperation between the two Israeli companies and Cyprus does not start from scratch. Less than a decade ago, Israel Shipyards supplied the Republic of Cyprus with a patrol vessel to protect its Exclusive Economic Zone (EEZ).
The vessel is equipped with radar, command-and-control systems and two Typhoon naval weapon stations.
At the same time, Israel Shipyards and Rafael have worked together on other defence programmes, including agreements involving Azerbaijan and the Philippines. The possible new deal with Cyprus would therefore build on the existing know-how and cooperation within Israel's defence industry.
Cyprus at the heart of Israel's defence cooperation
The naval agreement under negotiation is part of a broader framework for strengthening defence and diplomatic ties between Israel and Cyprus. The presence of Israeli systems within Cyprus's defence architecture is also indicative of this trend.
According to the report, Israel Aerospace Industries (IAI) has supplied Cyprus with the Barak MX air and missile defence system. The system was shown publicly at a military parade in Nicosia in early October, during events marking the 66th anniversary of the independence of the Republic of Cyprus.
Although Israel has not officially confirmed the agreement, the public display of the system highlighted the breadth of the technological and defence links between the two countries.
Strengthening these ties takes on particular significance against the backdrop of regional rivalries and tensions with Turkey, as well as the wider repercussions of the protracted conflict in the Middle East.
The Israel-Cyprus-Greece axis
The defence rapprochement between Israel and Cyprus is linked to Israel's wider strategic cooperation with Greece, creating a network of relations that carries particular weight for security in the Eastern Mediterranean.
In August, Israel and Greece signed a 3 billion euro agreement for the "Achilles Shield" programme, aimed at creating a multi-layered Greek air defence network using systems from Rafael and Israel Aerospace Industries.
These parallel initiatives reflect the growing importance of defence cooperation between the three countries, both in terms of armaments programmes and in terms of strategic coordination.
For Cyprus in particular, the deepening of relations with Israel opens up prospects for upgrading its operational capabilities and strengthening cooperation in areas of advanced defence technology.
Prospects for further cooperation
Beyond the supply of naval vessels and weapons systems, Israeli defence sources quoted by Calcalist believe the agreement could open the way to further commercial partnerships, including in the field of defence industrial production.
Such a development could give the Israel-Cyprus partnership a long-term character, going beyond a one-off arms procurement and creating additional opportunities for the transfer of know-how and the development of joint activities.
Rafael and Israel Shipyards have not commented on the report or on the agreement that is currently being drawn up.
Additional sources • www.calcalistech.com