Cyprus Signs Naval Defense Deal with Israel Shipyards and Rafael for New Patrol Vessel

Cyprus and Israel have signed a new government-to-government defense agreement covering the construction of an offshore patrol vessel by Israel Shipyards, the integration of naval systems from Rafael Advanced Defense Systems, and upgrades to an existing Cypriot Navy vessel.

The agreement was signed on October 26, 2026, during a ceremony in Cyprus by Israeli Ministry of Defense Director General Maj. Gen. (Res.) Amir Baram and Stelios Kountouris, Acting Permanent Secretary of the Cypriot Ministry of Defence.

The procurement was coordinated by Israel's International Defense Cooperation Directorate (SIBAT) and Cyprus's Armaments and Defence Capabilities Development Directorate.

Israeli media previously estimated the potential agreement at approximately €150 million. However, neither defense ministry disclosed the final contract value, delivery schedule or detailed configuration of the new vessel.

Israel Shipyards to Build New Offshore Patrol Vessel

Under the agreement, Israel Shipyards will construct a new offshore patrol vessel (OPV) for Cyprus, while Rafael Advanced Defense Systems will provide a range of naval systems.

The specific weapons, sensors and combat management systems intended for the new vessel have not been officially identified.

The contract also covers modernization of systems aboard the Commodore Andreas Ioannides (P61), an existing offshore patrol vessel built by Israel Shipyards and delivered to Cyprus in 2017.

The Ioannides is equipped with radar, command-and-control technology and Rafael Typhoon naval weapon stations. Its introduction provided Cyprus with a larger platform for offshore patrol and maritime security operations.

The newly ordered vessel and the upgraded Ioannides are intended to expand the Cypriot Naval Command's capabilities for maritime surveillance, patrol missions and search-and-rescue operations.

Rafael Expands Its Role in Eastern Mediterranean Naval Defense

For Rafael, the agreement represents another naval systems program involving an established European defense customer.

The Israeli manufacturer develops naval weapon stations, missile systems and other technologies for maritime operations. However, the Cypriot contract announcement does not specify which Rafael products will be installed aboard the new patrol vessel.

The company's international activities increasingly span both equipment deliveries and industrial cooperation. In September, AdriaDefense reported on Rafael's efforts to expand defense manufacturing partnerships in Poland, including potential additional production of Spike missile variants.

The Cyprus agreement reinforces the company's position as an Israeli defense technology supplier to European armed forces, particularly in the Eastern Mediterranean.

Senior Israeli and Cypriot Defense Officials Attend Signing

The signing ceremony was attended by senior government and industry representatives, including Brig. Gen. (Res.) Yair Kulas, head of SIBAT, and Israel's Ambassador to Cyprus, Shuli Davidovich.

Industry representatives included Eitan Zucker, CEO of Israel Shipyards, and Ran Tavor, Head of Rafael's Naval Warfare Systems Directorate.

Their participation reflects the direct involvement of the two Israeli defense companies in the procurement program.

The Israeli Ministry of Defense said the agreement would strengthen the operational capabilities of the Cypriot Naval Command and contribute to the ability of both countries to address maritime security challenges.

Cyprus Continues Diversifying Its Defense Suppliers

The naval procurement forms part of Cyprus's wider investment in military modernization and international defense cooperation.

Israel has become an important supplier to the Cypriot National Guard. Its defense industry has provided systems across several capability areas, including air defense and precision-guided weapons.

Cyprus is also strengthening defense-industrial relationships with other countries in the region. Earlier in October, AdriaDefense reported that Serbia and Cyprus had signed a defense cooperation memorandum covering joint procurement, industrial partnerships and potential development of autonomous systems.

For the country's naval forces, acquiring a second offshore patrol vessel could improve operational availability by allowing one platform to remain deployed while the other undergoes maintenance or modernization.

The addition of new Rafael systems and the upgrade of the existing Ioannides will also create further requirements for technical integration, crew training and long-term maintenance support.

The contract represents a further export success for Israel's naval defense industry and adds another significant procurement program to the expanding defense relationship between Israel and Cyprus.

Sources: Cyprus Ministry of Defence, official announcement, October 26, 2026; Israel Ministry of Defense, official announcement; CTech/Calcalist, reported contract estimate.