Israel and Greece signed an arms export deal worth around €3 billion (roughly $3.48 billion) on Monday, Israel's Defense Ministry said.

"Israel will build Greece a comprehensive, multi-layered air defense array, drawing entirely on Israeli-made systems," a ministry statement said.

The statement added that the systems would draw on the "extensive operational experience Israel's defense establishment has gained during the war," in seeming reference to the conflict with Iran.

What do we know about Greece's 'Achilles Shield?'

The "Achilles Shield" agreement will see Israel export several systems, including David's Sling and SPYDER, manufactured by Rafael; and BARAK MX, manufactured by Israel Aerospace Industries, the Times of Israel reported.

The deal was signed on Monday at the ministry headquarters in Tel Aviv by Defense Ministry Director General Amir Baram and his Greek counterpart, Ioannis Bouras.

It is part of a larger military modernization program, the Reuters news agency reported, citing officials.

By 2036, Greece plans to spend some €28 billion on broader military modernization. This also includes fighter jet purchases from the US, and warships from France and Italy.

Greece currently uses a mix of US-made Patriot air defense missiles, Russian S-300 systems and other various ​short-range air defences.

Israel and Greece, who share strong economic and diplomatic ties, have been negotiating the deal for around three years, according to the Jerusalem Post.

The two countries operate an air ⁠training center ​in Greece, and hold joint annual military exercises and cooperate on anti-drone systems and cybersecurity.

"This is the largest defense export deal in the history of Israel-Greece relations, and one of the largest in the history of the State of Israel," the Israeli Defense Ministry said.

Greece has a longstanding dispute with Turkey over territorial, maritime, and air sovereignty issues in the Aegean Sea and eastern Mediterranean.

Amid threats from Iran during the ongoing war, Greece recently relocated a Patriot air defense system to the island of Crete, which hosts a large US base at Souda.

Edited by: Rana Taha

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