Israel and Cyprus signed a government-to-government defence agreement on Monday in Cyprus under which Israel Shipyards will build a new offshore patrol vessel for the Cypriot navy and Rafael will supply its naval systems, the Israeli Defence Ministry said, in a deal first reported by Calcalist's CTech.

Source: CTech (Calcalist)

The agreement was signed by Israeli Defence Ministry Director General Amir Baram and Stelios Kountouris, acting permanent secretary of the Cypriot Ministry of Defence, CTech reported. The contract also covers upgrades to the systems aboard the Ioannides, an existing patrol vessel built by Israel Shipyards and operated by Cyprus.

The Israeli Defence Ministry said the new vessel, alongside the upgraded Ioannides, would support expanded patrol, surveillance and search-and-rescue missions and strengthen the Cypriot Naval Command's ability to address maritime security challenges in the eastern Mediterranean, Baird Maritime reported.

Source: Baird Maritime

Israeli business daily Globes reported a value of €150 million for the package — yaani about 15 crore euros — Baird Maritime said. The Israeli ministry's announcement did not disclose the final contract value, and Cypriot newspaper Phileleftheros had earlier reported that the new ship would be a second Saar 62-class vessel, with delivery expected by mid-2028 at the latest.

Cypriot Defence Minister Vasilis Palmas confirmed the purchase on October 23, saying Cyprus would get a second vessel like the Ioannides so the navy would have two. The 62-metre Ioannides was launched in Haifa Bay in September 2017 and commissioned in January 2018, and carries Rafael Typhoon weapon stations, Baird Maritime reported. The deal deepens defence ties between Israel and Cyprus at a time of heightened tension across the eastern Mediterranean.