Rafael signs huge air defense deal with Romania

Rafael Advanced Defense Systems today announced that it has signed an agreement with Romania’s Ministry of National Defense for the Spyder air defense system to protect the country against short- to medium-range air threats (VSHORAD-SHORAD), as part of a large-scale strategic agreement with an estimated value of over €2. Last week, the first order from the full framework agreement was signed.

The closing of the deal follows the Romanian Ministry of National Defense’s decision in June 2025 to select the Spyder system for €1.9 billion. The deal includes additional systems taking it above €2 billion.

With the signing, this deal becomes the second largest defense sale ever by an Israel company, after the sale of the Arrow 3 by Israel Aerospace Industries (IAI) to Germany in 2023, for about $3.5 billion. That deal broke the record for the sale of the Barak 8 (MRSAM) system to India in April 2017, for about $1.6 billion. About a month later, the naval version of Barak 8 missiles was also sold to India for an additional $630 million.

Spyder is an advanced air defense system, which is in operational use in several armies around the world, including Czechia and Morocco, and provides air defense solutions at different ranges and against a variety of air threats, including drones, aircraft, helicopters and short-range ballistic missiles. The system intercepts the threats using two families of interceptors manufactured by Rafael – Python and Derby.

The tender that Rafael won was approved by the Romanian parliament in Bucharest in 2020, and the procurement process began in 2023. This strategic deal complements Romania’s air defense procurement, which includes shoulder-fired missile systems and platforms for long-range threats.

The Romanians plan to finance part of the deal through EU assistance programs, including the “Ammunition Production Support Act” (ASAP) and the “Strengthening the European Defense Industry through Joint Procurement Act” (EDIRPA), This will require the Israeli company to integrate companies from the continent in general, and Romania in particular, into production. However, Rafael has extensive experience in integrating foreign companies, with its well-known product series – Spike series anti-tank missiles – being manufactured in Europe by Eurospike, a joint venture between Rafael and two European companies, with equal holdings.

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Rafael beat the Germans and the French

Beyond the deal itself and its high value, this is a significant achievement for Rafael, due to the rivals it faced in the tender: Korean company League NEX1 was eliminated from the process back in 2024, due to problems with the tender documents, but more significant were the European rivals French giant MBDA and German company Diehl. MBDA, headquartered in Paris, offered Mistral 3, while Diehl offered the IRIS systems. Even though Rafael prevailed, there was concern the deal might be canceled, due to financial gaps in the negotiations between the Israeli company and the Romanian Ministry of Defense. These differences have finally been bridged, leading to the closing of the deal.

A fundamental advantage of the Spyder system, which is likely to have influenced the Romanian decision-making process, is the possibility of also using Spyder in its unique all-in-one version. This configuration offers a complete air defense system that includes: an integral radar, a dedicated electro-optical payload, an advanced command and control system, and Python and Derby interceptors, all mounted on a single vehicle.

This configuration constitutes an optimal air defense solution for point defense or as air defense for maneuvering forces; either as part of a Spyder battery or as an independent deployment and operated by a minimal team. In a trial conducted in January 2025 in Israel, several scenarios simulating existing and future threats were examined, during which the Spyder system, in its new configuration, intercepted an unmanned aerial vehicle in a challenging operational scenario with a direct and precise hit.

The current agreement constitutes another layer in the long-standing partnership between Rafael and Romania. Over the past three decades, Rafael has provided Romania with advanced tactical missile systems (SPIKE), electro-optics and communications for all branches of the military – the Romanian Air Force, Land Force and Navy, along with additional operational capabilities, which are a solid basis for mutual trust and operational compatibility. This agreement reflects not only technological compatibility, but also a deepening of defense cooperation between the countries.

Published by Globes, Israel business news – en.globes.co.il – on June 28, 2026.

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