Greece to buy $4 billion air defence system from Israel

ATHENS, July 23 (Reuters) - Greece has approved the purchase of a multi-layer air defence system worth up to €3.5 billion ($4 billion) from Israel, several types of drones and Embraer's C-390 military transport aircraft, its defence minister said on Thursday.

The country's security council, KYSEA, gave its initial approval earlier this year and approved the procurement contracts on Thursday, Nikos Dendias told journalists.

Greece wants to build a multi-layer anti-ballistic, anti-aircraft and anti-drone system, called "Achilles Shield", with Israeli radars and missiles from Rafael and IAI defence companies forming the core of the system.

"It will be ready and fully operational within 35 months, starting from today," said Nikos Dendias, adding that companies in Greece will produce at least 25% of the system.

Greece, which currently uses U.S. Patriot and old Russian S-300 systems to protect its airspace, plans to spend about €28 billion by 2036 to modernize its armed forces.

This includes buying up to 40 new F-35 fighter jets from the U.S. and frigates from France and Italy.

Dendias said that KYSEAhad also approved the purchase of threeC-390 military transport aircraft, 10 British-built VICTA mini-submarines for special operations, U.S. V-BAT unmanned aerial vehicles (UAVs) and Heron UAVsfrom Israel.

Greece spends nearly 3.5% of its gross domestic product on defence, a higher proportion than many fellow NATO countries, due to its long-standing dispute with Turkey.

With strong economic and diplomatic ties, Greece and Israel operate an air training centre on Greek territory, hold joint military annual drills and cooperate on anti-drone systems and cybersecurity.

Last year, Athens bought 36 Israeli-made rocket artillery systems for about €650 million.

($1 = 0.8749 euros)

(Reporting by Lefteris Papadimas; Editing by Lincoln Feast and Alexander Smith)