The defence ministries of Cyprus and Israel signed an agreement on Monday for a new offshore patrol vessel.

Israel Shipyards will build the new ship and Rafael Advanced Defence Systems will supply its naval systems, while the Cypriot navy’s existing vessel, the Ioannides, likewise constructed by Israel Shipyards, will have its systems upgraded.

The deal was signed by the defence ministry’s permanent secretary Stelios Kountouris, and his Israeli counterpart Amir Baram.

Israel described the agreement as “a step towards stronger defence cooperation and regional stability”.

Israeli media have reported that Israel Shipyards and Rafael were close to a €150 million agreement with Cyprus covering naval vessels and weapons systems.

Defence Minister Vasilis Palmas confirmed the purchase on Friday, relaying to CyBC the new ship would be equipped in a similar manner to the Ioannides.

Palmas also said an agreement had been signed with a Greek company for a study on upgrading the naval base at Mari so that it may accommodate at least eight Allied warships.

He expects work to that end and on the Andreas Papandreou air base to begin towards the end of next spring.

The Ioannides was Cyprus’s first offshore patrol vessel, which Israel Shipyards launched from Haifa in September 2017, almost four years after the order was placed.

It reportedly cost about €44 million and carries radar, command and control systems and two Typhoon naval weapon stations.

Israel has since become a significant supplier to the National Guard, with Israel Aerospace Industries providing the Barak MX air and missile defence system, Rafael’s Spike LR2 anti-tank missiles, and Israeli Tavor rifles.

The defence ministry is also weighing the purchase of Israel’s Merkava tanks instead of Greece’s Leopard 1A5 units to replace its aging Russian made T-80 fleet.