# Cyprus Expands Naval Procurement

On October 26, 2026, Cyprus advanced a deal for a second Israeli-built offshore patrol vessel and upgrades to the existing Ioannides (P61), including Rafael naval systems. The vessel’s price and delivery date have not been published. Cyprus also has access to up to €1.1815 billion in EU Security Action for Europe (SAFE) loans for its defense procurement programme, with an initial €177.2 million pre-financing payment confirmed in June. Separately, Cyprus says it has no permanent basing agreement with Greece but is seeking to retain Greek aircraft and naval assets currently deployed there.

- Israel Shipyards and Rafael are identified suppliers for the vessel and naval systems. Companies in shipbuilding, maritime systems, and related support may find opportunities as project requirements are developed; no public price or delivery schedule is available.
- The SAFE allocation provides financing for Cyprus’s defense procurement programme, but is not itself a contract award. Contractors should distinguish the funding envelope from specific procurements.
- Cyprus’s request to retain Greek assets is not a basing agreement or a confirmed procurement. The current signals identify no related solicitation, contract value, or bid deadline.

**Jurisdictions:** international
**Industries:** Defense & Military
**Topics:** Grants & Funding
**Published:** October 30, 2026

### Government Entities
- Republic of Cyprus Ministry of Defence
- Council of the European Union
- European Commission
- Hellenic Ministry of National Defense

### Vendors
- Israel Shipyards (Shipbuilder and supplier of the new patrol vessel)
- Rafael (Supplier of naval systems for the patrol vessel)

### Sources
- [Cyprus challenges the Türkiye–Libya pact at the UN and wants Greek F-16s to stay, though no basing deal exists. An Israeli ship contract and EU defense loans are advancing.

↳ Bosphorus News 
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