Israel's Rafael secures one of its largest-ever defense exports with Romania's $2.3B Spyder deal

One of Israel’s three largest defense companies, Rafael Advanced Defense Systems, announced on Sunday that it has signed a deal valued at just over €2 billion (USD $2.28 billion) with Romania’s Ministry of National Defence to supply Spyder air defense systems designed to counter short- to medium-range aerial threats.

Under the agreement, Rafael will also provide technical support and training to the Romanian Armed Forces, with the partnership expected to potentially open the door to additional future cooperation.

The Spyder system has already been purchased and deployed by other countries, including the Czech Republic and Morocco. It is designed to intercept drones, manned aircraft and short-range ballistic missiles. Its radar system is compatible with two types of interceptor missiles, which are both manufactured by Rafael – the Derby and the Python missiles.

The deal comes as Romania has significantly expanded its defense procurement since Russia invaded Ukraine in 2022, alongside regional ally Poland, acquiring systems such as U.S.-made Abrams tanks and F-35 jets, German Lynx armored vehicles, and South Korean K9 howitzers.

The agreement marks the second-largest defense export in Israel’s history, following Germany’s $3.5 billion purchase of the Arrow-3 system in 2023, with other major deals including Finland’s $345 million David’s Sling acquisition in 2023 and India’s $2.23 billion Barak 8 purchase in 2017. Much of the work for the Romania deal will be conducted in Israel, though some components are expected to be sourced in Europe and partial assembly may take place in Romania under localized production arrangements.

Rafael secured the contract despite competition from European defense firms MBDA and Diehl, benefiting in part from its long-standing cooperation with Romania since the country joined NATO in 2004.