The possibility of Israeli defense companies establishing operations in the Republic of Cyprus to access the European Union’s SAFE defense financing was among the issues discussed during Isaac Herzog’s visit to Nicosia.
Israeli President Herzog met with Republic of Cyprus President Nikos Christodoulides during a one-day working visit. The meeting addressed the possibility of Israeli companies establishing operations in the Republic of Cyprus and thereby benefiting from the SAFE program.
Establishment and procurement conditions for SAFE
The Republic of Cyprus is eligible to receive up to 1.18 billion euros in financing from the Security Action for Europe (SAFE) program, which was established to support defense investments by EU member states.
However, Israeli companies operating in the Republic of Cyprus would not automatically gain unrestricted access to procurements financed through SAFE. The program generally requires contractors to be established within the European Union and to have their headquarters within the bloc’s borders.
Under SAFE, components sourced from outside the European Union are also limited to 35 percent of the estimated total component cost.
Military equipment and energy projects
In addition to defense cooperation, Herzog and Christodoulides discussed additional Israeli military equipment that the Republic of Cyprus could acquire. The Republic of Cyprus currently uses Israeli-made Barak MX air defense systems and radar platforms.
The two sides also exchanged views on the Aphrodite natural gas field and the Great Sea Interconnector electricity project.