US policy threatens Elbit’s PULS deal with Greece

Elbit Systems Ltd. (Nasdaq: ESLT; TASE:ESLT) notified the Tel Aviv Stock Exchange (TASE) last week that its PULS rocket artillery system has been chosen by the Greek armed forces. However, Globes” understands that Lockheed Martin – Elbit’s main business rival on the product – has not given up hope of winning the contract from Greece.

In a press release, Elbit said that the Greek parliament and the Government Council for National Security Council (KYSEA) had approved the budget for the purchase of the systems for the Greek army, which according to reports is about $812 million (€691 million) for 36 PULS systems. “The anticipated contract award is contingent, among others, on completion of commercial negotiations with the Hellenic Ministry of National Defense,” Elbit said.

Elbit’s announcement even noted that KYSEA’s decision had been made about a week earlier. The advance announcement itself is not without precedent, as Elbit also took a similar step in establishing a flight school in Greece in 2021 for $1.65 billion.

Ostensibly, this is a technical procedure between Israel’s Ministry of Defense and its Greek counterparts as part of a G2G (government-to-government) deal, but in reality this is not the case. History shows that in the final stage, strategic Greek security deals are not always realized, including a potential purchase of British Challenger tanks in 2003, which was replaced with German Leopard tanks.

Elbit Systems’ PULS provides a comprehensive and cost-effective solution capable of launching unguided rockets, precision-guided munitions, and missiles with various ranges. The PULS launcher is fully adaptable to existing wheeled and tracked platforms, enabling significant reductions in maintenance and training costs.

In recent days, an official US measure has been introduced that could disrupt Greek plans. The US has decided not to allow European countries to use US rockets and missiles in Elbit’s EuroPuls launchers, which the company created with KNDS, due to concerns about “technology leaks.” According to a report on the “Defense Express” website, the US has refused Germany’s desire to operate its Lockheed Martin-made weapons in non-American systems.

The Greeks are asking questions

This is a major development, because one of the most significant features of PULS is its compatibility with launching various rockets and missiles made by different companies and countries. On a formal level, the US may fear that using their own means in foreign systems, in which Israel is also involved, could reveal the operating principles of sought-after modern missiles such as ATACMS. However, this is a US government measure that raises questions about whether it is indeed a fundamental concern about business espionage, or an attempt to limit strategic security deals with many customers.

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Information obtained by “Globes” indicates that the US step has raised questions among senior Greek security officials, and from Washington’s perspective, the measure has broad consequences. What this means for the Greeks is that if they continue with the PULS acquisition, they will have many rockets in their possession that will be out of use. Greece currently operates M270A0 MLRS systems, and Lockheed Martin’s offer to upgrade their rocket array is cheaper than the one on the table with Elbit.

The US defense giant is offering that the Greek Ministry of Defense take 15 existing MLRS systems, upgrade them from A0 to A2, and supply 15 new HIMARS systems for $500-600 million. HIMARS (High Mobility Artillery Rocket System) is a 6X6 truck-mounted system designed for precise rocket launches up to 300 km. That is, a maximum range similar to PULS.

Therefore, the question of the final signing of the deal does not stem only from the capabilities of the two systems, since they are equal in range. While Elbit’s proposal is already more expensive than Lockheed Martin’s, due to the inclusion of rockets with different ranges, there is also a question of whether the Greek Defense Ministry will be comfortable with a move that will result in a situation in which they will not be able to use many existing rockets.

An issue that may benefit Elbit on the way to signing the deal, which according to Greek Defense Minister Nikos Dendias will include at least 25% local production, is the Greek ambition to move forward with the Israel’s Ministry of Defense on a particularly large and broad deal. Greece hopes to create a new advanced multi-layered missile protection system against the Turkish missile and rocket threat using Israeli air defense systems.

The giant deal to purchase three air defense systems for about €3 billion ($3.5 billion), a similar amount to Israel’s sale of the Arrow 3 to Germany, is expected to include Rafael’s Spyder, which will replace the Russian OSA-AK and Tor M-1, Israel Aerospace Industries’ Barak MX, which will replace the Hawk, and Rafael’s David’s Sling, which will replace the Russian S-300.

“There will be no great impact”

The extensive deal stems from the fact that Greece has not invested in its military technologies for many years, and now the country has now found itself lagging behind in general, and vis-a-vis the main Turkish threat in particular. The $3.5 billion deal would initially cover only the regions of Thrace and the eastern Aegean Sea, and additional deals are expected to be concluded later.

Elbit Systems responded, “This is significant information, which has also been partially expressed in the media. The company saw fit to report to the public transparently, in accordance with its policy and after receiving the required approvals, as it has done in similar cases in the past. The report clarified that the order has not yet been received.”

Regarding the restriction on the use of US-made weapons in non-US systems, Elbit added, “The company estimates that this will not have a material negative impact.”

Published by Globes, Israel business news – en.globes.co.il – on December 23, 2025.

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