Serbia has reportedly signed a major contract with Israeli weapons producer Elbit Systems, emphasising the emerging political alliance between the two countries.
On August 17, Israeli media reported that the Balkan country would acquire defence technology for $1.6 billion (€1.4 billion) over a five-year period.
The agreement comprises two groups of products. On the one hand, Serbia will buy long-range precision strike artillery-rocket systems as well as different unmanned reconnaissance and drones. On the other hand, the country is investing in ISTAR capabilities (intelligence, surveillance, target acquisition and reconnaissance), which will include night-vision equipment and electronic warfare systems.
The contract marked a major investment for Serbia. In 2023, the country’s total defence budget was around €1.4 billion according to the Belgrade Centre for Security Policy.
The agreement will also include industrial co-operation between Israel and Serbia, according to Elbit Systems.
Bezhalel Machlis, the president and CEO of the company, said in a statement: “This contract reflects the strong demand for Elbit Systems’ cutting-edge technologies in Europe and demonstrates our ability to deliver integrated, multi-domain solutions.”
He added: “We are proud to support a European nation in strengthening its national security through this strategic partnership. This contract also includes industrial cooperation aimed to strengthen the buyer’s national industrial capabilities in the mentioned areas.”
Serbia had already signed a deal to procure artillery systems and drones from Elbit for $335 million (€286.9 million) in January 2025.
Defence analyst Aleksandar Radić said the deals with Elbit had a political background as the Israeli Government under President Binyamin Netanyahu was a strong supporter of Serbian President Aleksandar Vučić.
“The truth is that that Vučić is actually buying the favour of relevant foreign powers,” Radić told Serbian TV station N1.
The military analyst added that Vučić had made a strong strategic shift towards the US and Israel in recent months and that the size of the new contract might arise great interest in Serbia’s neighbouring countries – “and a dose of jealousy given how many weapons are being purchased”.
Elbit System is Israel’s biggest weapons manufacturer with revenues of $5.5 billion (€4.71 billion) in 2023 and about 20,000 employees.
