Washington: The United States has officially extended the suspension of its arms embargo on the Republic of Cyprus for an additional year, starting from October 1, 2025. This decision, outlined in a final rule by the U.S. Department of State and published in the Federal Register, amends section 126.1 of the International Traffic in Arms Regulations (ITAR) to reflect the suspension of the policy of denial concerning Cyprus as a proscribed destination, effective through September 30, 2026.
According to Cyprus News Agency, the extension signifies a continued deepening of defense cooperation between the U.S. and Cyprus, marking Washington’s recognition of Cyprus’ progress in implementing reforms on anti-money laundering regulations and financial regulatory oversight. Cyprus’ efforts to deny Russian military vessels access to its ports for refueling and servicing have also been acknowledged as part of this cooperative progress.
This policy continuation traces back to 2022, when the longstanding embargo was initially lifted following legislation enacted by Congress. The rule states that the suspension for exports, reexports, and transfers of defense articles and services to Cyprus is renewed for fiscal year 2026.
The suspension relies on two legislative acts: Section 1250A(d) of the National Defense Authorization Act for Fiscal Year 2020 and Section 205(d) of the Eastern Mediterranean Security and Energy Partnership Act of 2019. Both acts require that the U.S. policy of denial remains unless the President certifies Cyprus’ cooperation with the U.S. on anti-money laundering reforms and Russian naval access restrictions.
On April 14, 2020, the U.S. President delegated the certification authority to the Secretary of State, who, on July 7, 2025, certified Cyprus’ compliance with the statutory requirements to the relevant congressional committees, thereby approving the embargo suspension for fiscal year 2026.
The certification covers exports, reexports, retransfers, and temporary imports related to Cyprus, with license applications reviewed on a case-by-case basis by the Directorate of Defense Trade Controls. Certain licensing exemptions remain available provided specific conditions are satisfied.
The State Department clarified that this regulatory action is related to U.S. military and foreign affairs functions and was published with an effective date without soliciting public comment. It is exempt from the Regulatory Flexibility Act and the Unfunded Mandates Reform Act of 1995, as it does not impose significant expenditure mandates.
The Office of Information and Regulatory Affairs assessed the rule as not major under 5 U.S.C. 804, indicating no increase in costs or adverse market effects. It also determined that the rule does not have substantial direct effects on states or alter federal power distribution, negating the need for a federalism impact statement under Executive Order 13132.
In compliance with Executive Orders 12866 and 13563, the Department assessed minimal costs associated with expanding defense trade policies without additional regulatory burdens. The rule is exempt from Executive Order 14192 due to its foreign affairs nature and complies with Executive Order 12988 to reduce legal ambiguity and litigation risk.
The rule does not impact tribal governments or laws under Executive Order 13175 and does not revise information collections per the Paperwork Reduction Act.
The regulation incorporated into Title 22 of the Code of Federal Regulations confirms that the policy of denial and Cyprus’ status as a proscribed destination is suspended from October 1, 2025, to September 30, 2026.