The United States formally extends for another year the suspension of its arms embargo on Cyprus, effective as from October 1, 2025, according to a final rule issued by the U.S. Department of State and published in the Federal Register.
The amendment to section 126.1 of the International Traffic in Arms Regulations (ITAR) specifies that “the policy of denial and the status of Cyprus as a proscribed destination is suspended from October 1, 2025, through September 30, 2026.”
The decision underscores the ongoing deepening of U.S.–Cyprus defense cooperation and reflects Washington’s acknowledgment of Cyprus’ continued progress “in efforts to implement reforms on anti-money laundering regulations and financial regulatory oversight” and “to deny Russian military vessels access to ports for refueling and servicing.”
The decision continues the policy first adopted in 2022, when the decades-long embargo was initially lifted pursuant to relevant legislation enacted by Congress. As stated in the rule, “the suspension of the policy of denial for exports, reexports, and transfers of defense articles and defense services to the Republic of Cyprus is extended for fiscal year 2026.”
The continued suspension is based on two pieces of legislation: Section 1250A(d) of the National Defense Authorization Act for Fiscal Year 2020 (NDAA 2020) and Section 205(d) of the Eastern Mediterranean Security and Energy Partnership Act of 2019 (EMSEPA). Both provide that the U.S. policy of denial toward Cyprus shall remain in effect unless the President determines and certifies to Congress that “the Government of the Republic of Cyprus is continuing to cooperate with the United States Government in efforts to implement reforms on anti-money laundering regulations and financial regulatory oversight” and that “the Government of the Republic of Cyprus has made and is continuing to take the steps necessary to deny Russian military vessels access to ports for refueling and servicing.”
On April 14, 2020, the US President delegated these certification authorities to the Secretary of State. Acting under that delegation, “on July 7, 2025, the Secretary of State certified to the appropriate congressional committees that the Republic of Cyprus meets the statutory requirements” and approved the suspension of the policy of denial for fiscal year 2026.
The certification applies not only to exports and reexports but also to “retransfers and temporary imports destined for or originating in the Republic of Cyprus and brokering activities involving the Republic of Cyprus.” License applications and other authorizations related to Cyprus will continue to be “reviewed on a case-by-case basis” by the Directorate of Defense Trade Controls. Certain licensing exemptions “remain available for exports, reexports, retransfers, and temporary imports destined for or originating in the Republic of Cyprus… provided the conditions for use of those exemptions are met.”
The Department of State clarified that this regulatory action “involves a military or foreign affairs function of the United States” under 5 U.S.C. 553(a), and therefore was published “with a specified effective date and without a request for public comment.” It is also exempt from the Regulatory Flexibility Act and the Unfunded Mandates Reform Act of 1995, as it “does not involve a mandate that will result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any year.”
The Office of Information and Regulatory Affairs determined that the rule “is not a major rule under the criteria of 5 U.S.C. 804,” as it “will not increase costs or prices and should have no adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises in domestic and export markets.”
Similarly, the rule “will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government,” and therefore does not require a federalism impact statement under Executive Order 13132.
In accordance with Executive Orders 12866 and 13563, which require agencies to assess the costs and benefits of regulatory actions, the Department stated that “because the scope of this rule implements a governmental policy expanding defense trade with a country, and does not impose additional regulatory requirements or obligations, the Department believes costs associated with this rule will be minimal.”
The rule is exempt from Executive Order 14192 because it “relates to a foreign affairs function of the United States.” The Department further reviewed it “in light of Executive Order 12988 to eliminate ambiguity, minimize litigation, establish clear legal standards, and reduce burden.”
It also determined that the rule “will not have tribal implications, will not impose substantial direct compliance costs on Indian tribal governments, and will not preempt tribal law,” and therefore Executive Order 13175 does not apply. Finally, the rule “does not impose or revise any information collections” under the Paperwork Reduction Act.
In conclusion, the amended regulation incorporated into Title 22 of the Code of Federal Regulations formally states that “from October 1, 2025, through September 30, 2026, the policy of denial and the status of Cyprus as a proscribed destination is suspended.”
( Source: CNA)
