From 1 October 2025, the United States will extend for another year the suspension of its long-standing arms embargo on the Republic of Cyprus, according to the final regulation issued by the US Department of State and published in the Federal Register.
The amendment, which modifies Section 126.1 of the International Traffic in Arms Regulations (ITAR), stipulates that “Cyprus’s status as a prohibited destination is suspended from 1 October 2025 through 30 September 2026.”
This marks a continuation of the policy initiated in 2022, when, for the first time since 1987, the embargo was lifted following Congressional authorisation. The regulation confirms that “the suspension of the policy of denial for exports, re-exports, and transfers of defence articles and services to the Republic of Cyprus is extended for Fiscal Year 2026.”
The decision is grounded in two key legislative acts: the National Defense Authorization Act (NDAA) for Fiscal Year 2020 and the Eastern Mediterranean Security and Energy Partnership Act (EMSEPA) of 2019. These laws allow the US President to suspend the arms embargo provided that Cyprus continues to cooperate with the US on anti-money laundering and financial regulatory reforms and takes—and maintains—measures to deny Russian warships access to Cypriot ports for refuelling and servicing.
On 14 April 2020, the then-President delegated certification authority to the Secretary of State. On 7 July 2025, the Secretary formally certified to Congress that Cyprus meets all legislative conditions required for the embargo suspension, thereby approving its extension for the coming fiscal year.
The certification covers not only exports and re-exports but also temporary imports and brokering activities related to Cyprus. Licence applications and related approvals will continue to be reviewed on a case-by-case basis by the Directorate of Defense Trade Controls. Certain licensing exemptions will also remain in force, provided the relevant conditions are met.
The State Department noted that the decision falls under foreign and military affairs functions of the US government, exempting it from the usual public consultation requirements under the Administrative Procedure Act. It is also not subject to cost-benefit analysis under the Regulatory Flexibility Act or compliance actions under the Unfunded Mandates Reform Act of 1995, as it does not result in annual costs exceeding $100 million for governments or the private sector.
According to the Office of Information and Regulatory Affairs, the measure is not classified as “economically significant” under the Congressional Review Act, as it is not expected to raise costs, affect prices, or negatively impact competition, employment, productivity, or innovation.
The regulation is also not expected to have direct or substantial effects on US states or alter the balance of power between federal and local governments. As such, no specific federalism impact assessment is required.
The decision was reviewed in accordance with Executive Orders 12866 and 13563, which guide federal agencies to maximise net benefits when regulating. In this case, the regulation supports US policy to expand defence trade with Cyprus without imposing additional compliance burdens, and thus is expected to incur minimal costs.
It is further exempt from Executive Order 14192 as it pertains to foreign affairs functions. The State Department also reviewed the regulation under Executive Order 12988 to ensure legal clarity and reduce the potential for litigation.
Finally, it was confirmed that the rule has no impact on tribal governments and does not override tribal law, in line with Executive Order 13175. It also does not introduce or amend any information collection requirements under the Paperwork Reduction Act.
In conclusion, the rule, now part of Title 22 of the Code of Federal Regulations, clearly states that “from 1 October 2025 to 30 September 2026, the policy of denial and the prohibited destination status of Cyprus are suspended.”
The move reflects the continued deepening of US–Cyprus defence cooperation and underscores Nicosia’s sustained progress in implementing financial reforms and restricting Russian military access to Cypriot ports.