US lifts defense trade restrictions on Republic of Cyprus for fiscal year 2023.

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On September 16, US Secretary of State Antony Blinken completely lifted the arms embargo on Cyprus, which was greeted by Nicos Anastasiades, the Cypriot president (Picture source: Twitter account of Cyprus Ministry of Defense)

On September 16, US Secretary of State Antony Blinken completely lifted the arms embargo on Cyprus, which was greeted by Nicos Anastasiades, the Cypriot president. “This is a historic decision, which reflects the growing strategic relationship between the two countries, including in the field of security,” he commented, via social networks.

U.S. State Department spokesman Ned Price said the international traffic in arms regulations will be amended to reflect the new policy effective October 1. Cyprus President Nicos Anastasiades hailed the announcement through Twitter.

Turkey’s foreign ministry said on September 17 it strongly condemned the expansion of a decision taken by the United States in September 2020 to lift its arms embargo on Cyprus. As reported by Greek Reporter, the Turkish foreign ministry said this decision would “further strengthen the Greek Cypriot side’s intransigence and negatively affect efforts to resettle the Cyprus issue. It will lead to an arms race on the Island, harming peace and stability in the eastern Mediterranean,” the statement said, calling on the United States to reconsider its decision and to pursue a balanced policy towards the two sides on the island.

US policy requires the denial of exports, re-exports or transfers of defense articles to Cyprus unless the president determines and certifies to congressional committees authorities there are cooperating with Washington to implement anti-money laundering regulations and financial regulatory oversight reforms. It also requires Cyprus to take steps to deny Russian military vessels access to ports for refueling and servicing. Cyprus has now fulfilled all the requirements of the Eastern Mediterranean Security and Energy Partnership Act of 2019 passed by the US Congress following a proposal by US Senators Bob Menendez and Marco Rubio.

The legislation led the US to partially lift its arms embargo against Cyprus in 2020 to allow for “non-lethal” military goods to be sold to the Republic, including military training programs. In return, Cyprus was to refuse Russian military vessels docking in ports in the government-controlled areas among other stipulations.

The U.S. law namely requires a report from the Departments of State, Defense and Energy on Turkish violations in the Aegean and the eastern Mediterranean. Specifically, the report will examine Turkey’s encroachment on Cyprus’s Exclusive Economic Zone and violations of Greek airspace.

The presence of large natural gas reserves in the exclusive economic zone of Cyprus is giving rise to new tensions with Turkey. Tensions likely to destabilize the eastern Mediterranean.

Official statement by the U.S. Department of State issued by Ned Price, Department spokesperson

Secretary of State Antony J. Blinken determined and certified to Congress that the Republic of Cyprus has met the necessary conditions under relevant legislation to allow the approval of exports, re-exports, and transfers of defense articles to the Republic of Cyprus for fiscal year 2023. Compliance with the conditions is assessed on an annual basis. As a result of this determination and certification, the Secretary lifted the defense trade restrictions for the Republic of Cyprus for fiscal year 2023. The International Traffic in Arms Regulations will be amended to reflect the new policy, effective October 1, 2022.

The Eastern Mediterranean Security and Energy Partnership Act of 2019 and the National Defense Authorization Act for FY 2020 require that the policy of denial for exports, re-exports, or transfers of defense articles on the United States Munitions List to the Republic of Cyprus remain in place unless the President determines and certifies to the appropriate congressional committees not less than annually 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. In accordance with both Acts, the Department reviews compliance with the Acts annually.