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Significance

This is the most significant upgrade in US-Cyprus relations since the ban was imposed in 1987, and marks a definitive shift for Cyprus from Russia to the West. However, the development has also sparked a reaction from Turkey.

Impacts

Cyprus's National Guard will gradually phase out Russian-made weapon systems and benefit from the opportunity to upgrade its capabilities.

As Cyprus draws further away from Russia, it may move closer to China lest it alienate a second permanent UN Security Council member.

Though Russian companies are closing in Limassol, an influx of Ukrainian refugees has pushed up demand for housing and rents.

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