The embargo was directed only at the Greek Cypriot part and aimed to avoid an arms race on the island and facilitate UN-backed efforts to reunite it.
Garber said through such policy moves, the United States was continuing its calls on Cyprus to implement anti-money-laundering regulations and take steps toward denying "Russian military vessels access to ports for refueling and servicing", though it waived an outright ban on such actions.
Oktay said Wednesday that Turkey and the Turkish Cypriot state are "aware of the games that are being played against them".
Meanwhile, top officials of the Turkish Republic of Northern Cyprus (TRNC) also slammed USA arms embargo decision.
Following the forcible 1963 division of the island of Cyprus by the Greek Cypriots, the Turkish Cypriots suffered under a campaign of ethnic violence.
Cyprus split in 1974 when Turkey invaded following a coup by supporters of union with Greece. Between 35,000 to 40,000 Turkish troops remain stationed in the Turkish Republic of Northern Cyprus (TRNC), which is exclusively recognized by Ankara.
Turkey's Foreign Ministry said the US decision harms efforts to reunify Cyprus, "poisons" regional stability and goes against the "spirit of alliance" between the USA and Turkey.
The waiver, announced by Secretary of State Mike Pompeo to President Nicos Anastasiades on Tuesday evening will come into effect on October 1, "and will be reviewed on an annual basis", the ambassador told reporters at a USA embassy briefing in Nicosia. Warships from the two North Atlantic Treaty Organisation allies have been shadowing each other in recent weeks as Turkish survey vessels and drill ships continue to prospect for hydrocarbons in waters where Greece and Cyprus claim exclusive economic rights. "We've been working on this for an awfully long time".
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"I welcome @Pontifex statement on the Eastern Mediterranean". Ankara is also carrying out military exercises in the Eastern Mediterranean, off Iskenderun on the southern coast of Turkey.
France and Germany have tried to defuse the situation, while Greek prime minister Kyriakos Mitsotakis held two calls with President Donald Trump on the subject.
Turkish President Recep Tayyip accused European nations of using Greece as "bait" in the Mediterranean Sea confrontation while belittling Athens' military might on Tuesday.
The developments come as tensions in the region are already running high.
U.S. Ambassador to Cyprus Judith Garber said the lifting of the embargo strengthens the U.S. -Cyprus security partnership while boosting regional security.
The decision announced earlier in the day ignores the equality and balance between the two peoples on the island, said a Turkish Foreign Ministry statement.
"In the face of clear and present ballistic threats, emanating from our immediate neighborhood, Turkey made the sovereign decision to procure S-400 systems in the unfortunate absence of other alternatives from our allies including the U.S." the vice president reiterated.