Against the backdrop of the Gaza war, the escalation of Iran and its proxies across the Middle East, and Russia’s war in Ukraine, the South Caucasus is quietly undergoing a profound transformation.
Armenia and Azerbaijan are slowly moving towards signing a peace treaty. If they do, this outcome would have profound implications for the South Caucasus and Russia, Europe, and Iran.
The conflict between Armenia and Azerbaijan is both ethnic and territorial and has spun for over thirty years. Specifically, the dispute is over Nagorno-Karabakh (or Artsakh as Armenians call it), internationally recognised as part of Azerbaijan, but until recently controlled by a breakaway separatist ethnic Armenian regime backed by the Armenian government.
This is the longest-running conflict in the post-Soviet space, one of several so-called “frozen conflicts” on Russia’s periphery.
In the last several years, observers periodically declared that a peace agreement between Baku and Yerevan was imminent but never materialised. However, there are several reasons why this time may be different.
Obstacles removed
First, a top obstacle to peace is now removed, albeit by military force. After years of diplomacy failed, in September 2023, Azerbaijan carried out a 24-hour offensive against Karabakh.
It led to the surrender of separatist leadership in Stepanakert and the removal of Armenian troops from Azerbaijan’s territory. The offensive led to a rapid and unforeseen exodus of ethnic Armenians from Karabakh. Still, Armenia’s relinquishment of Karabakh has always been a top prerequisite for peace.
Read more: South Caucasus at a crossroads between prosperity and further conflict
Second, both Armenian and Azerbaijani leadership have demonstrated a clear commitment to peace. In the past, such commitment was especially risky for Armenian leadership, which feared extremist forces in Armenia willing to use not only political pressure but also violence to prevent peace.
In December, Armenia and Azerbaijan showed a rare sign of goodwill by swapping prisoners and issuing a joint statement recognising the historic moment for achieving peace in the region.
Subsequent statements from senior officials provided more signs of such commitment. In the same month, Azerbaijan President Aliev's top foreign policy advisor, Hikmet Hajiyev, stated, "For Azerbaijan, there are no longer obstacles on the way to a peace agenda."
Both sides have exchanged several drafts of a peace treaty. Most recently, Aliyev and Pashinyan met on the margins of the Munich Security Conference in February this year, hosted by German Chancellor Olaf Scholz.
The Armenian foreign ministers followed up last Wednesday and Thursday in Berlin in a meeting hosted by German foreign minister Annalena Baerbock.
Another example is that Azerbaijan was chosen as the chair of the United Nations Climate Change Conference, COP 29, apparently due to its peace process with Armenia. Indeed, Armenia agreed in December 2023 to support Azerbaijan's COP hosting bid in exchange for membership in the Eastern European group's COP bureau.
In a recent op-ed, Mukhtar Babayev, Azerbaijan's minister for ecology and natural resources and the president-designate of COP29, directly credits peace efforts with Armenia for Azerbaijan's current position as COP chair.