By Erik Davtyan (08/14/2014 issue of the CACI Analyst)

On August 10, a trilateral meeting took place between the presidents of Russia, Armenia and Azerbaijan. After the Kazan meeting in 2011, this was the first such meeting hosted by a Russian president. On August 8, Presidents Sargsyan and Aliyev had both paid a working visit to Sochi in order to discuss a wide range of issues, concerning Armenian-Russian and Azerbaijani-Russian relations respectively. Since both parties had expressed their willingness to hold a trilateral meeting, their official visits to Sochi presented a good opportunity for the dialogue between Armenia and Azerbaijan. The last meeting of the two presidents took place on November 19, 2013, in Vienna and was conducted with the participation of the Co-Chairs of the OSCE Minsk Group and the Personal Representative of the OSCE Chairman-in-Office Andrzej Kasprzyk.

The meeting focused on the situation in Nagorno-Karabakh, as well as the recent clashes on the Armenian-Azerbaijani border and the line of contact. While the working visit also pursued some other important issues (e.g. Armenian-Russian relations), the concerns among Armenia’s population over the events on the borderline and the possibility of a state-level discussion of that situation became the main point of interest during the trilateral meeting. Many Armenians attached great importance to the Sochi meeting due to the tense situation on the line of contact, which has since early August caused the deaths of over 20 soldiers. The recent skirmishes were the bloodiest fighting in two decades, and the proceedings at Sochi were therefore followed closely in Armenia.

In the first week of August, the developing situation on the frontline raised concerns among the Armenian public, fearing a possible escalation of the conflict. While clashes on the line of contact have occurred from time to time in past years, the massive breach of the cease-fire for a relatively long period of time, and the everyday news on the tense situation triggered perceptions that a return to large-scale military operations could be imminent. The death of 18 20-year-old soldiers in a week raised deep concerns among almost all Armenians, in Armenia as well as in the diaspora.

On August 7, President Aliyev’s military rhetoric on Twitter raised additional concerns in Armenia. Aliyev stated that Azerbaijanis “have beaten the Armenians on the political and economic fronts,” hence they “are able to defeat them on the battlefield.” These statements, which were actually made on the level of president, where received with a deep anger among Armenia’s population.

Both the borderline situation and Aliyev’s statements received reactions from Armenia’s Ministry of Foreign Affairs and were widely covered in Armenian mass media. Moreover, the international reactions to the events served to further underline the seriousness of the situation. The U.S. Department of State and the Russian Ministry of Foreign Affairs both expressed their stances towards the situation on the line of contact, which was one of the rare cases when the co-chairing states expressed their opinion not on the level of co-chairs, but foreign offices.

Russia’s mediation attempt was largely in line with the expectations of the Armenian public. Hence, most Armenians welcomed the chance for a meeting between the Armenian and Azerbaijani presidents. Despite the fact that Armenian society has an ambiguous attitude towards Russia and its relationship with Armenia, there was a relative unanimity towards the necessity of the Sochi meeting. Russia is considered to be Armenia’s strategic partner, and to secure part of Armenia’s state borders. Besides, Russia is one of the three members of the OSCE Minsk Group, as well as Armenia’s most significant arms supplier.

As the working visits of the Armenian and Azerbaijani presidents started on August 8, some Armenian experts are inclined to link that circumstance with the 6th anniversary of the August war between Russia and Georgia, thereby implying that there is an indirect message to Georgia’s neighboring states, Armenia and Azerbaijan. Nevertheless, the Sochi meeting drew the attention of Armenia’s population primarily due to its consequences for the acute situation on the frontline, rather than the prospects for approaching solutions to the Nagorno-Karabakh conflict itself. Therefore, this meeting, followed by a 10-month pause, largely satisfied the expectations of the Armenian public.

By Armen Grigoryan (08/14/2014 issue of the CACI Analyst)

After the recent clashes between Armenian and Azerbaijani forces, Russia’s leadership attempts to act more decisively in order to compromise the OSCE Minsk Group mediation efforts and to compel Armenia and Azerbaijan to accept Russia’s special role in the region. Russia’s proximity and strong influence over political elites and societies gives it an advantage over other Minsk Group co-chairs – the U.S. and France. However, the lack of security guarantees and economic perspectives may induce Armenia to start reviewing its attitudes concerning relations with different international actors and regional integration frameworks.

By Mina Muradova (07/02/2014 issue of the CACI Analyst)

The ongoing crisis in Ukraine has pushed several post-Soviet countries to decide whether they are primarily oriented toward the West or Russia. On June 27, Azerbaijan’s neighbor Georgia, along with Ukraine and Moldova, signed landmark partnership agreements with the European Union, which establish closer economic ties between these economically weak states and the EU. They obligate the countries to observe EU regulations governing customs, exports, and economic competition, and will allow them access to European markets.

At the same time, Azerbaijan’s other neighbor, Armenia, has committed to joining the Russia-dominated Eurasian Economic Union (EEU). Russia, Kazakhstan and Belarus signed an agreement on the establishment of the EEU in Astana on May 29. The summit was also attended by Armenian President Serzh Sargsyan, who nevertheless did not sign the agreement but asked for additional time.

Yet Baku has stuck to a pragmatic approach and has publicly rejected the Kremlin’s invitation to join the EEU, while being in no apparent hurry to enter any other agreement. Azerbaijan’s broader foreign policy of regional balance, favoring Euro-Atlantic integration while at the same time seeking to maintain good relations with Russia, allow Baku to reap benefits from all possible partnerships.

In June 2014, Russian ministers and high-level officials visited Azerbaijan to persuade Baku to enter closer cooperation with Moscow. Russia’s Economy Minister Alexei Ulyukayev visited Baku in early June to discuss economic cooperation and invite Azerbaijan to join the EEU. Russia’s Foreign Minister Sergei Lavrov then arrived on June 18-19 for a continuation of what he described as “a most active dialogue.” In addition, Azerbaijan hosted visits by Russia’s Deputy Prime Minister Dmitry Rogozin, Duma Speaker Sergei Naryshkin, and Development Minister Igor Slyunayev.

“Azerbaijan is our strategic partner … Our cooperation is being actively developed not only in a two-side format, but also in multi-side directions, including issues of stability and security in the Southern Caucasus and Caspian region,” Lavrov said at a news conference in Baku on June 18. The two sides discussed the situation in Ukraine, and Lavrov said that Azerbaijan has not been formally invited to join either the Customs Union or the EEU, but added that Moscow would welcome any partner interested in collaboration with those organizations.

Baku has indicated that it has no plans to join those blocs. “Azerbaijan yet has no intentions and doesn’t think about joining the Eurasian Union,” the Deputy Head (and Director of the Foreign Relations Department) of Azerbaijan’s Presidential Administration, Novruz Mammadov, told reporters on June 11.

According to Lavrov, the frozen conflict in Nagorno-Karabakh will not affect the Eurasian integration processes: “it is a subject of other international negotiations.” Kazakhstan’s President Nursultan Nazarbayev previously remarked that “the treaty with Yerevan must have a special provision about Armenia’s internationally recognized borders that do not encompass Nagorno-Karabakh.”

Commenting on Armenia’s accession to the Eurasian Union, Mammadov stressed that Azerbaijan has no reason to express any concern on this issue. Referring to an appeal from Baku to the presidents of Russia, Kazakhstan and Belorussia, that Armenia can join any organization under the same conditions as outlined in the treaty with the World Trade Organization, meaning within its internationally-recognized borders, Mammadov stressed that “this is our demand and it will be fulfilled.” Yet it is still unclear how this will be controlled.

Armenia’s ruling party insists that Karabakh will not join the EEU de jure, but Gagik Minasyan, the head of the committee on financial and budgetary affairs at the Armenian parliament, said that Armenia’s membership in the EEU will open new economic opportunities for Nagorno-Karabakh. Minasyan stressed that “Armenia and Nagorno-Karabakh are a single economic area and there can be no customs point between them.”

It appears that Azerbaijan’s refusal to join the EEU will not prevent continued arms sales from Russia. Dmitry Rogozin, who is overseeing the Russian defense industry and heading the Azerbaijan-Russia intergovernmental commission for cooperation also visited Baku in June.

According to the Atlas Analytical Research Centre, “The arms deals are beneficial for both Moscow and Baku. Moscow will get more money from arms sales and will keep Azerbaijan as a traditional market for Russian arms, while Baku will keep a strategic partnership on a high level and insure itself from serious problems with its Northern neighbor.” According to Atlas, Russian weapons sales makes up 80 percent of all Azerbaijan’s arms deals, which totaled about US$ 4 billion in the last four years and has included the transfer of many advanced systems to Azerbaijan.

In addition, Azerbaijan is willing to enhance its economic and humanitarian cooperation with Russia. Eleven commercial agreements were signed at a big Azerbaijan-Russia economic forum held in Gabala, with the participation of over 200 representatives from 25 regions of the Russian Federation. The sides discussed the expansion of transit traffic for all types of transport and agreed to ease border crossing procedures, particularly for automobile traffic.

Andrey Kazantsev, Director of the Analytical Center at the Moscow State Institute of International Relations, noted that the visits of Moscow’s emissaries to Baku constitute an attempt to maintain Russia’s sphere of influence in post-Soviet countries: “the competition for influence in post-Soviet countries has increased. While some of them have already determined who they are going to be with, there are still countries which continue to keep multi-direction policies and here either Russia or the West increases their efforts to attract them.”

According to Kazantsev, the U.S. is seeking to isolate Russia diplomatically due to its position on the Ukrainian crisis, and Russia is in turn trying to counteract these moves through the post-Soviet countries. Another key reason for Moscow’s activities is to brief Baku regarding Armenia’s accession to the EEU to avoid harming its strategic partnership with Azerbaijan, which is justified by arms sales and other economic agreements.

By Dmitry Shlapentokh (06/18/2014 issue of the CACI Analyst)

Alexander Dugin, the well-known Russian conservative public intellectual and publicist, stated in April 2014 that if Baku would proceed with its anti-Russian policy, Moscow would not be able to guarantee the country’s territorial integrity. The implication is that Moscow would increase its support for Armenia and Azerbaijan would never be able to regain control over Nagorno–Karabakh, which remains Baku’s major foreign policy priority. While Dugin does not hold any official position, he has frequently functioned as an informal spokesman for some segments of the Russian elite and for this reason his views should be taken into account. They reflect Moscow’s displeasure with Baku due to Azerbaijan’s attempts to provide alternative gas routes to Europe.

By Stephen Blank (06/18/2014 issue of the CACI Analyst)

Presumably to fend off mounting criticism of U.S. policy, Ambassador James Warlick, the U.S. Representative to the Minsk Process on Nagorno-Karabakh, recently gave a series of speeches and interviews outlining U.S. policy on the Nagorno- Karabakh conflict. Warlick outlined U.S. support for the six principles that he said had already been agreed upon by all parties, and concluded that the main obstacle to resolving the conflict lay in the failure until now of the Armenian and Azerbaijani governments to make the hard decision for peace over domestic opposition. Warlick’s remarks reflect the Obama Administration’s failure to grasp what is at stake in the Caucasus or to take conflict resolution there sufficiently seriously.