Nagorno-Karabkh - conflict unfreezing. OSW Commentary No. 65, 2011-10-26

The conflict between Armenia and Azerbaijan over Nagorno-Karabakh poses the greatest challenge to the security and stability of the Southern Caucasus. Although a ceasefire has been in place and a peace process under way since 1994, there is growing concern that the threat of the resumption of military action is growing. Proof of that is provided by, for example, the arms race dictated by Azerbaijan and its use of war rhetoric. A major factor, in addition to Azerbaijan’s increasing potential and ambitions, which is destabilising the situation concerning Karabakh seems to be the changing geopolitical situation in this region. Although the outbreak of a new war over Nagorno-Karabakh seems unlikely (as this would be risky to all the actors involved) within the next year, if the current trends continue, this will be difficult to avoid in the future. A further increase in the tension, and especially a military conflict (whatever its outcome), will lead to deep changes in the situation in the Southern Caucasus and in the policies of the countries which are active in this region