November 14, 2007 - 15:36 AMT
ICG: status quo can provoke war in Karabakh
Azerbaijan and Armenia should halt their dangerous arms race and restrain their belligerent rhetoric and instead renew efforts to find a negotiated settlement for the Nagorno Karabakh region, says a report issued by the International Crisis Group.

Nagorno Karabakh: Risking War, the latest report from the International Crisis Group, examines the dangers of ignoring the conflict both for the region and for the wider international community.

"Armenia and Azerbaijan have failed to resolve the Nagorno-Karabakh conflict, even though the framework for a fair settlement has been on the table since 2005. A comprehensive peace agreement before presidential elections in both countries in 2008 is now unlikely but the two sides still can and should agree before the polls to a document on basic principles, which if necessary clearly indicates the points that are still in dispute. Without at least such an agreement and while they engage in a dangerous arms race and belligerent rhetoric, there is a risk of increasing ceasefire violations in the next few years. By about 2012, after which its oil revenue is expected to begin to decline, Azerbaijan may be tempted to seek a military solution. The international community needs to lose its complacency and do more to encourage the leaderships to prepare their societies for compromise and peace," he report says.

"Azeri and Armenian leaders have failed to engage their constituents in discussion of the merits of peace. The European Union (EU), the U.S. and Russia have not effectively employed political and economic pressure for a settlement. The anticipated focus on domestic politics in Yerevan and Baku as well as several of the Minsk Group countries in 2008 means that even the incremental diplomatic progress that has been made could well be lost."

"Oil money has given Azerbaijan new self-confidence and the means to upgrade its armed forces. It seems to want to postpone any peace deal until the military balance has shifted decisively in its favor. Yerevan, which itself has done surprisingly well economically, has also become more intransigent and increased its own military expenditures. It believes that time is on its side, that Nagorno Karabakh's de facto independence will become a reality increasingly difficult to ignore. Playing for time is dangerous for all concerned, however. The riskiest period could be around 2012, when Azerbaijan's oil money is likely to begin to dwindle, and a military adventure might seem a tempting way to distract citizens from economic crisis. Important oil and gas pipelines near Nagorno Karabakh would likely be among the first casualties of a new war, something Europe and the U.S. in particular have an interest in avoiding."

"The wider international community, not just Minsk Group co-chairs, should coordinate efforts to impress on Baku and Yerevan the need for progress, specifically early agreement on a basic principles document. Nagorno-Karabakh needs to be put at the centre of relations with both countries. The EU special representative in the region should become more active on the issue, and the EU should use the first reviews of its action plans with both countries to promote conflict resolution and the development of transparent, credible institutions which can underpin peace efforts. Engagement is needed now to avoid the danger of war in a few years," it reads.

"The international community needs to take the threat of war seriously," says Magdalena Frichova, Crisis Group Caucasus Project Director. "The risk of armed conflict is growing, and the dangers of complacency enormous."

"The international community needs to pressure hard for peace," says Sabine Freizer, Crisis Group's Europe Program Director. "Conditionality should be used with financial aid instruments, and active diplomacy should focus both sides on the costs of continued stalemate and confrontation, which far outweigh those of an early compromise."