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Blog / 12 Aug 2025

Azerbaijan-Armenia Peace Agreement

Context:

A historic peace agreement was signed between Azerbaijan and Armenia on August 8, 2025, at the White House, marking a significant breakthrough in the decades-long conflict between the two nations. The deal, brokered by US President Donald Trump, aims to bring lasting peace and stability to the region.

Key Provisions:

·        Permanent Cessation of Hostilities: Both countries have agreed to permanently cease all hostilities, paving the way for a peaceful resolution to the conflict.

·        Reopening of Transport Routes: The agreement includes the reopening of key transport routes between Armenia and Azerbaijan, promoting trade and economic cooperation.

·        Resumption of Travel, Business, and Diplomatic Relations: The two nations will resume travel, business, and diplomatic relations, strengthening their bilateral ties.

·        Trump Route for International Peace and Prosperity: The US will assist in building a major transit corridor, known as the "Trump Route for International Peace and Prosperity," connecting mainland Azerbaijan to its Nakhchivan exclave via Armenian territory.

Armenia and Azerbaijan end a 30-year conflict with a tense peace deal

Strategic Significance:

·        Enhanced US Geopolitical Influence: The agreement enhances US geopolitical influence in the Caucasus region, reducing Russia's dominance and promoting American interests.

·        Regional Connectivity: The Trump Route will facilitate the transportation of goods and people between Turkey, Azerbaijan, and Central Asia, bypassing Iran and Russia.

·        Economic Benefits: The corridor is expected to boost trade and economic cooperation between the two nations, promoting regional prosperity.

Historical Background:

  • Nagorno-Karabakh, a predominantly Armenian (Christian) enclave within Muslim-majority Azerbaijan, was an autonomous region during the Soviet era. As the USSR collapsed, ethnic tensions escalated, leading to the First Nagorno-Karabakh War (1988–1994).
  • Armenia took control of Nagorno-Karabakh and surrounding Azerbaijani areas. Although the region was governed by ethnic Armenians, it remained internationally recognized as part of Azerbaijan.

Recent Developments:

In the Second War (2020), Azerbaijan recaptured significant territory. In 2023, a swift one-day offensive led to Azerbaijan regaining full control of Nagorno-Karabakh, which was then officially dissolved. Over 100,000 ethnic Armenians fled to Armenia, marking a major humanitarian crisis.

India’s Position and Strategic Interest

India has remained neutral, supporting a peaceful resolution through the OSCE Minsk Group. Both Armenia and Azerbaijan are part of the International North-South Transport Corridor (INSTC), a vital route for India’s trade with Central Asia and beyond, making regional peace strategically important.

Challenges Ahead:

·        Implementation: The success of the agreement depends on its implementation and the willingness of both parties to work together.

·        Refugee Resettlement: The fate of displaced Armenians from Nagorno-Karabakh and prisoners of war remains a contentious issue.

·        Domestic Opposition: Both countries face domestic opposition, which could impact the agreement's stability.

Conclusion:

The Azerbaijan-Armenia peace agreement marks a significant step towards lasting peace and stability in the region. While challenges lie ahead, the agreement has the potential to promote economic cooperation, reduce tensions, and enhance regional connectivity.