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ICG: Nagorno-Karabakh: Risking War

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  • ICG: Nagorno-Karabakh: Risking War

    NAGORNO-KARABAKH: RISKING WAR

    International Crisis Group
    http://www.crisisgroup.org/home/index.cfm?id =5157&l=2
    Nov 14 2007
    Belgium

    EXECUTIVE SUMMARY AND RECOMMENDATIONS

    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.

    In 2006 the co-chairs of the Minsk Group (France, Russia, the U.S.),
    authorised by the Organisation for Security and Cooperation in Europe
    (OSCE) to facilitate negotiations, proposed principles for settlement:
    renunciation of the use of force; Armenian withdrawal from parts
    of Azerbaijan surrounding Nagorno-Karabakh; an interim status for
    Nagorno-Karabakh, with substantial international aid, including
    peacekeepers; and mutual commitment to a vote on Nagorno-Karabakh's
    final status after the return of displaced Azeris.

    These principles, which were essentially identical to those proposed
    by Crisis Group a year earlier, still offer the best framework for a
    deal. Indeed, the sides have publicly said they generally agree with
    the concept but lack of political will to resolve the remaining key
    issues, especially the Lachin corridor, has undermined the process
    and turned stakeholder optimism into cynicism. None of the parties
    feels that there is any urgency to settle the conflict.

    Azeri and Armenian leaders have also 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 favour.

    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.

    RECOMMENDATIONS

    To the Governments of Armenia and Azerbaijan:

    1. Agree before the 2008 elections on a document of basic principles
    making provision for:

    (a) security guarantees and the deployment of international
    peacekeepers;

    (b) withdrawal of Armenian and Nagorno-Karabakh forces from all
    occupied territories adjacent to Nagorno-Karabakh, with special
    modalities for Kelbajar and Lachin;

    (c) return of displaced persons;

    (d) Nagorno-Karabakh's final status to be determined eventually by
    a vote, with an interim status to be settled on until that time; and

    (e) reopening of all transport and trade routes.

    2. Failing consensus on a comprehensive document, agree what can be
    agreed and clearly identify the points still in dispute.

    3. Encourage politicians to make positive references to peace and
    the need for compromise in their 2008 election campaigns.

    To the Governments of Armenia and Azerbaijan and the De Facto
    Nagorno-Karabakh Authorities:

    4. Respect the 1994 ceasefire, refrain from the use of force, halt
    the rise of defence budgets and cease belligerent and provocative
    rhetoric directed at the other.

    5. Promote track two diplomacy and debate about compromise solutions,
    including on the above principles, encourage parliaments to lead
    these debates and facilitate contacts between Azeris and Armenians.

    6. The de facto Nagorno-Karabakh authorities should end support for
    settlement of occupied territories with Armenians, including putting
    an end to privatisation, infrastructure development and establishment
    of local government structures in those areas;

    7. Azerbaijan should allow Karabakh Azeris to elect the head of
    their community and make a concerted effort to increase transparency
    and reduce corruption so that oil revenues are used to benefit all
    citizens, particularly internally displaced persons (IDPs).

    To the Minsk Group Co-Chairs (France, Russia, the U.S.) and the Wider
    International Community:

    8. Make a renewed effort to secure agreement on basic principles,
    with remaining points of disagreement clearly indicated, in order to
    maintain continuity in the process and to provide a starting point
    for negotiations between the presidents of Armenia and Azerbaijan
    after the 2008 elections.

    9. Raise the seniority of the co-chair representatives and make
    resolution of the Nagorno-Karabakh conflict a key element of bilateral
    and multilateral relations with Armenia and Azerbaijan.

    10. Make public more information on the substance of negotiations
    and avoid artificially fuelling expectations by overly optimistic
    statements.

    11. In the case of the European Union:

    (a) increase the role of the Special Representative for the South
    Caucasus (EUSR), who should observe the Minsk process, support direct
    contacts with all parties, travel to Nagorno-Karabakh, visit IDPs in
    Azerbaijan and, with the Commission, assess conflict-related funding
    needs; and

    (b) use European Neighbourhood Policy (ENP) reviews and funding to
    promote confidence building, as well as institution building and
    respect for human rights and the rule of law.
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