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Azerbaijan Announces 53 Pct Rise In Army Spending

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  • Azerbaijan Announces 53 Pct Rise In Army Spending

    AZERBAIJAN ANNOUNCES 53 PCT RISE IN ARMY SPENDING

    Reuters
    April 15 2008

    BAKU, April 15 (Reuters) - Ex-Soviet Azerbaijan, in an armed
    standoff with neighbour Armenia, is to increase military spending by
    53 percent this year, state media quoted President Ilham Aliyev as
    saying on Tuesday.

    Azerbaijan fought a war in the 1990s with Armenia over the territory
    of Nagorno-Karabakh. The two countries have never signed a peace
    treaty and Azerbaijan has not ruled out using force to restore its
    control over Nagorno-Karabakh.

    "In the past 4-5 years the military and defence budget of the country
    has risen from $150 million to $1.3 billion. However Azerbaijan's
    state budget over this period has risen ten-fold," the Azerbaijan
    newspaper quoted Aliyev as saying.

    "I believe that in the context of an overall increase in government
    spending, defence spending should be increased from $1.3 billion to
    $2 billion in 2008. Azerbaijan has great military potential and must
    strengthen this," he said.

    Baku balanced its increased military spending with sustained supported
    for a diplomatic solution to the conflict.

    Azerbaijan's foreign minister Elmar Mammadyarov said on Tuesday
    that with the appointment of a new Armenian foreign minister, Eduard
    Nalbandyan, he would press for talks, but only on the basis that the
    dispute region remains part of Azerbaijan.

    "We can discuss the issue of autonomy for Nagorno-Karabakh only within
    Azerbaijan" Mammadyarov said.

    The International Crisis Group, a Brussels-based think tank, said
    in a report last year the fragile truce could be under threat, in
    part because Azerbaijan is using cash from energy exports to beef up
    its military.

    Azerbaijan reported gross domestic product growth in 2007 of 25
    percent, driven by revenues from the export of oil and gas. BP is a
    major investor in Azerbaijan's energy sector.

    Up to 16 people were killed last month in fighting between Azeri
    troops and Armenian forces along the heavily militarised ceasefire
    line that separates the two sides, the biggest loss of life in a
    single clash for several years. (Reporting by Lada Yevgrashina;
    Writing by Christian Lowe; Editing by Stephen Weeks)
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