Intensive talks between Armenia, Azerbaijan and OSCE Minsk Group mediators on sidelines of Athens OSCE Ministerial Council 1-2 Dec produced statement reaffirming commitment to resolve remaining issues in N-K conflict. Both sides maintained opposing public interpretations of proposed settlement: Azerbaijan insisted on retaining sovereignty over N-K through self-rule arrangement, Armenia demanded N-K vote on independence, reunification or return to Azerbaijan. Azerbaijani parliament 15 Dec adopted appeal calling for U.S. president Obama to veto 9 Dec U.S. Congress decision to provide $8m in aid to N-K, claiming it violates Azerbaijan’s sovereignty, may damage N-K settlement talks.

Azerbaijani President Aliyev and Armenian president Sarkisian 22 Nov met under auspices of OSCE Minsk Group in Munich, reported “important progress”. French co-chair, Armenian, Azerbaijani FMs 23 Nov commended constructive nature of discussions. Prior to meeting, Aliyev had threatened to reclaim N-K by force if talks failed to produce diplomatic solution.

Positive comments from Azerbaijan 3 Sept regarding progress in resolution of N-K conflict; senior presidential aide said there could be movement in resolving dispute before Turkey-Armenia border opened. 5 Armenian soldiers killed in clash with Azerbaijani forces near N-K 10 Sept. Azerbaijani athletes participated in sporting event in Armenia for first time since fall of Soviet Union. Turkish PM Erdogan at UNGA 22 Sept urged international mediators to speed up efforts to resolve N-K dispute (see Armenia/ Turkey).

Russian-led Collective Security Treaty Organization (CSTO) 7 Aug said would support member Armenia in event of an Azerbaijan attack over Nagorno-Karabakh. Azerbaijani presidential aide 15 Aug said Azerbaijan would prefer U.S., EU peacekeepers in case of peace agreement with Armenia, hinting opposition to Russian peacekeepers. Azerbaijan’s hardline Karabakh Liberation Organization 12 Aug called for rejection of Madrid Principles for resolution of conflict, said agreeing to them is “treason against national interests”.

Armenian, Azerbaijani presidents met with OSCE Minsk Group chairs 8, 10 July. Met in Moscow for further talks 17 July, and with Russian President Medvedev next day. Followed 3-4 July visit led by Armenian, Azerbaijan ambassadors to Russia to N-K, Armenia, Azerbaijan. French, Russian, U.S. presidents released statement 10 July calling on both countries to endorse revised Madrid Principles for resolving conflict. Minsk group chairs met late-month to update Madrid Principles.

Azerbaijani and Armenian presidents met in St. Petersburg 4 June, 5th such meeting in past year. Both sides reported progress, OSCE Minsk Group said meeting constructive. N-K Azerbaijani congress elected Bayram Safarov as new leader.

Azerbaijan and Armenian presidents met in sidelines of EU Eastern Partnership summit in Prague 7 May; OSCE Minsk Group co-chair Bryza reported “most substantive exchange of views between the presidents so far”, differences on basic principles reduced. Azerbaijani presidential adviser 11 May denied progress, criticised Minsk Group co-chairs.

Hopes of progress on resolving NK conflict in coming months following several visits by OSCE Minsk Group co-chairs to region, positive statements, and ahead of anticipated meetings between Armenian, Azerbaijani presidents in sidelines of 7 May Prague EU summit. Both presidents conducted separate Moscow visits during month to discuss conflict with President Medvedev.

OSCE Minsk Group co-chairs in region 27 Feb-3 March in bid to organise meeting between Armenian, Azerbaijani presidents to discuss Minsk Group proposals. Co-chairs 6 March condemned 26 Feb ceasefire violations occuring during OSCE monitoring mission. French co-chair Fassier in Yerevan 3 March said both Armenian and Azeri communities of NK should join negotiation process ‘at some point’. 28 Feb defection of 3 Armenian soldiers serving in Nagorno-Karabakh to Azerbaijani side prompted debate in Armenia over harsh army conditions.