OSCE 5 Feb optimistic on possibility of resolution of confl in 2009. Azeri President Aliyev 14 Feb said NK status could be determined only after Armenian withdrawal from 7 occupied districts. 2 Azeri soldiers killed by landmine 20 Feb, another killed in 21- 22 Feb ceasefire violations.

Following meetings with OSCE Minsk Group, Armenian and Azeri Presidents met in Zurich 28 Jan to discuss ways to resolve conflict. Group’s U.S. co-chair Bryza said mediators hope framework peace deal to be signed by summer; Armenian FM Nalbandian 21 Jan said agreement contingent on popular support. Azerbaijan 16 Jan expressed concern over alleged 2008 Russian arms delivery to Armenia, reported by Azeri media but denied by Russia, Armenia; Azerbaijan accused Russia of breaching UN resolutions and its commitment to Azerbaijan. Azeri soldier killed 16 Jan following ceasefire violation; 3 Armenian soldiers killed 26 Jan in alleged attack on Azeri positions.

Minsk Group co-chairs 4 Dec urged Armenia, Azerbaijan to finalise “comprehensive agreement” in coming months; called for withdrawal of snipers from border. 1 Azeri soldier killed, 1 wounded in 26 Dec ceasefire violation.

2 Nov talks in Moscow between Azeri, Armenian and Russian presidents resulted in first joint declaration since 1994 ceasefire but no detailed agreement reached – parties pledged non-use of force, observance of international law, confidence-building measures; affirmed commitment to OSCE Minsk Group- proposed “Madrid principles”. U.S. Minsk Group co-chairs in 13-17 Nov visit said sides far from agreement – first joint visit to region since Aug when activities were suspended over Georgia crisis.

Renewed negotiation with Russian President Medvedev’s 21 Oct offer to host fresh peace talks 2 Nov in Moscow. Visiting Yerevan 3 Oct, Russian FM Sergey Lavrov said “very real chance” for resolving conflict if agreement reached on remaining “two or three” issues. Armenian forces 8 Oct reportedly captured Azerbaijani soldier.

Increased engagement outside OSCE Minsk Group negotiation forum, with Turkish FM Babacan in joint meeting with Armenian, Azeri FMs on UNGA sidelines 26 Sept; Russian President Medvedev in separate meetings with Armenian, Azeri presidents. Baku hinted at possible inclusion of Armenia in Nabucco pipeline project if Yerevan modifies demands for independence of enclave.

Armenian, Azeri FMs held Russian-brokered closed-door talks 1 Aug in Moscow; no agreement on “Madrid principles” reached. Azerbaijan 4 Aug returned 4 prisoners detained in April; Armenia 14 Aug freed 1 prisoner held since Feb.

OSCE Minsk Group co-chairs visited Baku, Yerevan 27-28 July to discuss Nov 2007 Madrid proposals. Armenia, Azerbaijan presidents to discuss proposals 1 Aug in Moscow. Armenian serviceman reportedly killed 19 July in attempt to cross border in Tovuz region.

Azerbaijan President Aliyev and Armenia President Sarkisian 6 June met at St. Petersburg CIS summit, agreed to continue talks based on OSCE Minsk Group Madrid proposals. 2 civilians killed by sniper near border 18 June; Baku 22 June accused Yerevan of ceasefire violation.

Azeri Deputy FM 14 May announced 8 negotiation principles requiring resolution of NK status within territorial integrity of Azerbaijan and prior refugee return. FM spokesman Khazar Ibrahim called for further talks on basis of 14 March UNGA resolution reaffirming support of Azerbaijan territorial integrity. Azeri and Armenian FMs met 6 May in Strasbourg, discussed possible June meeting of presidents.