No breakthrough as Azerbaijani and Armenian Presidents Aliyev and Kocharian met during 9 June St Petersburg CIS Summit, despite optimism of OSCE Minsk Group negotiators. Armenian- Azerbaijani delegation of intellectuals, led by 2 countries’ Moscow ambassadors, visited Stepanakert and Yerevan 28 June. Azerbaijani army captured Armenian soldier 11 June; claimed he did not want to return. Campaigning for de facto 19 July presidential elections began.

Minsk Group Co- chairmen held separate consultations with Armenian and Azerbaijani FMs 11 May, focusing on Yerevan and Baku’s responses to group’s latest proposals on outstanding differences. Russian co-chair Merzlyakov said meetings “productive”. Presidents Kocharian and Aliyev to meet at 10 June CIS summit in St Petersburg. Azerbaijani soldier reportedly killed by NK forces sniper near Agdam region 11 May.

Armenian and Azerbaijani FMs met for “constructive” talks in presence of Minsk Group chairmen in Belgrade 18 April. De facto NK authorities set presidential election for 19 July.

14 March Geneva meeting between Azeri and Armenian FMs organised by Minsk Group brought little progress. “Deep differences” remain over unspecified aspects of peace accord according to Armenian FM Oskanian. Ministers agreed to meet in April in preparation for late May presidential summit. Sniper from NK forces killed Azerbaijani soldier in Agdam district near NK 15 March.

Minsk Group co- chairmen, meeting Paris 14-15 February, called on parties to avoid any action that could undermine recent progress. Statement reflected concerns over possible GUAM-sponsored UN General Assembly resolution on frozen conflicts in Georgia, Ukraine, Azerbaijan and Moldova. 2 servicemen captured by Karabakh Armenian forces near NK in December released to Azerbaijan where arrested on high treason, desertion charges.

Armenian and Azerbaijani FMs Oskanian and Mammadyarov held new round of talks in Moscow 23 January. OSCE Minsk Group co-chairs visited Azerbaijan, Armenia and NagornoKarabakh 24-26 January, urging parties to sustain negotiations’ momentum and prepare publics for compromises. 1 Azeri and 1 Armenian soldier allegedly killed near NK in month.

De facto authorities held constitutional referendum 10 December; turnout at 87% with 99% in favour of constitution. Azerbaijan dismissed poll as illegitimate; EU, OSCE also critical. Armenian President Kocharian warned no “active negotiations” between presidents until after spring 2007 elections in Armenia; FM Oskanian said negotiations to continue at ministerial level.

Presidents Aliyev and Kocharian met on sidelines of CIS Minsk Summit 28 November. Both sides cited progress at meeting. Foreign ministers met 13 November to continue negotiations toward agreement on principles. De facto authorities set constitutional referendum for 10 December; text declares NK “sovereign, democratic and independent”.

Armenian and Azerbaijani foreign ministers held talks in Moscow and Paris; no breakthrough but agreed to meet again in November. Defence ministers discussed enforcement of ceasefire at border meeting 20 October; militaries traded accusations of ceasefire violations resulting in 2 soldier deaths.

UN General Assembly resolution stressed need for environmental operation to suppress fires in “occupied regions of Azerbaijan”, requesting OSCE share findings of planned investigation; fires affecting areas close to line of contact have been source of contention between 2 sides. Minsk Group co-chairmen met foreign ministers of Armenia London 12-13 September.