Armenia-Azerbaijan conflict: Decades-long territorial dispute and impact on world markets

deces-old territorial dispute between Azerbaijan and Armenia again turned into dely clashes with at least 23 people losing ir lives on September 27. two former Soviet states are in an armed stand-off for years over Nagor-Karabakh, a landlocked region in South Caucasus, and heavy clashes re-erupted on Sunday, prompting fears of an all-out war.

Nagor-Karabakh is internationally recognised as a part of Azerbaijan but it remains disputed because region is controlled by ethnic Armenians. Azerbaijan has declared martial law in border areas and Armenia has declared it across country and mobilised its male population after situation escalated in disputed region. Armenia has even accused Turkey of meddling in conflict by sending thousands of mercenaries from Syria, a claim swiftly rejected by Ankara.

Russia-Turkey position

While Russia, an ally of Armenia, called for an immediate ceasefire, Turkish President Recep Tayyip Erdogan explicitly extended support to Azerbaijan, urging international community to stand with Baku in its "battle against invasion and cruelty". Active involvement of regional players like Russia and Turkey, countries alrey at loggerhes over Syrian crisis, could aggravate situation.

Bishkek Protocol

conflict broke away in early 1990s with tens of thousands dying in armed clashes and a Russian-brokered ceasefire, Bishkek Protocol, was signed in 1994. However, Bishkek Protocol has failed to turn into a tangible peace process since both sides have continued violating ceasefire on numerous occasion and latest clash could furr escalate tensions.

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Impact on markets

A possible war could severely impact international markets because Nagor-Karabakh serves as a corridor for oil and gas pipelines from Caspian Sea to world markets. France, Germany, Italy, United States, and European Union have urged an immediate ceasefire and United Nations chief Antonio Guterres has expressed extreme concern over fresh resumption of hostilities.

Stephane Dujarric, Spokesman for Secretary-General, said in a statement that Guterres condemns use of force and regrets loss of life and toll on civilian population. top UN official has strongly called on sides to de-escalate tensions and return to meaningful negotiations without delay. 

“He will be speaking to both President of Azerbaijan and Prime Minister of Armenia,” statement re.

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