South Caucasus

In September, it was announced that China has joined Kazakhstan, Azerbaijan, and Georgia as a partner in the Middle Corridor Initiative, with the China Railway Container Transport Corporation (CRTC) participating in the project. The decision followed extended talks over several months and was confirmed during the 8th International Silk Road Expo, held in Xi’an from September 19-20, 2024. This announcement comes amid the growing significance of the Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR), as a crucial trade link between China and Europe, passing through several Central Asian and South Caucasian countries. The Middle Corridor Multimodal joint venture, established in 2023, offers a “one-stop-shop” service for cargo delivery along this route, aiming to enhance transport coordination, provide transparent tariffs, and ensure consistent delivery times.

The US Helsinki Commission on Tuesday (1 October) published an analysis of Russia's political and economic agenda. The document addresses, among other things, various developments in the South Caucasus. The region is experiencing various political shifts as Russia's material influence wanes due to its focus on its war with Ukraine. On the one hand. Armenia was once one of Russia's strongest allies. However, following the Nagorno Karabakh war in 2020, Armenia has moved away from Moscow and more towards a Western agenda. On the other hand, Azerbaijan has adopted a cooperative approach with Russia, especially given the similarities between the two countries' strong governmental grip.   

Ruben Vardanyan, an Armenian ex-official of the self-declared Nagorno Karabakh administration, was arrested and imprisoned along with other top Karabakh officials during Baku's recapture of Nagorno Karabakh in September 2023. On Thursday (3 October), Vardanyan's lawyers filed a lawsuit in Baku for alleged torture and denial of a speedy trial. 

On Wednesday (3 October), the Tavush movement, under the new name of the Holy Struggle, held a political rally in Yerevan's Republic Square. The movement was formed to protest against border delimitation with Azerbaijan, but also to demand the resignation of Armenian Prime Minister Nikol Pashinyan. The newly chosen name, 'Holy Struggle', is a strategic way of attracting support, particularly by exploiting its Christian overtones. 

A new study entitled "Biodiversity, Conservation and Sustainability in Asia" by Münir Öztürk, Volkan Altay and Recep Efe has found that environmental degradation across the South Caucasus is affecting public health, water and food security. The three countries of the South Caucasus - Armenia, Azerbaijan and Georgia - have environmental legislative frameworks but lack effective practices to promote sustainable growth. The main areas of concern identified by the research are soil erosion, deforestation and poorly planned urbanisation. 

Politburo member Nguyen Xuan Thang met the Azerbaijani ambassador in Hanoi on Tuesday (1 October). Thang said that this year marks a big anniversary in the relationship between Vietnam and Azerbaijan. It is the 65th anniversary of President Ho Chi Minh's visit to Baku. Thang reaffirmed Vietnam’s commitment to strengthening its friendship and cooperation with traditional allies like Azerbaijan. 

The Armenian government plans to increase military spending by about 20 per cent, equivalent to 110 billion drams (about $286 million). According to the proposed state budget for 2025, the Ministry of Defence will receive 664.6 billion drams (about $1.7 billion). Military expert Leonid Nersisyan, a researcher at the Armenian analytical centre APRI, describes this defence spending as unprecedented. However, he points out that despite the increased budget, Yerevan still lags far behind Baku in terms of military spending. Military spending remains lower than social spending in the state budget. Although the gap in military spending between Armenia and Azerbaijan is narrowing, with Armenia now trailing by a factor of two instead of five or six as it did in 2013, the difference remains significant.

The United States has announced a $20 million aid package to strengthen Armenia's cyber, border and energy security, USAID Administrator Samantha Power announced at a Democracy Delivers Initiative event in New York. The event, co-hosted by US Secretary of State Antony Blinken, was attended by Armenian Prime Minister Nikol Pashinyan.

The conflict between Armenia and Azerbaijan, two republics in the South Caucasus, has never been solely about their bilateral relations. Regional and distant powers have long sought to influence the conflict, pursuing their own strategic interests. This dynamic persisted even after the Second Karabakh War (27 September – 10 November 2020), which ended the core dispute between Armenia and Azerbaijan by bringing an end to the occupation of Azerbaijan’s Karabakh region. As the fourth anniversary of the war’s onset – also known as the 44-Day War – approaches, Baku and Yerevan continue to struggle with the peace process. Meanwhile, the most significant post-war initiative, the reopening of regional transportation and communication links, is facing increasing complications. Today, the often destructive involvement of external powers has become a major obstacle to the normalisation of Armenia-Azerbaijan relations and the implementation of regional transport projects.