South Caucasus

In July 2025, Armenia officially applied to become a full member of the Shanghai Cooperation Organization (SCO), marking a significant step, underscoring its commitment to a diversified foreign policy amidst shifting regional dynamics. In this analysis, Johnny Melikian, Senior Research Fellow at Orbelli Centre in Yerevan, discusses the reasons behind Armenia's move. This application is more than a simple institutional maneuver, he argues; “it encapsulates Yerevan’s strategic search for geopolitical stability, economic partnerships, and regional relevance in an increasingly complex Eurasian theater.” As Prime Minister Nikol Pashinyan confirmed during a press conference on July 16, the move reflects Armenia’s pursuit of a balanced and balancing foreign policy amidst shifting global and regional dynamics.

Uncertainty has again emerged along the Armenia-Iran border as the risk of the long-standing conflict between Armenia and Azerbaijan turning into further geopolitical competition continues. What was once a post-war localised disagreement over territory and sovereignty is now entangled in a web of regional interests and strategic manoeuvring. Increasingly, peace risks being shaped less by the needs of local populations but more by the calculations of distant capitals. External interference has rather delayed progress almost five years since the 2020 war. If peace is the objective, then the region needs inclusive not selective diplomacy and definitely not new geopolitical fault lines.