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Economy / Armenia

Nagorno-Karabakh Tensions Increasing

November 2009 | Risk Summary

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Tensions between Armenia and Azerbaijan over the breakaway territory of Nagorno-Karabakh flared up again on November 23 after Armenia stated it could recognize the independence of the Armenian populated enclave. Armenian Presidential spokesman, Samvel Farmanyan, stated that, should Azerbaijan follow through with its threat of using military action to take back the mountain territory, Armenia would immediately recognize the independence of Nagorno-Karabakh, which it has not done up until the present. As such, we highlight that this development, and the possibility of an Armenian recognition of independence for Nagorno-Karabakh, poses significant risks to peace negotiations going