By Ilgar Gurbanov

June 27, 2019, the CACI Analyst

The regime change in Armenia revived hopes in Azerbaijan that the new Armenian government would take a more proactive approach to the frozen settlement process of the Nagorno-Karabakh conflict. The latest meeting of Azerbaijan’s and Armenia’s leaders in Vienna promised humanitarian cooperation, yet the short-term silence on the frontline was soon broken by new ceasefire violations and counter-productive statements from the Armenian government. From Azerbaijan’s perspective, the building of trust required for a reinvigoration of the peace process requires steps such as the withdrawal of Armenian occupying forces from Azerbaijan’s territories, with a subsequent return of IDPs. Armenia’s overreliance on the status-quo creates systemic problems for the negotiations.

By Tamerlan Vahabov

May 7, 2019, the CACI Analyst

Azerbaijan’s centralized Ministry of Defense Industry (set up in 2005) has for now been dismantled and replaced by the Azersilah Corporation. For now, because the former ministry is “terra incognita” when it comes to its assets and liabilities. Depending on its indebtedness and liabilities, its corporate form may switch back to become a government agency. Yet regardless of its legal form, President Ilham Aliyev’s decree envisions corporatization, corporate management and sustainability of the defense industry product output. The twokey questions are how Azersilah will manage its relationship with newly emergent local companies in Azerbaijan’s defense industry market to attain financial stability, and how the new legal entity will contribute to a better alignment of its portfolio development with thearmy’s operational needs in the Nagorno-Karabakh conflict.

By Ilgar Gurbanov

March 27, 2019, the CACI Analyst

In parallel with their peace talks on the Nagorno-Karabakh conflict, Azerbaijan and Armenia seek to diversify and deepen their partnerships with major arms suppliers. By diversifying its arms purchases from several different partners, Azerbaijan seeks to multiply its arsenal and retain a military advantage against Armenia, whose corresponding efforts aim to cement the status quo through military occupation of Azerbaijan’s territories. Both countries aim to maximize the tactical efficiency of their arsenals on the potential battlefield.

By Emil A. Souleimanov and Huseyn Aliyev

January 23, 2019, the CACI Analyst

Recent weeks have seen an unprecedented series of high-level meetings of Armenian and Azerbaijani representatives on Nagorno-Karabakh, Azerbaijan’s breakaway territory closely linked since the early 1990s to Armenia. Whereas many analysts considered resumed peace talks unlikely after the April 2016 fighting, Armenia’s Velvet Revolution and the replacement of the country’s war-hardened Karabakh elite with a forward-looking and liberal government has provided new stimulus in this regard. As Azerbaijani officials perceive the recent power shift in Armenia as a window of opportunity to advance a peaceful solution to the long-standing conflict, optimism regarding the prospect of a deal appears higher than in many years.

By Eduard Abrahamyan

December 17, 2018, the CACI Analyst

On October 24-26, a U.S. State Department delegation headed by National Security Adviser Ambassador John Bolton visited the South Caucasian republics after talks in Moscow. The delegation’s visit to Azerbaijan, Armenia and Georgia was immediately dubbed a reinvigoration of U.S. policy towards the Caucasus and a pragmatic reengagement with the conflicted region. Bolton appeared to refine the evolving U.S. priorities with each country, categorizing them in accordance with political capabilities, shared interests and the roles that Georgia, Azerbaijan and Armenia respectively seek in relations with the West. The visit, however, caused an angry reaction from Moscow, especially given the issues Bolton raised in Yerevan.