Economic Diplomacy in conflict resolution - The Nagorno-Karabakh conflict

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[...] Economic Diplomacy in conflict resolution The Nagorno-Karabakh conflict Introduction ● EU is Azerbaijan's largest trading partner and foreign investor ● Azerbaijan is an important source for the EU energy market ● EU-Azerbaijan trade relations are based on a Partnership and Cooperation Agreement since 1999 EU-Azerbaijan trade in goods (2020). Retrieved from https://ec.europa.eu/trade/policy/countries-and-regions/countries/azerbaijan/ The Nagorno-Karabakh conflict Overview of the conflict 1980s- 1992 ● 1988: Nagorno-Karabakh voted to become part of Armenia ● 1992: start of the war 1994 ● Cease-fire ● Nagorno-Karabakh remains part of Azerbaijan 2018-2019 ● Armenian revolution ● Both parties agrees to de-escalation July 2020 ● Fights erupted ● Mutual accusations of broken ceasefire International interests Russia Turkey The EU ● Supports Armenia: Russian military bases on Armenian soil ● Military Alliance ● But maintains good relations with Azerbaijan ● Supports Azerbaijan: “One nation with two states” ● No official relations with Armenia ● Both parties are members of the ENP ● The conflict threatens its energy security ● Probability of a direct intervention very low Scope for Economic diplomacy to meet foreign policy goals? [...]

[...] Fall in oil prices, has increased Azerbaijan's need for resources. Azerbaijan would benefit from trade diversification in exports and possible WTO membership Tools of economic diplomacy at the EU's disposal Loan Conditionality of the EIB, EBRD TECHNICAL Knowhow Support with accession to WTO Incentives of trade liberalization to potential partners. [...]