What's Happening?
The signing of a peace deal between Armenia and Azerbaijan is being delayed by the unresolved issue of exclaves, territories surrounded by land belonging to the other country. Armenia's Prime Minister Nikol Pashinyan is now advocating for a territorial
swap to resolve this, a proposal that Azerbaijan is less enthusiastic about. This issue involves four small exclaves created by the Soviets: three Azerbaijani ones within Armenian borders and one larger Armenian one within Azerbaijan. Pashinyan believes that there should be no exclaves on either side of the border and proposes exchanging territories of corresponding sizes. This swap would involve transferring sovereignty over four Azerbaijani villages in Armenia to Armenia, and sovereignty over the larger village of Artsvashen, currently controlled by Baku, to Azerbaijan. While Baku desires to sign a peace treaty now, Yerevan suggests it may take several years to finalize due to this and other issues. Calls for such territorial exchanges have been a recurring feature of relations between the two countries since the early 1990s.
Why It's Important?
The resolution of the exclave issue is critical for establishing a stable and lasting peace between Armenia and Azerbaijan, directly impacting regional security and U.S. interests in the South Caucasus. Unresolved territorial disputes are a significant source of instability, potentially leading to renewed conflict and undermining diplomatic efforts. For the U.S., a finalized peace agreement would contribute to regional stability, facilitate economic development, and potentially open new trade routes, such as the Middle Corridor. The proposed territorial swap, if successful, could create a more clearly defined and manageable border, reducing friction points. However, the differing stances on the swap highlight the deep-seated mistrust and complex historical grievances that continue to impede progress. Azerbaijan's reluctance to embrace the swap, despite its military advantage, suggests a strategic calculation to maximize concessions from Armenia. Conversely, Armenia's push for the swap indicates a desire to normalize borders and secure its territorial integrity. The outcome of these negotiations will set a precedent for future conflict resolution in the region and could influence the geopolitical balance of power, affecting U.S. strategic objectives for a peaceful and prosperous South Caucasus.
What's Next?
The immediate future will involve continued negotiations between Armenia and Azerbaijan regarding the proposed territorial swap. Armenian officials have indicated that while the issue is sensitive, it does not necessarily constitute an obstacle to signing the peace agreement, though a nationwide referendum might be required for any exchange of territories. Azerbaijani media has reported Pashinyan's comments, but Baku has not explicitly confirmed its openness to the swap. The success of similar land swaps in Central Asia may serve as a precedent, potentially encouraging Baku to consider the proposal more seriously. However, opposition within Armenia to any territorial concessions remains strong, making the process politically fraught. The U.S. and other international actors will likely continue to encourage direct dialogue and mediation to facilitate a resolution. The timeline for a final peace treaty remains uncertain, with Yerevan suggesting it could be several years before it is signed. The ongoing discussions will also likely touch upon other outstanding issues, such as constitutional changes in Armenia and the delimitation of borders, all of which contribute to the complexity of achieving a comprehensive peace.
Beyond the Headlines
The debate over exclaves between Armenia and Azerbaijan delves into the profound legacy of Soviet-era administrative divisions and their enduring impact on post-Soviet statehood. These seemingly minor territorial anomalies represent significant emotional and political flashpoints, embodying historical grievances and national identity. The U.S. interest in resolving this issue extends beyond immediate conflict prevention; it is about fostering a regional order where internationally recognized borders are respected, and disputes are settled through diplomatic means rather than military force. The proposed territorial swap, if realized, would not only simplify borders but also symbolize a mutual acceptance of current realities, moving beyond irredentist claims. However, the deep unpopularity of territorial concessions within Armenia underscores the challenge of reconciling national aspirations with pragmatic geopolitical necessities. This situation highlights the delicate balance leaders must strike between securing peace and maintaining domestic political support. The long-term implications include the potential for a more integrated South Caucasus, where economic and political cooperation can flourish, or, conversely, a region where unresolved territorial issues continue to simmer, threatening future stability and hindering U.S. efforts to promote a rules-based international order.












