Stalled Peace Plan: A Roadblock to Prosperity

One year after a historic peace deal was signed in Washington, DC, officials from the US, Armenia, and Azerbaijan remain optimistic about the potential for stability and prosperity in the South Caucasus. However, progress toward implementing the joint declaration has been slow.

The US Secretary of State, Marco Rubio, recently reaffirmed Washington's commitment to realizing the deal's potential. He highlighted several accomplishments, including the start of surveying work for a railway that would connect Armenia to Turkey and beyond, as well as the establishment of a $201 million Trans-Caspian Enterprise Fund.

Despite these efforts, many key operational details remain to be worked out, including the US role in ensuring the route's security and potential customs procedures for Azerbaijani individuals and goods. Armenian officials have also sought to attract additional investors in the project, but have yet to receive any firm commitments.

The ongoing war between the US and Iran has added a wild card to the situation. Iranian leaders are opposed to the peace deal, worried that it will impede their ability to trade. Whether Iran has the power to disrupt the deal's development is an open question.

Meanwhile, Armenian and Iranian officials have been meeting to discuss trade and transport. They have developed a memorandum of understanding to make border-crossing procedures more efficient and open 'parallel' trade corridors in the region.