Azerbaijani diplomatic sources confirmed Thursday that President Ilham Aliyev and Armenian Prime Minister Nikol Pashinyan held a productive dialogue addressing the core issues of the ongoing peace process. The two leaders reportedly made progress on some of the most sensitive matters, including the demarcation of borders, the activation of the Zangezur Corridor, and the formalization of a comprehensive peace agreement.

“The atmosphere was constructive,” one source said, emphasizing that both sides are aligned on the importance of finalizing a lasting settlement after decades of conflict centered around Nagorno-Karabakh.

The meeting concluded with a general agreement to sustain the pace of talks, raising cautious optimism that the long-awaited Armenia-Azerbaijan peace deal may be within reach.

The conflict between Armenia and Azerbaijan centers on the long-disputed region of Nagorno-Karabakh, internationally recognized as part of Azerbaijan but historically populated and governed by ethnic Armenians. Tensions escalated into full-scale war in the early 1990s following the collapse of the Soviet Union, resulting in Armenian forces seizing control of Nagorno-Karabakh and surrounding Azerbaijani districts.

In 2020, a six-week war led to a decisive Azerbaijani military victory and a Russia-brokered ceasefire, which saw Baku regain most of the territory it lost in the 1990s. Over 100,000 ethnic Armenians fled Nagorno-Karabakh following Azerbaijan’s September 2023 military operation, which re-established full control over the region and marked a turning point in the decades-long conflict.

Since then, both countries have been engaged in sporadic but significant negotiations to reach a final peace agreement. Key unresolved issues include:

• Border delimitation and demarcation, as the two countries never officially set their boundaries following independence from the Soviet Union.
• The proposed Zangezur Corridor, a transport link that would connect mainland Azerbaijan with its Nakhchivan exclave via southern Armenia.
• The signing of a formal peace treaty to end hostilities and normalize diplomatic relations.

Armenia, under Prime Minister Nikol Pashinyan, has expressed willingness to pursue peace despite strong domestic opposition and strained ties with its traditional ally Russia. Azerbaijan, led by President Ilham Aliyev, has sought to consolidate its gains while pushing for a legally binding agreement.

The latest meeting in Abu Dhabi—part of a series of internationally mediated talks—reflects both sides’ cautious readiness to finalize a settlement. However, lingering mistrust, geopolitical rivalries, and domestic political pressures continue to complicate the road to lasting peace in the South Caucasus.