S&P: Azerbaijan, Armenia pursuing constructive peace process

The peace process between Armenia and Azerbaijan has entered its most constructive phase in decades, Report informs referring to S&P Global Ratings.

"The peace process between Armenia and Azerbaijan has entered its most constructive phase in decades, but the transition from a high-level political declaration to a comprehensive, legally grounded settlement remains incomplete. The August 2025 US-brokered declaration delivered a decisive breakthrough by committing both sides to mutual recognition and accelerated border delimitation and the reopening of regional transport routes.

The most politically sensitive barrier to a full treaty remains Azerbaijan's expectation that Armenia will amend its constitution to remove language implying potential claims on Karabakh, a change that faces significant domestic resistance in Yerevan.

The risk of a return to large-scale conflict has declined significantly, but the absence of a formal peace treaty means the process depends heavily on continued political will and progress in technical negotiations. Notably, both governments plan to reduce defense spending in their 2026 budgets, a shift that further signals reduced near-term military tensions and confidence in the political trajectory of the peace process," reads the message.