Azernews.Az

The peace process between Armenia and Azerbaijan has reached its most constructive stage in many years, according to a new assessment by the international rating agency “S&P Global Ratings,” Azernews reports.

In its analysis, S&P emphasized that “the peace process between Armenia and Azerbaijan has entered its most constructive phase in recent decades. However, the transition from a high-level political declaration to a comprehensive, legally sound settlement remains incomplete.”

The agency highlighted that the US-mediated declaration achieved in August 2025 marked a major breakthrough. It established commitments on mutual recognition, accelerated border delimitation, and the reopening of regional transport routes — all considered essential steps in stabilizing the post-war landscape.

At the same time, S&P pointed to the remaining political barrier: Azerbaijan’s expectation that Armenia remove constitutional provisions that may imply territorial claims to Garabagh. According to the agency, this issue stands as the most sensitive challenge to finalizing a full peace treaty.

S&P stated that “the risk of a full-scale conflict resumption has significantly decreased. However, the lack of a formal peace agreement means that the process depends more on sustained political will and progress in technical negotiations.”

The report also noted that both governments aim to reduce defense spending in 2026 — a sign of declining military tensions and increasing confidence in the political trajectory of the peace negotiations.