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Akbar Novruz

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The US-brokered peace plan signed in August 2025 provides a solid foundation for normalizing bilateral relations between Azerbaijan and Armenia, Azernews reports, citing international rating agency Moody’s.

"Risks related to the conflict between Azerbaijan and Armenia still persist. However, we believe that the conflict will not escalate to the point that it would significantly slow down the policymaking process or negatively affect the economic and fiscal prospects of the countries in 2026. The US-brokered peace plan between Armenia and Azerbaijan provides a solid basis for normalizing bilateral relations," Moody’s said in its report.

The agency added that these risks are unlikely to disrupt the strong economic growth of either country.

The peace plan was formalized on August 8, 2025, when President of Azerbaijan Ilham Aliyev, US President Donald Trump, and Armenian Prime Minister Nikol Pashinyan signed a joint declaration in Washington. On the same day, Azerbaijan’s Foreign Minister Jeyhun Bayramov and Armenia’s Foreign Minister Ararat Mirzoyan initialed the draft “Agreement on the Establishment of Peace and Interstate Relations between the Republic of Azerbaijan and the Republic of Armenia.”

The joint initiative also included an appeal to the OSCE Chairman-in-Office to close the OSCE Minsk Process, including the positions of the Personal Representative of the OSCE Chairman-in-Office and the High-Level Planning Group.