Moody's: Easing of tensions between Armenia, Azerbaijan started to yield tangible effects

Since December, Azerbaijan has delivered three shipments of petroleum products to Armenia via Georgia, signaling the start of direct trade and economic engagement alongside the reopening of transport corridors, Report informs referring to the international ratings agency Moody's.

Additionally, negotiations on oil and petroleum trade are ongoing; if successful, they would mark a structural shift from decades of isolation and reduce Armenia"s dependence on Russian fuel, according to the update.

"Since the agreement on terms of a peace treaty in March, there has been further constructive progress in bilateral relations with Armenia. Diplomatic exchanges between both countries" leaders have become more frequent, including a prominent US-brokered joint declaration in August that commits both parties to mutual recognition, renunciation of territorial claims, accelerated border delimitation, and the reopening of transportation routes," the agency notes.

According to Moody's, the easing of tension between the two countries has begun to yield tangible effects. Both have lifted border restrictions for cargo transit in October, and for the first time in decades, a train carrying 1,000 tonnes of Kazakh wheat transited through Azerbaijan to Armenia, signalling the potential for a restoration of economic connectivity.

In January of this year, the US and Armenia formalized the framework for the implementation of the Trump Route for International Peace and Prosperity (TRIPP). This initiative aims to stimulate regional trade, expand transport connectivity, and create new routes linking Central Asia and the Caspian region with Europe.

This corridor provides a direct link between Azerbaijan and its Nakhchivan Autonomous Republic.