The peace treaty negotiations is a positive step toward easing geopolitical strains between Azerbaijan and Armenia, and if the agreement is signed and upheld, it could strengthen investment sentiment and economic potential in the two countries, APA-Economics reports citing the report of Moody's international rating agency.
It was noted that this could also support Azerbaijan's economic development in various areas: "For Azerbaijan, completion of the peace agreement could allay concerns over the stability of the formerly contested region and thereby stimulate developmental momentum and foreign investor interest. This outcome could support further progress in economic diversification, given the government’s intention to establish the region as a digitized, green zone targeting a variety of non-oil sectors such as tourism, agriculture, food and creative industries. Additionally, improved regional stability would enhance the viability and attractiveness of the Middle Corridor, which has already had substantial growth in transit volumes over the past three years."
On March 13, Moody's assessed the agreement reached on the terms of a peace treaty between the two countries as a positive step, but stated that it does not expect a treaty to be signed in the near future that would sustainably resolve the tensions: "On 2 April, Azerbaijani President Ilham Aliyev reiterated his country's demands that Armenia remove a territorial provision in its constitution and the Minsk Group be dissolved as conditions for signing a peace treaty. The conditions will likely require Armenia to hold a referendum, which will take time and test the domestic political capital of the current government. Therefore, we do not expect the two sides to sign a peace agreement in the foreseeable future that would lead to a durable resolution of their tensions."
Follow us on Telegram
t.me/apanewsaz
Follow us on Instagram
Follow us on TikTok
Follow us on Facebook
Follow us on X
