Baku: The peace treaty negotiations between Azerbaijan and Armenia are being closely monitored as a potential catalyst for increasing foreign investment in Azerbaijan. If the agreement is finalized and maintained, it could enhance the investment atmosphere and economic prospects for both nations.

According to Azeri-Press News Agency, citing a report from Moody’s international rating agency, the ongoing negotiations mark a significant step towards reducing geopolitical tensions in the region.

Moody’s highlights that a successful peace agreement could alleviate concerns regarding the stability of the previously disputed region, thereby boosting Azerbaijan’s economic development across multiple sectors. The report notes that Azerbaijan’s government aims to transform the area into a digitized, green zone, with a focus on non-oil sectors such as tourism, agriculture, food, and creative industries. Additionally, improved regional stability would augment the appeal and functionality of the Middle Corridor, which has experienced notable increases in transit volumes over recent years.

On March 13, Moody’s acknowledged the agreement on the peace treaty terms as a constructive development. However, the agency remains cautious about the timeline for a treaty signing that would sustainably resolve existing tensions. Azerbaijani President Ilham Aliyev, on April 2, emphasized conditions for the treaty, including the removal of a territorial provision in Armenia’s constitution and the dissolution of the Minsk Group. These stipulations might necessitate a referendum in Armenia, potentially challenging the current government’s political standing. Consequently, Moody’s does not foresee a peace agreement being signed imminently that would lead to a lasting resolution of the conflicts.