Country Analysis Briefs: Azerbaijan
"While Azerbaijan’s importance as a supplier of natural gas and oil likely will increase in the future, the continued disputes with Armenia over the Nagorno-Karabakh region, as well as issues with Azerbaijan’s access to the Nakhchivan exclave continue to provide some political risk in the country. Furthermore, the conflicting claims over the maritime and seabed boundaries of the Caspian Sea between Azerbaijan and Iran also provide continued uncertainty, with Iran insisting on an even one-fifth allocation and challenging Azerbaijan's hydrocarbon exploration in disputed waters. Bilateral talks continue with Turkmenistan on dividing the seabed and contested oilfields in the middle of the Caspian, while discussions with Georgia continue on the alignment of their boundary at certain crossing areas."