ABSTRACT
The Nagorno-Karabakh (N-K) conflict remained a major source of tension in the South Caucasus region where the geostrategic interests of Iran, Russia and Turkey diverged. The negotiations and the Minsk Group (MG) mediation served as a restraining factor, discouraging both sides from serious escalation. Military build-up by Armenia, Azerbaijan and Karabakh continued in the much more sensitive region with Iran to the south, the North Caucasus to the north and Turkey to the west. Military build-up by Armenia, Azerbaijan and Karabakh continued in the much more sensitive region with Iran to the south, the North Caucasus to the north and Turkey to the west. There was the fear that if a full-scale fighting between Armenia and Azerbaijan broke out again the regional powers of Russia, Turkey and Iran could be drawn in directly or indirectly. Russia's behaviour should also change by demonstrating 'with more than words that its principal aim is peace in the South Caucasus, not increased arms sales'.
