A peace agreement signed in Washington on August 8, 2025, establishes a direct transport corridor between Armenia and Azerbaijan, aiming to resolve long-standing disputes and expand regional economic cooperation.

At a Glance

• Armenia and Azerbaijan sign first direct peace accord in more than three decades
• Agreement includes railway access between Azerbaijan and its exclave Nakhchivan via Armenia
• Both nations commit to bilateral economic cooperation in energy, trade, and technology
• U.S. hosts and facilitates the signing ceremony in Washington
• Deal anticipated to reduce regional tensions and adjust geopolitical dynamics in the South Caucasus

The Peace Agreement

On August 8, 2025, U.S. President Donald J. Trump hosted Azerbaijani President Ilham Aliyev and Armenian Prime Minister Nikol Pashinyan at the White House for the signing of a peace accord. The agreement marks the first direct resolution framework between the two countries since the late 1980s. Previous mediation attempts by Russia, the European Union, and other international bodies had not resulted in a final accord.

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The agreement formalizes commitments to cease hostilities, establish transportation links, and promote economic collaboration. International observers have noted its potential to alter existing influence patterns in the South Caucasus by introducing new U.S.-supported infrastructure and economic frameworks.

Railway Corridor and Infrastructure

Central to the deal is the creation of a railway corridor that allows Azerbaijan direct access to its exclave, Nakhchivan, through Armenian territory. The route is to operate under agreed transit regulations while preserving Armenian sovereignty.

The railway project, described as a strategic economic connector, is expected to facilitate trade between the two countries and improve regional logistics. Officials from both sides have highlighted its potential to boost economic activity and encourage cross-border cooperation.

Economic Cooperation and Regional Impact

Alongside the transport agreement, the two nations signed bilateral economic cooperation frameworks covering energy, trade, and technology. These agreements aim to diversify regional economies, improve infrastructure, and encourage foreign investment.

According to statements from Azerbaijani and Armenian leaders, the accord offers both practical infrastructure benefits and opportunities for economic development. Observers anticipate that the arrangement may shift regional trade patterns and influence the role of neighboring states, including Russia and Iran, in South Caucasus affairs.

The U.S. will maintain a facilitation role during the implementation phase, overseeing infrastructure progress and supporting joint economic initiatives. Early construction work on the railway is expected to begin in late 2025.

Sources

Reuters
White House
Associated Press