Armenia, Azerbaijan, and Georgia: Political Developments and Implications for U.S. Interests

Publication Date: May 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Coverage: Georgia (Republic)

Abstract:

The United States recognized the independence of all the former Soviet republics by the end of 1991, including the South Caucasus states of Armenia, Azerbaijan, and Georgia. The United States has fostered these states' ties with the West in part to end the dependence of these states on Russia for trade, security, and other relations. The United States has pursued close ties with Armenia to encourage its democratization and because of concerns by Armenian-Americans and others over its fate. Close ties with Georgia have evolved from U.S. contacts with its pro-Western leadership. The Bush Administration s upports U.S. private investment in Azerbaijan's energy sector as a means of increasing the diversity of world energy suppliers and to encourage building multiple energy pipelines to world markets. The United States has been active in diplomatic efforts to end conflicts in the region, many of which remain unresolved.

The FREEDOM Support Act (P.L. 102511) provides the major authorization for assistance to the Eurasian states for humanitarian needs, democratization, creation of market economies, trade and investment, and other purposes. Section 907 of the act prohibits most U.S. government-to-government aid to Azerbaijan until its ceases blockades and other offensive use of force against Armenia. This provision has been partly altered over the years to permit humanitarian aid and democratization aid, border security and customs support to promote non-proliferation, Trade and Development Agency aid, Overseas Private Investment Corporation insurance, Eximbank financing, and Foreign Commercial Service activities.

In the aftermath of the September 11, 2001, terrorist attacks on the United States, the Administration appealed for a national security waiver of the prohibition on aid to Azerbaijan, in consideration of Azerbaijan's assistance to the international coalition to combat terrorism. In December 2001, Congress approved foreign appropriations for FY2002 (P.L. 107-115) that granted the President authority to waive Section 907, renewable each calendar year under certain conditions. President Bush exercised the waiver most recently in February 2006.

As part of the U.S. Global War on Terrorism, the U.S. military in May 2002 began providing security equipment and training to help Georgia combat terrorist groups in its Pankisi Gorge area and elsewhere in the country. Azerbaijani and Georgian troops participate in stabilization efforts in Afghanistan and Iraq, and Armenian personnel serve in Iraq.

Foreign Operations Appropriations for FY2006 was signed into law on November 14, 2005 (H.R. 3057; P.L. 109-102). It calls for $75 million in FREEDOM Support Act aid to Armenia ($20 million above the request), $35 million for Azerbaijan, and $67 million for Georgia. It calls for $12 million in Foreign Military Financing for Georgia and $5 million each for Armenia and Azerbaijan. It also supports $750,000 in International Military Education and Training aid each for Armenia and Azerbaijan. The conferees (H.Rept. 109265) agree that at least $3 million be provided to address ongoing humanitarian needs in Nagorno-Karabakh.