Diplomacy
A new chapter in the ill-fated destiny of the Caucasus: Notes from J.D. Vance’s diplomatic foray into Baku and Yerevan
The Strategic Partnership Charter, signed between Azerbaijani President Ilham Aliyev and United States Vice President J.D. Vance, has elevated the relations between the two states from a mere declaration of intent to the level of a formal, unshakable “covenant.” This document symbolizes not only a rapprochement between the two nations but also the definitive entry of the region into the strategic orbit of the NATO axis. As the American Embassy in Baku has articulated, Washington is acting with a resolute determination to “transform the dormant, gargantuan potential” of the South Caucasus into a lived reality.
The signed charter functions as a foundational instrument, regulating not just the current state of cooperation but its trajectory for decades to come. Among the core pillars of the document is the mutual and unconditional recognition of “sovereignty and territorial integrity.” This constitutes a high-level certification that the era of “frozen conflicts” in the region has reached its conclusion.
Provisions such as the development of transport routes and the establishment of partnerships in strategic sectors signal that the text will not remain a mere paper exercise; rather, it heralds a massive surge in ground-level infrastructure and an onslaught of American capital into the South Caucasus.
A Logistical Revolution: The Middle Corridor and the “Trump Route”
The concrete provisions of the charter focus heavily on regional connectivity. Two monumental projects take center stage here: the Trans-Caspian International Transport Route (Middle Corridor) and the TRIPP (Trump Route for International Peace and Prosperity).
The Middle Corridor is a commercial artery originating in China and extending through Kazakhstan, the Caspian Sea, Azerbaijan, and Georgia to Turkey and Europe—completely “bypassing” Russia. According to 2025 data, cargo flow along this route has seen a staggering 62% increase compared to 2024, reaching 4.5 million tons. For Western logistics firms, this path has become a far more profitable and secure alternative to the “Northern Route” passing through Russia. Indeed, the target is for cargo originating in China to reach Europe via this route in a mere 12 days.
The most critical link in this vast network is the 44-kilometer Zangezur Corridor, which will traverse Armenian territory. Following an agreement mediated personally by Donald Trump at the White House on August 8, 2025, the management of this corridor was transferred to the United States for a term of 99 years. This passage, dubbed the “Trump Route,” will connect Nakhchivan with the Azerbaijani mainland, thereby ending the geographical discontinuity of the Turkic republics—or, conversely, resulting in the encirclement of Russia from the south. This derelict line, where tracks had been uprooted since 1991, is now being reconstructed under the control of an American company, with an ownership structure where 30% of profits go to Armenia, 30% to Azerbaijan, and 40% to the American operator.[1]
The Influx of American Capital into the Caucasus
The economic dimension of the charter can be read as something far beyond conventional trade agreements—it is an all-out influx of American capital into Baku. A “digital transformation” is planned with the direct participation of both public and private sector capital from both nations. While cooperation is envisioned in high-tech fields such as artificial intelligence, data processing centers, and the aerospace industry, this process will be bolstered by joint research and development (R&D) activities and innovation platforms. Furthermore, technical support initiatives aimed at cultivating a skilled workforce will transform Azerbaijan’s human capital.
Under the heading of energy security, Azerbaijan’s diversification of supply routes and the support for the transit of mineral resources to global markets are vital for Europe, which has largely abandoned Russian oil and gas due to unilateral sanctions. In the realms of defense and security, there is an unprecedented convergence: the direct sale of defense industry products, joint military exercises and studies, the strengthening of cybersecurity, and humanitarian demining activities all aim for the Azerbaijani military’s “full alignment with NATO standards.”
Nuclear Rupture in Yerevan: The End of Metsamor and Dependence on the West
J.D. Vance’s visit to Yerevan, just one day prior to his arrival in Baku, represents the heaviest blow dealt to Russia’s presence in the Caucasus. The civil nuclear cooperation agreement signed between the US and Armenia fundamentally undermines Yerevan’s energy ties with Russia. The US has pledged up to $9 billion in investment for the Armenian nuclear sector. The primary focus of this investment is the replacement of the Soviet-era Metsamor Nuclear Power Plant (VVER-440 reactors)—long the subject of safety debates—with American-designed “Small Modular Reactors” (SMRs).
While Metsamor meets 40% of Armenia’s electricity needs, this partnership with the Russian company Rosatom had begun to be viewed as a “strategic burden” for Yerevan. In his briefing in Yerevan, Vance noted that an initial $5 billion in exports and $4 billion in long-term technical support were on the way.
On the other hand, the “North-South Corridor” project, nurtured by Russia with great hope, has effectively been rendered obsolete with the transition of Zangezur to American control. Moscow had initially envisioned that the control of this corridor would remain with its own border guards, but that plan collapsed with the declaration signed in Washington in August 2025.
The roots of Russia’s current defeat extend back to the 2004 Adjara crisis and the subsequent vacillating stances. Those who remained silent when Saakashvili seized Adjara in 2004, and those who failed to protect the 12th Military Base in Batumi, have today completely lost their influence over Karabakh and Zangezur. Adjara is an autonomous region located in southwestern Georgia, on the Turkish border. Aslan Abashidze, who governed the region from the 1990s until 2004, had established a pro-Russian feudal administration independent of the central Tbilisi government. Mikheil Saakashvili, who came to power in Georgia following the Western-backed “Rose Revolution” of 2003, re-established central authority over Adjara in 2004, forcing Abashidze to seek asylum in Russia.
Had Russia pursued a more assertive diplomatic and military line at that time, the 2014 Maidan events might never have occurred, nor would the Caucasus have shifted so drastically toward the Western orbit. Just as the 1940 British and French plans to bomb Baku (Operation Pike) posed a threat then, the American private military companies now establishing themselves in the region represent an equally “horrific” security vulnerability for Russia and Iran.[2]
The signatures penned at the White House on August 8, 2025, began to bear fruit at the start of 2026. Construction of the 224-kilometer Kars-Dilucu railway line was commenced by Kalyon Construction, while Azerbaijan completed the Horadiz-Ağbend line. The 1,000-strong American private military force to be stationed in the region is likely the precursor to much larger military bases, air defense systems, and radar networks.
It may be useful here to refer to the statements of Russian politician and diplomat Nikolay Platonkin, published in recent months in Moskovsky Komsomolets. According to Platonkin, who notes that Azerbaijan’s stance toward Russia is not new but the result of decades of policy that Moscow chose to ignore, the current situation between Moscow and Baku resembles “a typical Turkish soap opera scenario where the head of a respectable family is revealed to have been a mafia leader with a secret second life for years.”
Platonkin, who served as the head of the Armenia desk at the Russian Ministry of Foreign Affairs between 1998 and 2003, stated that Russia has made the same mistake with Azerbaijan as it did with Georgia.
“When Heydar Aliyev came to power, replacing the ultra-nationalist Abulfaz Elchibey, everyone in Moscow rejoiced. Yet throughout this time, Azerbaijan’s foreign policy remained consistently anti-Russian. Within the CIS, there were two groups from the beginning: those who wanted integration (Belarus, Armenia, Central Asia) and those who were anti-Russian and sought to strengthen ties with the West. This second group formed the GUAM (Georgia, Ukraine, Azerbaijan, Moldova) alliance. Azerbaijan was always a part of this group,” Platonkin said.
According to Platonkin, the reason Azerbaijan had not joined NATO until now was not a lack of desire, but rather its exclusion due to the Karabakh conflict. The diplomat recalled that Baku, with Western assistance, built infrastructure to export Caspian Sea energy resources by bypassing Russia and eventually forced Moscow out of the vital Gabala Radar Station by demanding exorbitant rent.
Arguing that Armenia, by contrast, had always been a loyal ally, Platonkin made the following claims:
“We have a joint air defense system with Armenia. The Armenians transferred their defense industry facilities to us in exchange for their debts. Armenia’s entire energy sector was privatized by Russia. We saved the Armenian Nuclear Power Plant, built during the Soviet era and producing half of the country’s electricity, despite Western demands for its closure. There was even a time when Yerevan paid the salaries of Russian soldiers and officers from its own budget so the base could remain when Moscow was not making payments.”
He further claimed that the plan to place the Zangezur corridor under US control was not new; a similar plan was signed in 2001 at Key West between then-leaders Robert Kocharyan and Heydar Aliyev, but Russia had blocked it.
Platonkin concluded by saying: “NATO is already in the Caspian. Militarily, Azerbaijan is a part of Turkey, and Turkey is a NATO country. Meanwhile, our people are still muttering, ‘Britain wants to infiltrate the Caspian.’ They are already there! Let us impose a tax on the money Azerbaijani workers send home, just as Trump did to the Mexicans. Let’s see how they treat us then.”
Notes:
[1] Rail gauges are not standardized globally. 1435 mm (Standard Gauge): Used in Turkey, most of Europe, the US, and China. 1520 mm (Russian Gauge): Used in former Soviet Union countries (Russia, Azerbaijan, Georgia, Armenia, etc.). This discrepancy creates a logistical bottleneck, as trains must wait at borders for their wheelsets (bogies) to be swapped.
[2] The 1940 Anglo-French Plan to Bomb Baku (Operation Pike): A secret military plan prepared by Britain and France in the early stages of WWII (during the period when Germany had not yet attacked the USSR, but had signed a non-aggression pact). The Allies planned to bomb the oil fields in Baku to sever the flow of Soviet oil to Nazi Germany. The plan was shelved following the German invasion of France.
Diplomacy
Greece’s Marinakis says paying Hormuz transit fees beats enduring Red Sea shipping crisis detour
Evangelos Marinakis, one of Greece’s leading shipowners, has announced that he is prepared to pay up to $200,000 per transit to keep the Strait of Hormuz open to civilian maritime traffic.
Speaking to the Financial Times, Marinakis stated that paying a transit fee would be a far better option for him than having the strait closed to navigation.
As the chairman of Capital Maritime Group, which controls a fleet of 185 vessels including approximately 35 tankers, Marinakis emphasized that shipowners have been forced to use alternative routes around the Cape of Good Hope for years due to attacks launched by the Houthis in the Red Sea, a detour that has generated substantial additional costs.
The Greek shipowner indicated that paying a transit fee of $100,000 or $200,000, depending on the size of the cargo or the vessel, is far more reasonable than enduring the current logistical challenges. He added that such payments could offset all the losses experienced so far.
Following US strikes on Iran and the blockade of the Strait of Hormuz, the Tehran administration had introduced transit fees of up to $2 million for certain vessels transiting the waterway.
In May, Iran announced the establishment of a state agency tasked with managing the Strait of Hormuz. It was stated that the institution in question would provide real-time updates regarding maritime activities in the waterway.
Ebrahim Azizi, the chairman of the Iranian Parliament’s National Security and Foreign Policy Commission, had noted that only commercial vessels and countries cooperating with Iran would be able to benefit from the facilities provided under this “professional mechanism.”
US President Donald Trump has explicitly opposed the imposition of transit fees in the Strait of Hormuz. In a statement on the matter, Trump said, “We want the strait to be open. We do not want any transit fees to be charged. This is an international waterway.”
On the other hand, the draft text of a planned 60-day ceasefire extension agreement between the parties stipulates that the Strait of Hormuz will remain open without any transit fees being demanded.
According to the draft details reviewed by Axios, the US in return commits to lifting the blockade it has imposed on Iranian ports. The Iranian Ministry of Foreign Affairs, however, announced that the management of the Strait of Hormuz has been excluded from the scope of the agreement with the US, asserting that the issue will be addressed solely by littoral states.
Diplomacy
Pashinyan promises aid to farmers hit by Russian import restrictions
Armenian Prime Minister Nikol Pashinyan has pledged compensation for Armenian farmers affected by restrictions on exports to Russia.
According to Sputnik Armenia, Pashinyan made the announcement during an election campaign meeting in the Gegharkunik region.
Speaking at the event, Pashinyan said the subsidies would be designed to offset losses incurred by producers.
The prime minister also acknowledged that some Armenian products had failed to meet required quality standards, adding that such companies would receive support aimed at improving product quality.
Addressing alternative markets for Armenian exports, Pashinyan said several Armenian business delegations were already engaged in negotiations abroad.
He added that Armenia had received offers for the purchase of roses as well as fresh fruits and vegetables.
Pashinyan argued that Armenia’s agricultural output was not particularly large, describing this as an advantage under current circumstances. According to the prime minister, “a respected supermarket chain in Europe” would be capable of selling the entire volume of these products on its own.
Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) imposed temporary restrictions on imports of stone fruits and grapes from Armenia effective July 2.
The ban covers cherries, sour cherries, apricots, plums, peaches and nectarines, among other products.
On the same day, a temporary suspension was also introduced on certification procedures for live fish shipments from Armenia. Russian authorities had previously restricted the entry of flower products originating from Armenia into the Russian market.
In addition, Russia’s Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor) halted the import of all consignments of Jermuk mineral water from Armenia.
In a statement, the agency said levels of bicarbonate, chloride and sulfate ions in the mineral water exceeded established limits and could mislead consumers regarding the product’s medicinal properties.
The Russian regulator argued that the growing number of violations stemmed from the abolition of Armenia’s Agriculture Ministry and the transfer of its responsibilities to the Economy Ministry.
Rosselkhoznadzor further stated that Armenia’s Economy Ministry was experiencing structural problems and was unable to adequately perform the supervisory functions assigned to it.
Diplomacy
Zelenskyy urges US to grant Ukraine license to produce Patriot missiles
Ukrainian President Volodymyr Zelenskyy said he has asked the United States to grant Ukraine a license to manufacture missiles for the Patriot air defence system.
In a post on social media platform X, Zelenskyy argued that current US production of missile defence interceptors is insufficient and could contribute to crises in different parts of the world.
“Producing 60-65 missiles a month is nothing compared with the challenges we face today. This is no secret, and Russia knows it as well,” Zelenskyy wrote. “We need to expand production. As I requested from the previous US administration, I am asking the current administration to grant Ukraine a license to produce Patriot missiles.”
Zelenskyy said US companies possess advanced technologies that are not available in Ukraine, while Kyiv could contribute its extensive battlefield experience in return.
He also argued that granting such a license would benefit not only Ukraine, but also the Middle East and any country Washington chooses to support.
Washington pledges to maintain defence support
Zelenskyy’s remarks came a day after US Defense Secretary Pete Hegseth said on May 30 that Washington would continue supporting Ukraine’s defence capabilities and ensure military shipments to Kyiv continue.
“We want them to be able to defend themselves, and we will find a way to help them do that,” Hegseth said.
Several days earlier, Yuriy Ihnat, spokesperson for the Ukrainian Air Force, warned that the country’s air defence forces were experiencing a shortage of missiles.
“Due to certain supply problems, we are practically at starvation levels when it comes to missiles today,” Ihnat said.
Concerns persist over air defence missile stocks
In April, Zelenskyy warned that Ukraine’s stockpile of air defence missiles could be exhausted at any moment.
He said that under current conditions, air defence missiles were more critical for Ukraine than the air defence systems themselves.
Highlighting what he described as a critical shortage of Patriot missiles, Zelenskyy said: “We are facing a deficit now that could hardly be worse.”
Concerns that Ukraine could face a severe shortage of US-made air defence missiles had previously been reported by Reuters.
The situation was expected to worsen as the United States and its allies depleted significant portions of their arsenals during tensions with Iran, a point Zelenskyy also underscored.
In a separate statement in January, Zelenskyy said Ukraine lacked sufficient missiles for both US- and European-made air defence systems.
The Ukrainian leader said he had been forced to personally secure every package of missiles from European countries and the United States.
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