Although Armenia and Azerbaijan reached consensus on a draft peace agreement in March, Baku continues to insist on several additional conditions before formally signing the deal.
Azerbaijan demands that Yerevan amend its constitution to remove references to Azerbaijani territory, among other conditions.
One of the main sticking points remains the so-called Zangezur Corridor, which would connect Azerbaijan proper to its exclave, Nakhchivan, via Armenian territory.
Armenia refuses to use the term “Zangezur Corridor,” arguing that it has irredentist connotations on sovereign Armenian territory, known as Syunik.
Azerbaijan has insisted that the corridor should not be placed under Armenia’s total control, expressing concerns that Yerevan cannot be trusted to guarantee unfettered access.
Likewise, Armenia categorically opposes transferring control of the route to any third party.
The 32-km-long corridor has become a significant obstacle to achieving lasting peace between Armenia and Azerbaijan.
“They are arguing over 32 kilometers of road, but this is no trivial matter. It has dragged on for a decade – 32 kilometers of road,” Barrack told journalists during a briefing hosted in New York.
“So what happens is that America steps in and says: ‘Okay, we’ll take it over. Give us the 32 kilometers of road on a hundred-year lease, and you can all share it’.”
Barrack’s comments mark the first official confirmation that the Trump administration offered to manage the corridor through a private US commercial operator, which would serve as a neutral guarantor.
A recent report by Carnegie Endowment suggested that the plan is modelled on an earlier European Union proposal, which would put a US logistics firm in charge of managing and monitoring cargo transit along the route, sharing data transparently with all parties.
The report noted that the proposal draws on precedents of international oversight in Georgia’s breakaway regions, aiming to address Baku’s demand for robust, long-term security guarantees while preserving Yerevan’s sovereignty over the corridor.
Meanwhile, Turkey has quietly urged Baku to sign the peace agreement, reminding Azerbaijani officials of shifting regional dynamics, such as Iran’s waning influence.
A regional source familiar with the negotiations told Middle East Eye that it was Turkey that originally proposed the idea of a private company, approved by both Armenia and Azerbaijan, managing the corridor.
“However, the Armenian side demanded that the company should also work on the Nakhchivan side of the corridor, which was unacceptable for Baku,” the source said.
The conflict between Armenia and Azerbaijan dates back to the 1993 Nagorno-Karabakh war, when Armenian forces seized the disputed enclave, recognised as Azerbaijani territory by the United Nations, following the collapse of the Soviet Union.
After a bloody six-week war in late 2020, Azerbaijan launched a military operation in September 2023 to retake Nagorno-Karabakh, leading to a ceasefire agreement. Most ethnic Armenians fled, and the breakaway region was officially dissolved on 1 January 2024.
Turkey’s own normalisation process with Armenia is closely tied to the prospect of a peace deal between Azerbaijan and Armenia.
Turkish officials view Armenia as a vital link in the so-called Middle Corridor, which would directly connect Turkey to Central Asia. Turkish companies are also eager to participate in potential infrastructure projects within Armenia.
Despite Baku’s objections, Turkish President Recep Tayyip Erdogan hosted Armenian Prime Minister Nikol Pashinyan last month, marking the first official visit to Turkey by an Armenian leader.
