Azerbaijan Files Two Interstate Claims Against Armenia

Azerbaijan has submitted two interstate arbitration claims against Armenia to the Permanent Court of Arbitration in The Hague. This was reported to Sputnik Armenia by international arbitration expert Sarkis Grigoryan.

“Arbitral tribunals have already been appointed in relation to these cases. This means that the parties have designated their arbitrators and have a presiding arbitrator. The first sessions in both cases have already taken place. Both tribunals have accepted the procedures and arbitration rules, outlining how the cases will proceed, how the proceedings will be examined, how evidence will be presented, witness testimonies will be provided, expert opinions will be introduced, and so on. Currently, both cases are ongoing,” he stated, adding that according to the established timeline, the cases are expected to conclude by early 2027.

According to Grigoryan, the claims have not yet been declassified. Armenia has not made any public statements regarding them. Meanwhile, Azerbaijan has already released several official statements on various occasions, indicating its intention to hold Armenia accountable for environmental degradation and biodiversity destruction in Nagorno-Karabakh.

The first claim, submitted in January 2023, falls under the framework of the Bern Convention on the Conservation of European Wildlife and Natural Habitats. “This, of course, is absurd. However, Azerbaijan has also claimed that it has gathered evidence of environmental destruction following the 2020 war. In essence, it has stated that its interstate claim is based on evidence collected after the 2020 war,” Grigoryan noted, adding that in this context, one of Armenia's defensive tools should be the fact that it is Azerbaijan that caused environmental harm by destroying nature as a result of the war. However, this remains purely a professional opinion, as Armenia’s official position on Azerbaijan’s claim is still unknown.

Grigoryan indicated that Azerbaijan has also cited a UN report from 2022 as evidence, alleging that Armenia has carried out deforestation. “Azerbaijan points to three areas in Artsakh: the 'Damaghli 1' mining site, which I presume is Drmbon, the ‘Galacha’ hydroelectric power station in Lachin, and the Chardakhli mining site, which I assume is Kashen. In their opinion, the UN has condemned Armenia for allegedly harming the environment in Nagorno-Karabakh by exploiting these mining sites. It is also stated that the development of Armenia's mining industry has led to chemical contamination of rivers, waters, and soils in the region,” he presented.

Moreover, he claims that Azerbaijan has taken an unprecedented step by evaluating the extent of the environmental damage caused and presenting it to the international arbitration court as a claim. However, there is currently no precedent for such a case in international law. Information about the damages calculated by Azerbaijan and the compensation demanded from Armenia remains confidential. Sarkis Grigoryan does not rule out that it may be presented at the end of the trial based on some international expert assessment.

The second claim was submitted to the Permanent Court of Arbitration in The Hague by Azerbaijan in February 2023, under the framework of the Energy Charter Treaty. According to Sarkis Grigoryan, Azerbaijan asserts that Armenia has prevented it from using the hydro, wind, and solar energy resources in the region and has harmed existing energy transit facilities such as the gas pipeline connecting Evlakh to Nakhchivan. “In other words, Azerbaijan claims that Armenia is restricting the provisions of the treaty, under which Azerbaijan had the right to lay a gas pipeline between Nakhchivan and Evlakh,” the expert explained, expressing the opinion that Armenia could present a counterclaim regarding Azerbaijan's closure of the gas pipeline supplying Artsakh and also raise a counter-argument based on the fact that the Republic of Artsakh has not ratified these international conventions and that Armenia cannot be held responsible, as it has not recognized the Republic of Artsakh.

“In this case, we have a legal advantage, and using international legal tools, I believe not only can we dismantle the entire claim, but also deprive the tribunals of their position from the very beginning, preventing the tribunals from proceeding further, rejecting the opposition, and thereby shortening the entire case,” the expert suggested. In his opinion, the progress of the case will depend on how the Armenian government shapes its defense in these matters.