The situation might deteriorate in mountainous Karabakh

The Economist recently published an article about the possible deterioration of the situation in the mountainous Karabakh. The publication suggests that the two sides that are in conflict – Armenia and Azerbaijan – are increasing their military budgets. In 2013, Azerbaijan spent $3.7 billion USD, whereas Armenia increased it military budget by 25% and now its military budget is at $450 million USD. The Azeri frequently talks of a possible military solution to the conflict, whereas Armenians promise to punish the “aggressor.” In the October 9 presidential election in Azerbaijan, Ilham Aliyev will win again. However, The Economist does not exclude the possible escalation of the situation.