The unresolved conflict between Armenia and Azerbaijan over Nagorno-Karabakh is considered the most daunting issue for South Caucasus’ security. Since 1994, when a cease-fire was reached between the parties, many attempts have been made to find a political solution to this conflict. Last year’s Russia-Georgia war considerably changed the geo-political situation and renewed efforts of regional and nonregional actors to reach a comprehensive solution. The Moscow Declaration signed in the aftermath of the war by the Russian, Armenian and Azerbaijani presidents is an example of the increasing Russian interest to play a more active and persistent role in this process. At the same time the recognition of Abkhazia and South Ossetia by Russia demonstrated again that the current stalemate of any frozen conflict can easily be transformed into a new cycle of violence. Therefore the EU and the United States are more interested in resolving this conflict, now especially taking into consideration the geo-strategic and geo-economic parameters of the Caspian region. In this context Turkey, as a transit energy country, has a beneficial impact on the whole region, serving as a bridge to the West through its unique location. Supported by the U.S. and the EU, Turkey is trying to strengthen its political and economic influence in the South Caucasus and is attempting to transform its relations with Armenia.