YEREVAN.- Peaceful settlement of the Karabakh conflict is in the interests of the region and Europe, UK Foreign Office Minister for Europe David Lidington said in Yerevan on Tuesday.

He held a joint press conference following the meeting with Armenian Foreign Minister Edward Nalbandian.

The UK wants talks to restore peace between Armenia and Azerbaijan, he said.

Asked whether UK fears that Azerbaijan is using income from investments of the British companies to increase its military budget, Lidington said the fact that UK has capital in Azerbaijan proves his country is interested in promoting reconciliation and stability in the South Caucasus.

The UK has good relations both with Armenia and Azerbaijan and also has commercial interests which will contribute to reconciliation, Lidington believes.

As to the question why the UK gives priority to the nations’ right to self-determination when it comes from her interest, as in the case of Kosovo and the Falkland Islands, and in other cases takes a different approach, Lidington said Kosovo was the subject of the UN Resolution 1244. The resolution set rules according to which Kosovo issue had to be settled.

The act of self-determination is one of the principles established by the OSCE Minsk Group for the peaceful resolution of the Karabakh conflict and, of course, it should be considered along with other principles, he added.