Expressions of deepening frustration and pessimism, particularly on Azerbaijani side, following failure of much-anticipated late June Kazan summit to produce significant progress on resolution of Nagorno-Karabakh conflict, reads the report issued by International Crisis Group. The level of risk in Nagorno-Karabakh was estimated as 9 out of 12.

The review on Armenia mentions that representatives from 3-party ruling coalition and opposition Armenian National Congress (HAK) formed official working group on July 18 to host series of discussions regarding political reform. It also says that Defence Ministry announced U.S., Armenian agreement to hold first ever joint military exercises.

Report on Azerbaijan says about armed clash between Azerbaijani and Iranian border guards, apparently result of accidental crossing into Iranian territory, which left Azerbaijani guard dead.

 “Several senior members of banned Islamic Party of Azerbaijan (AIP), including Chair Movsum Samadov, went on trial on terrorism-related charges; party activists argue Samadov actually detained over speech criticising ban on head scarves in schools. Authorities denied request from AIP to stage rally 5 July. 6 opposition activists went on trial 13 July over April anti-govt protest in Baku; another opposition activist sentenced 22 July to 2 years jail for illegal possession of weapons. 29th session of Caspian Working Group met in Moscow,” reads the report.