US ‘Zangezur’ Corridor Lease Proposal Rejected by Armenia

A dramatic American proposal to lease the so-called “Zangezur corridor” has met a cold reception in the South Caucasus, complicating efforts to finalize a peace treaty between Armenia and Azerbaijan. The plan, put forward by the United States, was publicly ignored by Baku and flatly rejected as “unacceptable” by Yerevan, despite Washington’s hopes it could resolve a key point of contention.

U.S. Ambassador to Turkey, Tom Barrack, unveiled the initiative at a press briefing, suggesting a bold solution to the long-standing dispute over a 32-kilometer stretch of road. “America steps in and says: ‘Fine, we’ll take it. Give us the 32km of road on a 100-year lease, and you can all use it’,” Barrack stated. His comments were followed by an announcement from U.S. President Donald Trump, who declared that Armenia and Azerbaijan were “very close” to reaching a successful conclusion to their peace negotiations.

The Armenian government swiftly dismissed the idea. Nazeli Baghdasaryan, spokesperson for the Prime Minister, emphasized that Armenia will only discuss the unblocking of regional infrastructure in the context of its own sovereignty and jurisdiction. “We cannot discuss any other logic,” she asserted, adding that Armenian law only permits the leasing of agricultural land, making the ambassador’s proposal legally impossible.

While Azerbaijani officials have not commented on the American offer, the corridor remains a central interest for President Ilham Aliyev. The route also holds immense strategic value for neighboring Turkey, which seeks a direct land link to Azerbaijan and Central Asia. Turkish President Recep Tayyip Erdoğan has framed the corridor as part of a “geoeconomic revolution” that would position Turkey as a critical hub for trade between Europe and China.

According to Konstantin Zatulin, a senior Russian lawmaker, the American proposal is likely part of a pre-arranged deal between Armenia and Azerbaijan. He suggested that both nations are intentionally creating friction with Moscow to justify bringing in the United States as a new regional arbiter, bypassing Russia, which was initially expected to oversee the route. “I think the U.S. ambassador in Turkey really said what is being negotiated,” Zatulin concluded.

Political analyst Mikael Zolyan suggests a deal remains feasible, arguing Yerevan’s sharp response was aimed at the sensitive “leasing” terminology rather than the concept of third-party oversight. “The U.S. wants to find a compromise where a third party controls the road. This seems acceptable for Armenia and Azerbaijan,” he explained. For Yerevan, a successful deal could unlock peace, normalize relations with Turkey, and generate transit revenue. However, a comprehensive peace treaty remains a distant prospect, as Baku’s other demands, such as controversial amendments to Armenia’s constitution, present formidable long-term obstacles.