[Joint House and Senate Hearing, 118 Congress]
[From the U.S. Government Publishing Office]


                        SUPPORTING ARMENIA'S DEMOCRATIC AND 
                                WESTERN FUTURE
=======================================================================

                                HEARING

                               BEFORE THE

            COMMISSION ON SECURITY AND COOPERATION IN EUROPE

                        U.S. HELSINKI COMMISSION

                     U.S. HOUSE OF REPRESENTATIVES

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             SECOND SESSION

                               __________

                           SEPTEMBER 10, 2024

                               __________

 Printed for the use of the Commission on Security and Cooperation in 
                                 Europe

                              [CSCE118-8]
                              
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                       Available via www.csce.gov
                       
                               __________

                   U.S. GOVERNMENT PUBLISHING OFFICE                    
56-696                      WASHINGTON : 2024                    
          
-----------------------------------------------------------------------------------                           
                      
            COMMISSION ON SECURITY AND COOPERATION IN EUROPE

                        U.S. HELSINKI COMMISSION

             U.S. HOUSE                            U.S SENATE

JOE WILSON, South Carolina Chairman	BENJAMIN L. CARDIN, Maryland Co-	
						Chairman
STEVE COHEN, Tennessee Ranking 		ROGER F. WICKER, Mississippi
    Member					Ranking Member
ROBERT B. ADERHOLT, Alabama		RICHARD BLUMENTHAL, Connecticut
EMANUEL CLEAVER II, Missouri		JOHN BOOZMAN, Arkansas
RUBEN GALLEGO, Arizona			TIM SCOTT, South Carolina
RICHARD HUDSON, North Carolina		JEANNE SHAHEEN, New Hampshire
MICHAEL LAWLER, New York		TINA SMITH, Minnesota
VICTORIA SPARTZ, Indiana		THOM TILLIS, North Carolina
MARC A. VEASEY, Texas			SHELDON WHITEHOUSE, Rhode Island

                            EXECUTIVE BRANCH
                   Department of State - Erin Barclay
               Department of Defense - Celeste Wallander
                  Department of Commerce - Don Graves
                         
                         C  O  N  T  E  N  T  S

                              ----------                              
                                                                   Page

                             COMMISSIONERS

Hon. Joe Wilson, Chairman, from South Carolina...................     1

Hon. Ben Cardin, Co-Chairman, from Maryland......................     3

Hon. Roger Wicker, Ranking Member, from Mississippi..............     5

Hon. Steve Cohen, Ranking Member, from Tennessee.................     5

Hon. Marc Veasey, from Texas.....................................    15

Hon. Andy Harris, from Maryland..................................    17

Hon. Emanuel Cleaver II, from Missouri...........................    19

Hon. Victoria Spartz, from Indiana...............................    20


                               WITNESSES

Dan Baer, Senior Vice President for Policy Research, Carnegie 
  Endowment for International Peace and Former U.S. Ambassador to 
  the OSCE.......................................................     7

Olesya Vartanyan, South Caucasus Security Expert.................     8

Tigran Grigoryan, President and Founder, Regional Center for 
  Democracy and Security, Yerevan, Armenia.......................    10


 
           SUPPORTING ARMENIA'S DEMOCRATIC AND WESTERN FUTURE

                              ----------                              

 COMMISSION ON SECURITY AND COOPERATION IN 
                                    EUROPE,
                          U.S. HELSINKI COMMISSION,
                                  HOUSE OF REPRESENTATIVES,
                                       Tuesday, September 10, 2024.

    The hearing was held from 2:30 p.m. to 3:40 p.m., Room 419, 
Dirksen Senate Office Building, Representative Joe Wilson [R-
SC], Chairman, Commission for Security and Cooperation in 
Europe, presiding.

    Committee Members Present: Representative Joe Wilson [R-
SC], Chairman; Senator Ben Cardin [D-MD], Co-Chairman; Senator 
Roger Wicker [R-MS], Ranking Member; Representative Steve Cohen 
[D-TN], Ranking Member; Representative Marc Veasey [D-TX]; 
Representative Andy Harris [R-MD]; Representative Emanuel 
Cleaver II, [D-MO]; Representative Victoria Spartz [R-IN]; 
Senator Jeanne Shaheen [D-NH]; Senator Richard Blumenthal [D-
CT].
    Witnesses: Dan Baer, Senior Vice President for Policy 
Research, Carnegie Endowment for International Peace and Former 
U.S. Ambassador to the OSCE; Olesya Vartanyan, South Caucasus 
Security Expert; Tigran Grigoryan, President and Founder, 
Regional Center for Democracy and Security, Yerevan, Armenia.

  OPENING STATEMENT OF JOE WILSON, CHAIRMAN, U.S. HOUSE, FROM 
                         SOUTH CAROLINA

    Chairman Wilson: I am grateful for our colleagues to be 
here on this important hearing on Armenia, a country that 
stands at a critical crossroads. The United States has a unique 
and crucial role to play in supporting the Armenian future, a 
future rooted in peace, democracy, and a stable region free 
from the malign influence of those who seek to destabilize it.
    I have been so impressed by the people of Armenia with my 
second and third visits to Yerevan this year. Armenia is facing 
immense challenges, both internal and external. The recent 
history of this proud nation is one of struggle and resilience. 
The Armenian people, whose ancestors have weathered centuries 
of adversity, have never wavered in their pursuit of freedom 
and self-determination. Today they face new challenges, 
challenges that arise from regional tensions, economic 
instability, and the corrosive effect of Putinesque influence, 
which has long sought to perpetuate division and conflict in 
the South Caucasus.
    Despite these challenges, during the recent CODEL to the 
country I was struck by the remarkable resilience of the 
Armenian people. There is a strong and growing societal 
consensus in Armenia, a desire to turn westward, to fully 
embrace democratic values, and to build a future of alignment 
with the free world. This consensus is driven by the clear 
recognition that Armenian true potential can only be realized 
through greater integration with the West--through deepening 
ties with Europe, the United States, and regional allies who 
share a vision of stability and prosperity.
    Armenia has made brave steps to assert its independence and 
distance itself from the grip of the war criminal Putin's 
influence. These decisions have not been easy, especially in a 
region where war criminal Putin's influence is ever present. 
Moscow has repeatedly demonstrated that it prefers to see 
Armenia and its neighbors mired in conflict, a strategy 
designed to maintain its dominance. War criminal Putin's 
actions, including its meddling in the Nagorno-Karabakh 
conflict and its efforts to exploit divisions in the region, 
are aimed at preventing Armenia and the South Caucasus from 
moving toward lasting peace and prosperity as Putin seeks to 
recreate the failed Soviet Empire, which oppresses Russians as 
it benefits oligarchs.
    The Armenian people want something different. They want 
peace. They want democracy. They want to build a future that is 
free from outside interference, a future that can thrive as a 
sovereign nation in a stable and secure region. This is where 
the United States has a crucial role to play. We must be there 
to support Armenia on its journey toward democracy, to help 
foster the economic and political conditions that will allow 
Armenia to stand tall as a full partner in the free world and 
not a puppet of Soviet dictatorships.
    As chairman of the Turkiye Caucus, normalization of ties 
between Armenia and--is essential to this vision and mutual 
benefit to both countries. I am the Co-Chair of the Turkiye 
Caucus and have been for years, and I just so appreciate 
Turkiye as a member of NATO and a great ally for freedom and 
democracy in the world. The time has come for Turkiye to 
respond in kind to Armenia's call for dialogue and 
normalization.
    It is also imperative that Azerbaijan join in the effort to 
build lasting peace in the region. The war between Armenia and 
Azerbaijan has taken a toll on both nations, but we believe 
that peace is not only possible; it is essential. Stability for 
Azerbaijan is so beneficial, with economic ties to Europe which 
Putin opposes. I was grateful this weekend to be with President 
Ilham Aliyev as he spoke to the Forum di Cernobbio, which I 
attended with Senator Lindsey Graham and Co-Chairman--chairman 
of the Foreign Affairs Committee--Ben Cardin.
    For Armenia to have a peaceful and prosperous future, for 
Azerbaijan to thrive, and for the entire South Caucasus to move 
forward, both Turkiye and Azerbaijan should take meaningful 
steps toward reconciliation with Armenia. The United States 
stands ready to assist in this process, but our support alone 
is not enough. It will require the concerted efforts of all 
stakeholders in the region.
    The future of Armenia, and indeed the entire region, 
depends on what happens in the next few months and years. If 
the region remains locked in a cycle of conflict and division, 
we will see more suffering, more instability, and more 
opportunities for malign actors like Putin to exploit these 
divisions. However, if we seize this moment--if we push for 
peace, normalization, and greater democratic governance--we can 
unlock a future of unprecedented peace and prosperity for the 
South Caucasus.
    There is clear bipartisan support for the United States to 
step up its support for Armenia's assistance, both economic and 
political. We will help solidify Armenian democratic gains, 
strengthen its institutions, and provide a bulwark against 
external threats. At the same time, we must encourage other 
partners in the region, especially Turkiye and Azerbaijan, to 
recognize their long-term interests are best served by a 
peaceful and prosperous South Caucasus, one where borders are 
secure, economies are thriving, and democracy is flourishing.
    Additionally, I want to emphasize the importance of 
cultural and people-to-people exchanges. The Armenian diaspora 
in the United States has been a powerful force in strengthening 
ties between our two nations. By fostering these relationships 
and building up shared values, we can create a deeper and more 
lasting partnership. Armenian Americans have contributed 
immensely to our country, and their success is a testament to 
the potential of Armenia itself, as also has been achieved by 
Turkish Americans for decades.
    In closing, it is critical Armenia have the--has made great 
strides in pulling away from the shadow of Putin's influence 
and toward a brighter future. The courage of the Armenian 
people deserves our admiration and our support. It is incumbent 
upon us as members of Congress and as leaders of the free world 
to stand with Armenia at this critical moment. The future of 
Armenia is bright, but only if we work together to ensure 
peace, democracy, and prosperity take root and flourish. Thank 
you, and I look forward to our testimony today.
    Now I am happy to recognize Senator Ben Cardin as the 
immediate past Co-Chair.

 STATEMENT OF BENJAMIN CARDIN, CO-CHAIRMAN, U.S. SENATE, FROM 
                            MARYLAND

    Senator Cardin: The immediate chair, the current Co-Chair, 
but it is good. It is all good.
    Let me welcome our witnesses here today. This hearing is 
one that we really were anxious to get on our calendar after 
our visit to Armenia. Senator Wicker, Congressman Wilson, 
myself, others were impressed by how Armenia has changed in a 
relatively short period of time, and how they are struggling 
with the challenges of their region, and how the United States 
can play a more important role in not only helping Armenia on a 
path towards a democratic state with its own relations closer 
to the West but how it affects the region generally. Therefore, 
we are very pleased that we have such a distinguished group of 
witnesses.
    There is no question that the Armenian diaspora has a very 
close relationship with Armenia, and we hear about that 
frequently. Therefore, there is some natural ties in this 
country that would have us focus on the issues of Armenia.
    It is a country that wants to determine its own future. 
That is what it wants to do. It is difficult because they have 
external factors that make that a challenge for them to be able 
to do that. They thirst for democracy and good governance and 
after so much domination under the Soviet Union and now Russia, 
that has been a real challenge as to how they can reach that 
plateau.
    It is important that we acknowledge not only these 
immediate threats, but also broader geographical currents at 
play and the role the United States can play in helping to 
secure an independent, democratic, and prosperous future for 
the Armenians and the region. First, I want to address the 
direct security threat posed by Azerbaijan.
    Azerbaijan recently came in and took over the Nagorno-
Karabakh area and did ethnic cleansing, requiring the people to 
leave or face death or imprisonment. This battle has been going 
on for a long time. This is nothing new. However, they not only 
decided to displace a whole ethnic group, putting at risk the 
cultural facilities, and the cultural history of the region; 
they decided to go into Azerbaijan [sic; Armenia] and take part 
of Azerbaijan [sic; Armenia] with no indication that they are 
going to give up that territory. Now, that territory is very 
strategic. We had a chance to see it. It is the highlands. One 
can only believe that there is a reasonable risk that 
Azerbaijan is not going to stop where they are right now and 
that they are going to make further incursions for the corridor 
to reconnect the two parts of their country. That would either 
divide or eliminate a good part of Azerbaijan's [sic; 
Armenia's] sovereignty by force.
    Azerbaijan [sic; Armenia] has relied upon Russia for its 
defense, basically, certainly for its border security, and what 
did Russia do? They told Azerbaijan, come on in, take it over. 
Russia is still present in Armenia. How do you--are able to 
have security for your country if the person who enabled-- the 
country that enabled your adversary to take over part of your 
country is who you depend upon for security? I know they are 
trying to get some of the Russians' presence out of there, but 
it is pretty intrusive into their country right now. How does 
that happen?
    Then you look at the neighborhood. They are in a tough 
neighborhood.
    They have Russia. We have already talked about how Russia 
is not reliable for Armenia. They have Azerbaijan.
    We already talked about Azerbaijan's desire to not only 
cleanse Nagorno-Karabakh but to take over perhaps the whole 
corridor or southern part of Armenia.
    Then they have Iran as a neighbor. Iran's not a reliable 
partner. They do some commerce with Iran. We saw oil trucks. We 
saw a lot of activity by Iranian trucks when we were there, but 
that is not a reliable partner to have. We all know that.
    Then there is Turkey, which we are always hoping that 
Armenia and Turkey would normalize their relations. The border 
is closed right now. The border is close to Azerbaijan. The 
border is closed to Turkey. There are limited crossings to 
Russia and Iran. Therefore, we need to be engaged so that 
Armenia can defend itself and make its own decisions. That 
means getting Russia out of Armenia. It also means normalizing 
the relationship between Azerbaijan and Armenia, and 
particularly Armenia and Turkey, which is absolutely essential 
to do, so that there are other avenues available for commerce. 
The country is being strangled right now. Would you invest in 
this country in a manufacturing business if you depended upon 
international commerce? You do not even know if you have any 
borders that you can--that you can open up to transport your 
goods. We have to free Armenia so that it can control its own 
future, and that means we have to figure out ways to move 
forward with the peace process with Azerbaijan and for more 
normal relations with Turkey. Who is stopping that? Russia.
    Therefore, we welcome our panelists today on how the United 
States can play an important role in Armenia so it can 
determine its own future, it can develop as a democratic state, 
one that has good governance and respects the rights of its 
citizens and can be a leading partner in security in the 
region. I look forward to our witnesses.
    Chairman Wilson: Thank you very much, Chairman Ben Cardin.
    We now proceed to Congressman--or excuse me, U.S. Senator 
Roger Wicker of Mississippi.

    STATEMENT OF ROGER WICKER, U.S. SENATE, FROM MISSISSIPPI

    Senator Wicker: Thank you. I do agree we should get on with 
the witnesses if we possibly can. I walked in in the middle of 
the distinguished chairman's remarks, and then I was able to 
hear all of Mr. Cardin's opening statement. Let me just say 
that I subscribe to their comments completely and 
enthusiastically. Yes, there is a lot to be learned from 
actually visiting a country on the ground and seeing how narrow 
that slip of land is between Azerbaijan and the Nagorno-
Karabakh area, as well as Turkiye.
    I do want to congratulate our friends in Armenia for 
looking to the West and looking toward the democratic countries 
of this world for leadership and friendship. We wish our very 
best to the entire region, our NATO allies in Turkiye, and our 
friends in Azerbaijan also. However, having been to Armenia and 
having gotten a real sense of their desire for Western values 
for self-determination, to democracy, I can only say that I 
look forward to increasing our friendship.
    If there is a record, Mr. Chairman, I have an opening 
statement that I will submit. However, I want to thank both of 
the gentlemen who have--who I have heard for their outstanding 
opening statements. Thank you, sir.
    Chairman Wilson: Thank you very much, Senator. Senator 
Wicker, your CODEL was just so important to all of us to have 
the opportunity to meet with the people of Armenia.
    As a continuation of the bipartisanship here today, I would 
like to recognize the Co-Chair, Steve Cohen of Tennessee.
    Representative Cohen: Thank you, Mr. Chair.

      STATEMENT OF STEVE COHEN, U.S. HOUSE, FROM TENNESSEE

    Firstly, when I came in, I heard Mr. Wilson talking about 
his being a Co-Chair of the Turkey Caucus, and he is. I am the 
other Co-Chair. [Laughter.] I have been that Co-Chair for the 
18 years I have been in Congress, and all of my friends from 
Armenia know it, and they have expressed feelings about it for 
18 years. My position had been that Turkey was a good ally of 
the United States, a friend of Israel, and an important NATO 
member, and while it looked like they had committed a 
genocide--and that is a serious thing, and I had difficulty 
with it--I supported Turkey because they were very, very, very 
insistent that they had different issues about Congress should 
not be a historian and Congress should not be a judge, et 
cetera, et cetera, et cetera.
    However, over these 18 years, I have come to not like 
Turkey so much. I will not call it by any other name than 
Turkey, because when it was Turkey, it was the land of Ataturk, 
and they tried to do some things that were good and bringing 
them into the 21st century, and it was a great--Ataturk's one 
of the great people of the 21st--the 20th century. We have 
written as a group to Turkish officials about their situation 
with Israel, where they have supported Hamas, and Hamas is a 
terrorist organization. If they think the [PKK] Kurdistan 
Workers' Party is a terrorist organization, they have not seen 
anything like Hamas. However, they want everybody to be against 
the PKK and the [YPG] The People's Defense Units and the 
yippie-ki-yay, and yippie-ki-yay is what I say to them these 
days.
    Erdogan went to Cairo, met with al-Sisi, and said the 
Muslim countries needed to come together in unity to smother 
and defeat Israel. That is not what Turkey used to be. It is 
not what we think of as being the Turkey that we knew when we 
became Co-Chairs. They are no longer necessarily our friends. 
They are not that trustworthy. They deal with the Russians. 
They deal with us. They deal with the Chinese. They deal with 
somebody. Be careful, Armenia, when you deal with Turkey. What 
my colleagues have said about Armenia and Azerbaijan being 
friends with Turkey, be careful.
    I yield back the balance of my time.
    Chairman Wilson: Co-Chairman, thank you very much. Multiple 
Co-Chair positions you have.
    Congressman Harris, do you have an opening statement?
    We really are very fortunate today to have outstanding 
participation: Senator Jeanne Shaheen, all the way from New 
Hampshire; and then--and Congressman Marc Veasey of Texas. We 
have--grateful to have with us Emanuel Clever of Missouri; and 
then Senator Blumenthal--Richard Blumenthal, Connecticut; and 
then--and Congressman Dr. Andy Harris of Maryland. Therefore, 
we are well represented.
    At this time, we will proceed with the witnesses, and we 
are under a--with so many outstanding people here, we are under 
a five-minute rule. Therefore,--and we will be following the 
five-minute rule with each of our witnesses, and then with each 
member of the Commission, with the understanding that the five 
minutes begins with me, and I will stick with that.
    With that, we are really grateful to have Dan Baer. Dr. 
Baer is the senior vice president for policy research at the 
Carnegie Endowment for International Peace and a former U.S. 
ambassador to the OSCE. Olesya Vartanyan, the South Caucasus 
security expert, we are so grateful to have you here. In 
addition, Tigran Grigoryan, the president and founder of the 
Regional Center for Democracy and Security in Yerevan.
    We will begin with Dr. Baer.

    TESTIMONY OF DAN BAER, SENIOR VICE PRESIDENT FOR POLICY 
RESEARCH, CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE AND FORMER 
                  U.S. AMBASSADOR TO THE OSCE

    Mr. Baer: Thank you to the Co-Chairs and to the members of 
the Commission for inviting me to testify today.
    If you had told me when I was serving as U.S. ambassador to 
the OSCE that in less than a decade Georgian democracy would be 
backsliding as Tbilisi drifted dangerously closer to Putin's 
embrace while Armenia would have a democratic awakening and be 
bravely trying to expand ties with Europe and the West, I would 
have thought you got your Caucasus countries mixed up.
    The human toll of the unfreezing of the conflict between 
Armenia and Azerbaijan, the hostilities in 2020 and again last 
year, has been significant and heartbreaking--not only those 
killed, but the more than 100,000 who have been displaced from 
their homes in which they grew up and made their lives, and 
from the place where their ancestors had made their homes for 
many centuries. There are no silver linings to war, but the 
political and security situation in the region is different 
today, and it would be a mistake not to ask us in a dynamic 
moment like this whether there are any new opportunities to 
build a more promising future in the wake of a tragic past.
    Despite the disappointment of Georgia's backsliding and 
Azerbaijan's ongoing authoritarianism, we should not overlook 
the hopeful signs in Armenia. We should ask ourselves: What can 
the United States and Europe do to support Armenia's democracy, 
future prosperity, and long-term security?
    First, support peace and normalization with Armenia's 
neighbors. Although it will be politically painful and Moscow 
may well try to sabotage it, normalization of relations between 
Yerevan and Ankara and a lasting peace between Armenia and 
Azerbaijan would benefit all three countries. If President 
Erdogan and Prime Minister Pashinyan can demonstrate vision and 
courage, Armenia-Turkey normalization could proceed--could 
proceed and may even lubricate a final peace deal with 
Azerbaijan. In addition to the security dividends, Armenia 
would be able to diversify its economic partners and reduce its 
dependence on Russia. Opening the Turkey-Armenia border would 
be a game-changer in this regard. Regional trade between 
Turkey, Armenia, Georgia, and Azerbaijan could support economic 
growth and jobs in each country and diversify transit routes 
for trade for others. The United States, working with the [EU] 
European Union and other partners, should offer political, 
diplomatic, and economic support to advance normalization and 
peace talks.
    Second, build technical skills, including those essential 
to trade and good governance. I will highlight just two. One, 
is the agricultural sector, where investment in modernization 
and storage can help both reduce dependence on Russia for 
exports and also make Armenia less vulnerable to price shocks 
on key imports like flour. Two, customs and border security 
professionalization, where training and modernization of 
processes and equipment will be essential to implementing peace 
and normalization agreements and can help Armenia take 
advantage of regional trade while curbing corruption threats.
    Third, the United States should explore partnering with the 
EU and other friends of Armenia to develop long-term, 
comprehensive security and defense partnerships along the model 
of the bilateral assistance agreements that several countries 
have developed with Ukraine in the last two years. These 
security arrangements could give confidence to Armenians as 
their leaders take difficult steps to reduce dependence on 
Moscow and carve an independent future.
    There will be some who will caution that a warmer embrace 
by the West could make Armenia less safe, not more. Just look 
at Ukraine, they will say. We must reject this dictator's proxy 
veto of our support for the aspirations of the people of 
Armenia or any other country. We should be clear the motivation 
behind the U.S. and partners' policy is to support the free 
future of the people of Armenia, not to score points against 
Moscow.
    Now is also a time to set realistic expectations. The road 
ahead will be long. Casting off the burdens of cultivated 
dependency demands long-term structural reforms and 
investments. It is the work of a generation and will extend 
beyond the term of a single leader. Moscow will likely try to 
retard progress. Armenians must be prepared to endure some cold 
winters. We must be prepared to sustain our support for the 
long term.
    Many of you on the dais today have been outspoken, 
consistent, principled supporters of Ukraine over the last two-
and-a-half years. Nowhere is the philosophical truth of the 
indivisibility of freedom and justice more practically 
demonstrable than in the fight against Russian imperialist 
tyranny that Ukraine is currently undertaking on behalf of its 
own people and, indeed, of all of us. Make no mistake, what 
happens in Ukraine has an impact on the freedom and future of 
the people of Armenia, the people of Georgia, the people of 
Azerbaijan, of Moldova, and on the stability and prosperity of 
Europe, including Turkey, for decades to come. If Putin is 
allowed to win, Armenia, Georgia, Moldova, and all Europeans--
all those who stand in defense of human dignity--will lose 
alongside Ukraine. Russia must be defeated. Ukraine must 
prevail. There is no alternate outcome that is--that is 
acceptable.
    Thank you again, Mr. Chair, and I look forward to questions 
from the members of the Commission.
    Chairman Wilson: Thank you so much, Ambassador.
    We are really grateful, again, Ms. Vartanyan, for you to be 
here. Thank you.

 TESTIMONY OF OLESYA VARTANYAN, SOUTH CAUCASUS SECURITY EXPERT

    Ms. Vartanyan: Good afternoon, Chairman Wilson and Co-
Chairman Cardin, and distinguished members of the Commission. 
Thank you for inviting me to testify at this important hearing.
    Today I am here to discuss the current state of peace talks 
between Armenia and Azerbaijan, and what is at stake if they 
collapse or hopefully succeed. I will also address the critical 
importance of supporting the ethnic Armenian refugees who fled 
an Azerbaijani military offensive in Nagorno-Karabakh a year 
ago.
    After three years of sporadic negotiations following the 
2020 war in Nagorno-Karabakh, Armenia and Azerbaijan now stand 
at a pivotal moment. We have a unique opportunity to achieve a 
historic peace agreement. Senior officials from both nations 
have indicated that they are close to finalizing a draft 
declaration which could significantly reduce the risk of 
renewed conflict and lay the foundation for normalizing the 
relations.
    While both governments assert that the agreement is nearly 
finalized, key disagreements remain. Chief among them is 
Azerbaijan's demand for amendments to Armenia's constitution. 
Baku insists that these changes are necessary to permanently 
eliminate any future territorial claims by Armenia regardless 
of who holds power. Armenia, which has repeatedly renounced 
such claims, views this demand as a potential stalling tactic. 
It fears that Azerbaijan may be using this as leverage to delay 
or derail the final agreement, though Yerevan remains open to 
dialogue.
    For Armenia, the stakes could hardly be higher. Some 
members of this Commission visited Armenia's Jermuk border 
region this summer, where they witnessed Azerbaijani military 
positions established over the past two years. During my recent 
travels along this and other border areas, I saw no sign that 
Azerbaijani forces were preparing to withdraw. On the contrary, 
they have entrenched themselves, constructing military barracks 
and expanding roads, all well inside Armenian territory. Even 
more troubling, both sides now confront each other at 
dangerously close military positions on the frontline, where 
miscalculations or isolated incidents could quickly escalate 
into broader conflict, endangering civilian populations near 
the frontlines.
    Faced with this situation, Armenia has little choice but to 
stay engaged in the peace talks, hoping to reduce the ever-
present threat of a new war. Since Azerbaijan's victory in the 
2020 war, Armenia has struggled to rebuild its military 
capacity. Its formal ally, Russia, has shown no intention of 
assisting, as Moscow remains preoccupied with its illegal war 
in Ukraine and seeks to maintain strong ties with Azerbaijan. 
Should Azerbaijan pursue Armenia's total capitulation, its 
forces could within hours seize critical infrastructure, 
especially in Armenia's vulnerable southern regions. While Baku 
insists that Yerevan's concerns are false, both Washington and 
European capitals have issued strong warnings against the new 
Azerbaijani offensive.
    Beyond the immediate security risk, the humanitarian 
fallout from the conflict continues to loom large. This is the 
fate of over a hundred thousand ethnic Armenians who fled 
Nagorno-Karabakh almost a year ago. Most remain scattered 
across Armenia. In my many months of interviews with dozens of 
refugees, I have yet to meet a single person ready to give up 
hope of returning to Nagorno-Karabakh. However, the refugees 
are also deeply exhausted by decades of military confrontation 
and the constant sacrifices their families have endured since 
the very start of the conflict. It is very important to support 
these refugees and aid their integration into new communities. 
Armenia has made a significant commitment to helping them, but 
it struggles to provide adequate housing and jobs. These 
refugees deserve more than a life on subsidies. They need 
opportunities for meaningful work and full integration into 
their new communities. The United States has a role to play 
here providing not only financial support but also expertise in 
managing large-scale displacements effectively in the longer 
term.
    Again, the peace agreement that Yerevan and Baku now 
negotiate will not settle--will not settle three decades of 
conflict, but it should reduce the risk of the worst-case 
scenarios I have outlined: A full-scale war and another 
humanitarian catastrophe. It would mark the start of a long 
journey toward rebuilding trust and offer the potential for 
expanding trade and economic development. The agreement might 
also help unlock long-stalled talks between Armenia and Turkiye 
on normalizing relations, which could bring new opportunities 
for growth not only to Armenia but to the entire South 
Caucasus. With U.S. support, Armenia and Azerbaijan should 
seize this opportunity to embark on a less hostile chapter in 
their history.
    I am happy to take the questions.
    Chairman Wilson: Thank you very much. We appreciate again, 
Ms. Vartanyan, your service with the International Crisis 
Group. [Comes on mic.] We appreciate your service with the 
International Crisis Group in Tbilisi, and I wish you well on 
your success.
    We are so fortunate to also have President Grigoryan and 
the--who is the founder of the Regional Center for Democracy 
and Security in Yerevan.

TESTIMONY OF TIGRAN GRIGORYAN, PRESIDENT AND FOUNDER, REGIONAL 
      CENTER FOR DEMOCRACY AND SECURITY, YEREVAN, ARMENIA

    Mr. Grigoryan: Mr. Chairman, distinguished members of the 
Commission, thank you for the opportunity to testify.
    In recent years, Armenia has made significant progress 
toward democratization, especially following the 2018 
democratic revolution, a watershed moment where our citizens 
demanded transparency, the rule of law, and accountable 
governance. Yet, Armenia's path to becoming a consolidated 
democracy remains fraught with serious challenges.
    First, the greatest challenges to Armenia's democracy are 
external. The country faces an immediate and existential threat 
from neighboring Azerbaijan and a hybrid threat from Russia. In 
the past four years, Azerbaijan has used its military advantage 
to occupy Armenian territory, impose a nine-month blockade on 
the civilians of Nagorno-Karabakh, and conduct a military 
operation that forcibly displaced over 100,000 Armenians, an 
act characterized by Freedom House as ethnic cleansing. Despite 
international condemnation, Azerbaijan continues to threaten 
Armenia with force.
    Armenia's inability to counter this threat effectively 
fuels domestic political polarization and creates fertile 
ground for Russia's hybrid warfare efforts. Central to Russia's 
malign influence campaign in Armenia lies the narrative that 
democratic regimes cannot provide security for their people. 
This narrative has gained traction as Armenia seeks to distance 
itself from Moscow. Complicating matters is Armenia's economic 
and energy dependence on Russia, which Moscow could exploit to 
punish Yerevan. Armenia's success in shifting its foreign 
policy will largely depend on securing support for its 
diversification efforts.
    The second major challenge is Armenia's institutional 
weakness. While elections and media freedom have significantly 
improved since the 2018 revolution, building and maintaining 
strong independent institutions that can prevent democratic 
backsliding remains a difficult task. Without an effective 
system of checks and balances, the future and resilience of 
Armenia's democracy will be at serious risk.
    The third major challenge is the refugee crisis stemming 
from the ethnic cleansing in Nagorno-Karabakh. Armenia, a 
country of 3 million people, has absorbed over 100,000 
refugees, a staggering number when compared to the U.S. refugee 
admissions target of 125,000 for this year. While the Armenian 
government has addressed the immediate aftermath of the crisis, 
the long-term integration of Karabakh Armenian refugees is a 
daunting task requiring substantial international support. If 
left unresolved, the resulting socioeconomic issues could 
undermine social cohesion in Armenian society.
    In light of these challenges, I recommend the following.
    To secure Armenia's democratic future, the U.S. must tackle 
these challenges head-on. Upgrading Armenia from Group [D] to 
Group [B] under the Export Administration Regulations would be 
a strategic move that could deepen military cooperation and 
open the door for advanced U.S. technology transfers. This 
could bolster Armenia's defense, reduce reliance on Russia, and 
empower it to confront security threats while standing firm as 
a democratic partner in a volatile region. At a minimum, 
targeted sanctions--targeted sanctions should be imposed on 
Azerbaijani officials and servicemen involved in wartime 
atrocities and aggression against Armenia and Nagorno-Karabakh 
Armenians. The absence of accountability only emboldens Baku's 
lines of attack.
    Sustained U.S. support for Armenia's efforts to diversify 
its economy and energy sector is crucial to counter potential 
hybrid threats from Russia. Moscow has the leverage to inflict 
severe economic pain on Armenia and coerce political alignment. 
Equally vital is strengthening Armenia's ability to resist 
external disinformation campaigns that threaten both societal 
cohesion and state stability.
    On the institutional front, the U.S. must prioritize 
promoting democratic norms and practices in Armenia, focusing 
on institution-building rather than supporting specific 
political actors because they are perceived as pro-democracy. 
This is what democratic development should be about.
    Lastly, the U.S. must increase the support for integrating 
Karabakh Armenian refugees. While eleven and one half million 
has been allocated, more should be done to address this 
humanitarian crisis.
    Mr. Chairman and members of the Commission, Armenia's 
democratic journey is at a critical juncture. The challenges it 
faces, from external security threats to institutional 
weaknesses and the refugee crisis, are formidable. With U.S. 
support and a commitment to democratic principles, Armenia can 
overcome these obstacles. This support is not just about aiding 
one nation: It is about preserving a democratic partner in a 
region of autocracies.
    Thank you for your attention, and I look forward to 
answering any questions you may have.
    Chairman Wilson: Thank you very much, President Grigoryan.
    We have been joined by Congresswoman Victoria Spartz, and 
she has a special understanding. She was born in the Soviet 
Union, but fortunately, her home community now is part of the 
free and courageous Ukraine.
    With this in mind, we are going to now proceed to questions 
and begin the five minutes with me. As we begin, Ms. Vartanyan, 
I was so pleased you referenced the European Union and, indeed, 
how positive that can be for the people of Armenia, because I 
was with Chairman Cardin yesterday in Brussels, and every time 
you see the vibrancy of the European Union--and when we were 
visiting across Armenia, we saw different references to EU 
support of different projects, and it should be such a bright 
future. With that bright future, what are the current economic 
opportunities for American businesses in Armenia, particularly 
in sectors like IT, renewable energy, and agriculture? How can 
America deepen its economic ties with Armenia to foster mutual 
opportunity?
    Ms. Vartanyan: Well, thank you so much for your question. I 
should say that Armenia has been trying to develop its economy 
for quite some time. If you have a look at especially the 
efforts that have been made in the last five years since the 
change of the leadership and the--with the current political 
leadership in Armenia, what has been happening is that they 
were trying to reform the economic structures inside the 
country. However, what is really very important is to continue 
building the bridges and the linkages with the outside world. 
In that sense, of course, the potential is there when it comes 
to the European Union, first of all, but the United States 
remains a very important market in that sense as well.
    We have been seeing more visits coming from the United 
States, especially in recent months, and this should probably 
continue. This is where the dialogue started, strategic 
dialogue started between the Armenian administration and the 
United States. Then this is probably where the conversations 
and the discussions should continue as well.
    I should probably point to one very important thing which 
is more in the sphere of my expertise, which is Armenia's 
stability and security. Then I think all the speakers here, 
have pointed to Armenia's vulnerability when it comes to its 
economic dependence on Russia. Russia remains one of the main 
economic partners to Armenia, and then it has quite a lot of 
business presence. Then when it comes especially to the supply 
of energy to the country, this is where the United States has 
been trying to help Armenia and could do much more, and then 
this is where probably I should mention the ongoing discussion 
about possible U.S. support to rebuild the nuclear potential 
for Armenia.
    Chairman Wilson: Well, thank you very much, and again, I 
particularly appreciate foreign direct investment. In my home 
district, with Michelin Tire Corporation, I have the largest 
Michelin plant in the world. In my home state of South 
Carolina, we have the largest BMW manufacturing facility in the 
world, and we want everybody in Armenia to have an X5. 
Therefore, this--[laughter]--so it should--and it is mutual 
benefit.
    Additionally, indeed, Ambassador, I am so concerned about 
war criminal Putin trying to recreate the failed Soviet Union, 
which was beneficial to the nomenklatura. Now he wants it to be 
beneficial as he oppresses the people of Russia to benefit 
oligarchs. You identified it correctly. Immediately, the 
threats are to Moldova with the occupation--illegal occupation 
of Transnistria. We know the illegal occupation of the 
different portions--South Ossetia, Abkhazia--of the Republic of 
Georgia. Then the danger of Armenia, there are 4,000 at least 
Putin troops that were supposed to be there for the protection 
of the people of Armenia, but that is not the way it has worked 
out, and so what can we do to strengthen our mutual defense 
efforts?
    Mr. Baer: Thank you, Mr. Co-Chair. We want the right people 
to have X5s in that part of the world--[laughs]--not the 
oligarchs, but the honest--the honest businesspeople.
    Chairman Wilson: We want everybody to have one.
    Mr. Baer: Okay. [Laughter.] You know, your question--your 
question is quite right. I think Vladimir Putin is making the 
best argument against Vladimir Putin's security guarantees that 
anybody could make, a stronger argument than we could, and you 
see that in public opinion in Armenia today. A few years ago, 
90 percent of the population trusted Russia--as a partner, and 
now it is down to 30 percent, and that reflects an assessment 
of what has gone on in the region. As you said, Russian so-
called peacekeepers have not been peacekeepers in the region. 
Therefore, I think we need to continue to look for 
opportunities.
    One suggestion that I made is that we might work with 
partners to set up a series of agreements. There have been 
these agreements made with Ukraine that last for 10 years that 
kind of give a long-term perspective to security assistance, 
and if those could be done by individual partners of Armenia, 
they could be bundled together to give Yerevan and the people 
of Armenia confidence that there is going to be a partnership 
with the West for the long run.
    Chairman Wilson: Indeed, I believe there will be.
    I am really grateful now to recognize Chairman Ben Cardin.
    Senator Cardin: Thank you, Mr. Chairman. Let me thank again 
our witnesses.
    Therefore, my impression is that to make progress for 
Armenia, the next step is to have a successful peace agreement 
between Azerbaijan and Armenia. That seems to be the next major 
step for Armenia.
    Now, I start by saying I am not sure that a peace agreement 
is very fair. If I understand it, it does not--they are not 
even talking about taking care in Nagorno-Karabakh from the 
point of view of access by the community that is been 
displaced. They are not even talking about the border issues as 
far as the areas that are currently under control by Azerbaijan 
and Armenia. Therefore, it is not really a very fair agreement. 
All that being said, my understanding is that Armenia wants to 
move forward with the agreement because that is the only way 
they are going to be able to get their borders open and be able 
to get their country economically on the right path.
    Now, that requires Azerbaijan to say, well, why cannot we 
at least open up the Turkish borders? Yet, Turkey will not open 
up the borders until there is an agreement with Azerbaijan. 
Then it appears that Russia has to okay Azerbaijan agreeing to 
an agreement with Armenia because of the new relationship 
between Azerbaijan and Russia, and Russia does not want this to 
happen. Therefore, the bottom line is it seems like it is all 
falling apart because Russia is saying no. How do we overcome 
that?
    Ms. Vartanyan: Should I go? Yes? Is it okay if I start?
    Senator Cardin: Sure.
    Ms. Vartanyan: Well, thank you so much for your analysis. 
It is great to hear all these details and especially to feel 
how much you do care about what is happening there in the 
region.
    When you have a conflict for over 30 years; when you have 
several wars with so many casualties, with such a large 
displacement; and especially when you have to negotiate in a 
situation when your major neighbor, Russia, is invading another 
neighbor, Ukraine, and you have a question about your own 
statehood future; you have to start with something. It is 
probably better to start with something where you can agree 
with Azerbaijan in order to proceed with your dialogue and then 
to settle step by step some of the issues, including the ones 
that you mentioned.
    I personally believe it is really very important to address 
some of the topics that have to do with the war legacy and also 
the conflict. You mentioned just one topic, it is the fate of 
Nagorno-Karabakh and what happened there. It is really very 
difficult for me to see how people from Nagorno-Karabakh, 
Armenians, will just forget about their home region. However, 
it is really--it is also very difficult for me to see how this 
very topic can get on the table at this very moment for them to 
agree. Therefore, they probably should start with something 
where they can reach an agreement and then proceed with some 
more difficult topics.
    Senator Cardin: Yes. I agree with that, and so I am 
supportive of trying to reach an agreement even though I think 
it is not going to be fair. By the way, I do not think--it is 
going to be hard to reach this type of agreement. As you have 
pointed out, Azerbaijan is insisting on constitutional changes 
in Armenia, which is ridiculous. It is just a ridiculous 
requirement that they are asking for. It is not needed, and it 
is really just something we believe is to delay or eliminate 
the agreement.
    However, let me raise two other issues and welcome either 
--any of your response. How do you deal with the situation? If 
we are going to be able to get investors into Armenia, how do 
we get tech investors if Russia is present in Armenia? We would 
be concerned about compromising our intellectual property, and 
how do we deal with a country that has open borders with Iran, 
another security threat to the United States? Therefore, how do 
we deal with those two issues? Mr. Ambassador, do you want to 
try that one?
    Mr. Baer: [Laughs.] You always save the easy ones for me. 
[Laughter.]
    I mean, I think it goes back to your first question. In the 
services sector, the tech--the tech investments that you would 
expect to see in the near term in Armenia would likely be the 
outsourcing of some programming. It would not necessarily be 
the highest level of intellectual property threats, and I think 
we would be wise to be judicious about who else is present on 
the ground across that region. But you cannot get investment in 
the services sector if you do not have security, so the peace--
the peace between Armenia and Azerbaijan is important for 
really developing the services sector, including the IT sector.
    The border with Turkey is incredibly crucial to all of the 
goods and--the goods--the developments of the goods, the hard 
goods business. The border with Turkey is the place to 
diversify what are right now two options, neither of which is 
very attractive, Iran and Russia. Therefore, if I were going to 
make a suggestion to undo the Gordian knot--and I understand it 
is difficult--that you laid out, we might consider putting 
emphasis on reversing the sequence; not going for peace with 
Armenia and--keep those talks going, peace with Armenia and 
Azerbaijan first, but rather going for normalization with 
Turkey first, and--
    Senator Cardin: However, Turkey has said they will not do 
it until there is a peace agreement.
    Mr. Baer: They will not surprise the Azerbaijanis. They 
aare too close to the Azerbaijanis. Therefore, they will --I 
mean, not too--they are not going to surprise the Azerbaijanis 
by signing some deal without Azerbaijan knowing. However, I 
wonder if there could be some practical measures, some 
confidence-building measures between Armenia and Azerbaijan 
short of normalization; for instance, talks about how they 
would manage an open border between the two countries. How 
would the two sides, their border security forces, how would 
they relate to each other? How would they deal with customs? If 
you could start to get people talking about the practicalities, 
you might get them to be able to imagine it. At some point, 
yes, with Azerbaijan's full knowledge, Turkey may be willing to 
take the courageous step to do what is good for the entire 
region including Azerbaijan, which is open to that border.
    Senator Cardin: Thank you.
    Chairman Wilson: Thank you very much, Chairman Cardin.
    We now proceed to Co-Chairman Steve Cohen of Tennessee.
    Representative Cohen: Having probably torn my relationship 
with Turkey apart, I will pass on these questions at the 
present time.
    Chairman Wilson: You just saw, again, bipartisan 
intelligence right there. Therefore, we now--[laughter]-- and 
so then--and so it goes straight to Congressman Marc Veasey of 
Texas.

      STATEMENT OF MARC A. VEASEY, U.S. HOUSE, FROM TEXAS

    Representative Veasey: Thank you very much, Mr. Chairman. I 
appreciate that.
    I was hoping, Dr. Baer, that you could talk a little bit 
about Israel's relationship with Armenia and Azerbaijan, and do 
you see them having a role in future negotiations?
    Mr. Baer: I do not know how much of a role I would expect 
Israel to have in the actual negotiations. I know Israel has 
relations with both countries, and indeed with most countries 
in the region, and some of those relationships are founded on 
Israel's export of high-technology defense equipment. 
Therefore, I could see that as the political and security 
situation improves in the region, including between Armenia and 
Azerbaijan, that might pave the way for more trade relations 
with Israel, as it would with other countries. However, I do 
not know that I would expect them to play a pivotal role in the 
kind of diplomatic/political work that needs to be done to get 
the normalization or the peace agreement in the near term.
    Representative Veasey: Thank you very much.
    Mr. Grigoryan, I wanted to ask you, I know that you wanted 
to--you highlighted Armenia's economic and energy dependence on 
Russia. Winter is here, and the last two winters have been 
relatively mild, you know, in comparison to previous seasons. I 
wanted to know what steps you think the U.S. can take to assist 
Armenia in diversifying its energy sources and reducing its 
reliance on Russian markets. This has to be something that you 
are following closely.
    Mr. Grigoryan: Yes. Thank you for your question.
    Armenia's dependence--economic dependence and energy 
dependence on Russia is quite big at this moment. It has been 
the focus of all the talks between the Armenian government and 
Western leaders, trying to find a solution to that problem. 
Therefore, that is why I think all of us emphasize the need for 
diversification.
    However, I think we need to understand that it is a long-
term process. It cannot happen overnight, but it is not 
impossible either. Our center has recently conducted research 
on that topic that actually shows that with continued 
investment in Armenia's energy sector, like the atomic station 
we were talking about, or improving its agriculture, and 
finding new markets for Armenian products, it is possible in 
the mid-term and in the long term to reduce this dependency.
    It is also important to understand that Russia is quite 
weak at this moment, and tha is an opportunity for countries 
like Armenia to have a bold foreign policy. It means that the 
possibility of Russia implementing sanctions against Armenia is 
not that big at this moment. That is why Armenia has been able 
to take some bold steps, like removing the Russian border 
guards from the airport or from the Armenia-Azerbaijan border.
    However, the short answer to your question is to support 
Armenia in finding new markets, subsidizing its agriculture, in 
removing the tariff barriers to energy resources that are 
coming to Armenia, that is one of the biggest problems and that 
is one of the biggest reasons for the prevalence of the Russian 
energy sources. Therefore, there are solutions. It is not that 
it is impossible to do. However, these are all mid-term and 
long-term solutions.
    Representative Veasey: Do you feel that Armenia's ready for 
a long winter if that should occur?
    Mr. Grigoryan: I think that is the only way to move 
forward. If we are--if we are serious about this whole foreign 
policy diversification, enhancing the country's security, I 
think there is--this understanding in Yerevan. Of course, there 
are some doubts about the capacity of implementing this kind of 
strategy or coming up with this kind of strategy. That is why 
it is important that the U.S. and the EU continue being engaged 
in this process because, without Western support, this process 
could be very difficult.
    Representative Veasey: Yes, no, thank you very much.
    Dr. Baer, on--kind of on the same topic, what strategies 
can Armenia adopt to reduce its reliance on Russia, 
particularly in the defense sector? How can the U.S. help in 
that area?
    Mr. Baer: In the defense sector, Armenia has been almost 
entirely dependent on Russia for the last three decades, and so 
it is going to take a generation to shift. It is not only a 
shift in the dependence on Russia for hardware and for 
training, but, obviously, a new generation of leadership. Prime 
Minister Pashinyan has shown this understanding of the need for 
a generational shift, and it is not just in the defense sector; 
it is across government services in many ways.
    Therefore, I think of two things. One, going back to what I 
said before, these bilateral security arrangements or security 
agreements where we provide assistance to the security sector--
the security and defense sector over the long run, not just the 
United States but also other partners and friends of Armenia. 
However, also, some of the training programs that we can do to 
build a culture that is appropriate to a free and democratic 
people and the future that they have decided that they want.
    representative Veasey: Yes. Thank you very much.
    Thank you, Mr. Chairman.
    Chairman Wilson: Thank you very much, Congressman Veasey.
    We now proceed to Congressman Dr. Andy Harris of Maryland.

      STATEMENT OF ANDY HARRIS, U.S. HOUSE, FROM MARYLAND

    Representative Harris: Thank you very much, Mr. Chairman.
    A couple of questions just following up--on the visit 
earlier in the summer. Are the guards removed from the airport, 
the Russian troops? They had--so that has taken place.
    What about the other Russian forces in the country? There 
was a suggestion that the Ukraine conflict was going to cause 
Russia to draw down some of its forces. Where does the drawdown 
stand? Or is there going to--is there a drawdown? Because the 
Russian troops were not only at the airport; they were at other 
bases in the country is my understanding.
    Ms. Vartanyan: Should I go first?
    Well, if you--I think it is actually better to look--to 
take a big--kind of a broader snapshot of what has been 
happening in the region since Russia invaded Ukraine. In that 
sense, of course, the situation that happened last year in 
Nagorno-Karabakh is probably one of those indications where we 
see the Russian declining ability to have an impact on the 
ground. In that sense, I am not sure that we should be only 
discussing kind of, you know, their presence or continued 
presence in these places. They might have something on the 
paper, but that does not necessarily mean that Russia is either 
willing or even able to activate its presence on the ground, 
yes? I think it is really very important to point. Again, the 
situation, what happened in Nagorno-Karabakh last year with the 
Russian peacekeepers on the ground absolutely not acting to do 
anything and Moscow not even taking any kind of--you know, 
paying any kind of attention, including to the fact that some 
of the Russian peacekeepers got killed during that very crisis.
    Therefore, the Russian peacekeepers are still--the Russian 
military is still present along the Armenian-Turkish border, 
and then also they are present at the Armenian-Iranian border. 
The Russian military presence, at the--request of Armenia left 
not only the airport but also left a number of--a number of 
their military bases, like small ones along the Armenian-
Azerbaijani border. I could see it myself when I was traveling 
there in July that the Russians were no longer there and they 
had to pack and leave Armenia. However, I mean, again, in light 
of the war in Ukraine, it is not only the actual having 
presence, basically physical presence on the ground; it is also 
the declining Russian ability or sometimes even willingness to 
activate some of the tools and the resources that it has on the 
ground.
    Representative Harris: Thank you. When we visited, there 
was a suggestion that, of course, Azerbaijan is assisting in 
avoiding the sanctions on Russia and bypassing sanctions on 
Russia, especially with regards to energy flow from the Caspian 
Sea--I am sorry, from Russia through Azerbaijan. However, there 
are--there are also some reports that Armenia--that may be 
taking place in Armenia as well, helping Russia avoid 
sanctions. Is the Armenian government adamant that that should 
not be happening; that, in fact, these sanctions, these--a lot 
of these--U.S. and Western sanctions on Russia should be abided 
by all the players in the South Caucasus?
    Ms. Vartanyan: Should I try to respond to it? Maybe I will 
allow some of my colleagues also to follow up.
    Well, you know, I have been working on the whole region of 
the South Caucasus, and usually, to be honest, I mean, in my 
conversations with the Western officials and diplomats, it is 
not Armenia but Georgia that comes up in the conversations. 
Armenia, in contrast to many other countries that are bordering 
Russia, has been staying very transparent and willing to 
cooperate and also to respond to all the questions that have 
been coming either from the United States or from the European 
Union. I think we have already lost count of the delegations 
that have been visiting and, again, kind of checking and 
reporting back to their capitals that there have been no 
problems so far.
    Mr. Grigoryan: I can confirm that this is actually the 
case. For the Armenian government, this is an absolute red line 
and they are doing everything to meet all the requirements that 
have been set by the Western partners.
    However, when it comes to Azerbaijan, it is not just about 
the sanctions; it is about also creating alternative 
infrastructure for Russia to trade with the outside world. The 
so-called North-South Transportation Corridor that allows 
Russia to basically direct all these products that were sold to 
Europe to the Indian market and to other markets is very 
important. If you look at the recent trip by the Russian 
president, Vladimir Putin, to Baku, that was the most important 
issue they discussed. Gazprom and the Azerbaijani state oil 
company, SOCAR, signed a new $1 billion agreement on developing 
that route. A lot of other agreements were signed. Therefore, 
this is much more serious than evading sanctions.
    Representative Harris: Thank you very much.
    Chairman Wilson: Thank you very much, Dr. Harris.
    We now proceed to Emanuel Cleaver of Missouri.

    STATEMENT OF EMANUEL CLEAVER, U.S. HOUSE, FROM MISSOURI

    Representative Cleaver: Thank you, Mr. Chairman. Thank you 
for this hearing.
    Ms. Vartanyan, I am going to direct this question to you 
although I am interested in any of you responding. However, you 
had earlier suggested that the Azerbaijan military appears to 
be expanding their military operations or their positions along 
the frontline and building barracks, expanding roads. In the 
United States, unfortunately, we get pretty much only news 
from--the American public--only on the United States, so we are 
not aware of things that are going on in places around the 
world. Therefore, you know, I think this may be an opportunity 
for us to at least, you know, expose to the American public 
some of the things that are going on.
    Therefore, I am interested if you would expand on the 
current military situation on the ground, and would it--would 
it be provocative if there was some kind of peacekeeping force 
or whatever else you might have--like to suggest?
    Ms. Vartanyan: Thank you so much for this question. In 
response to the Azerbaijani attack in 2022, the European Union 
was very fast to deploy the European Union civilian mission to 
Armenia. It now monitors all--whole long border between Armenia 
and Azerbaijan. The European Union's observers, they are 
patrolling 24/7, and they are reporting to their capitals 
regularly about every single smallest development on the 
ground. I know that some members of the Commission saw the 
mission.
    I should say that Canada, which is not a member of the 
European Union, joined the EU--the EU mission in Armenia, and 
there were some more conversations about some other countries 
that could join. I know that there were some discussions about 
the United States potentially participating. I should say that, 
of course, the United States, in that sense, will not be a 
leading country. It will be one of many. However, in a way, it 
will also provide the United States an opportunity to get very 
regular updates about everything that is happening on the 
ground, along with other Western partners. Then this will be 
basically the eyes and ears of the United States on the ground.
    Therefore, that could be probably something to consider, 
and then discuss with the State Department and some other 
agencies that are responsible for such decisions. As far as I 
know, there were some preliminary discussions going on, on that 
very issue. Of course, it will very much depend on the United 
States and the European Union whether they will want to proceed 
with every decision.
    Representative Cleaver: Thank you.
    Does anyone else like to respond to that?
    Mr. Grigoryan: Yes. I think in this context, the most 
important thing, as have--as I mentioned in my testimony, is to 
support Armenia to defend itself. There have been certain steps 
by countries like India, and France, who have sold weaponry to 
Armenia. However, I think more should be done. Because we have 
discussed the peace treaty, the peace talks. I think it is 
important. I agree with that. However, under the current 
circumstances, when the imbalance of power is such--there is 
such a huge imbalance of power, Armenia not being able to 
defend itself is the biggest problem. Because Azerbaijan will 
exploit future opportunities to escalate the situation.
    The peace treaty basically, at this point, does not resolve 
any of the outstanding issues. It is just a political document 
about recognizing each other's territorial integrity and 
sovereignty. There will be still a lot of unresolved issues 
after the signing of the treaty, like the unblocking of 
communications, and the limitation of the border. Therefore, we 
might still have a very volatile situation, even if this peace 
treaty is signed. I am not sure it is going to be signed in the 
near future.
    Mr. Baer: I can just add that I think the monitoring 
mission, the observers, are really important. Right now, they 
are really important because they are reporting on the ground 
on a daily basis and providing information to the international 
community. The hope is that right now what appears to be an 
ongoing aggressive posture by Azerbaijan is part of a 
negotiating tactic, and not a sign that they plan to make 
another move. The hope. If they do make another move, 
obviously, the observers are there. After there is a peace 
deal, the observers will remain important in giving confidence 
to both sides that the peace deal is being implemented, because 
there will be outstanding issues. I think after a peace deal, 
the observers can help build confidence on both sides that the 
peace will stick.
    Representative Cleaver: Thank you very much.
    Thank you, Mr. Chairman.
    Chairman Wilson: Thank you very much, Congressman Cleaver.
    Now proceed immediately to Congresswoman Victoria Spartz of 
Indiana.

     STATEMENT OF VICTORIA SPARTZ, U.S. HOUSE, FROM INDIANA

    Representative Spartz: Thank you, Mr. Chairman. I just 
have, like, a brief question for the ambassador. What do you 
think, if you look at South Caucasus right now, the lay of the 
land? It is interesting, just if you have some thoughts, on 
whether Azerbaijan intends to join BRICS. What is--what are 
your thoughts really where the powers are moving and what is 
really happening? Would like to hear your perspective.
    Mr. Baer: Sure. Let me start with Azerbaijan. I think Ilham 
Aliyev has masterfully been able to use petrochemicals and his 
control over energy in the region to bargain with the West. 
Obviously, the war in Ukraine has created more interest from 
Europe, in particular, in Azerbaijan's petrochemicals, while 
he's been cozying up to Putin and making a kind of fraternity 
of authoritarians with Putin. Therefore, Azerbaijan is--and, 
obviously, after a military victory he feels quite emboldened.
    I think the goal of U.S. diplomacy should make--should be 
to engage with him, because we do not have any choice, but to 
engage with him and try to encourage him not to let the 
emboldened go to his head and make decisions that are may in 
the short run gratifying, but in the long run, undermine not 
only the stability of other countries in the region but also 
Azerbaijan's own prospects for a prosperous and secure future.
    In Georgia, it is a devastatingly sad story right now. The 
backsliding of Georgian democracy over the last few years in 
particular has been heartbreaking for many of us who saw 
Georgia as a bright light as recently as a few years ago. 
Georgia has been accused of being a conduit for sanctions 
evasion and exporting to Russia goods that should not be 
exported to Russia. The current government has copied/pasted, 
effectively, Russia's anti-NGO law, forcing NGOs to register.
    I know that Senator Shaheen was in a meeting recently where 
she reported that she was told that if the United States would 
stop funding pro-democracy NGOs, that would solve problems in 
Tbilisi. Of course, the United States should continue to 
support those on the ground, which is the vast majority of 
Georgians who want a free, democratic Georgian government and 
who want a free, democratic Georgian future.
    I hope that we will stay engaged with Tbilisi. They have an 
election coming up, as I am sure you know, in October, before 
ours, and that election will be really pivotal. If the 
opposition wins, the prospects for unwinding some of the 
backsliding that has happened in recent years are on the table, 
as well as making progress with Georgia's talks with the EU 
which are now stalled because of the backsliding. Therefore, 
watch this space. The next 50 days will be really pivotal in 
Georgia. I was in Tbilisi last week.
    Interesting side note, I had the chance to meet with the 
president who, a couple of years ago, had--when I had asked 
about backsliding--she had told me and my colleagues, you know, 
do not worry, just wait and see how this turns out. This year, 
she came into our meeting, and she said, our Georgian Dream-- 
which, of course, is the ruling party--our Georgian Dream has 
become a Georgian nightmare. Therefore, her tone has changed, 
and she was sounding the alarm as well, as well as many in 
civil society.
    You know--obviously, you know the situation in Ukraine as 
well as anyone and have been an outspoken champion of Ukraine. 
Obviously, Armenia finds itself sandwiched between huge 
regional dynamics--and in some ways strangled--by huge regional 
dynamics that are not of its own making. However, geography is 
something that none of us can escape. Therefore, I think the 
reason why this hearing is so important, and continued 
congressional visits like the ones that your colleagues have 
made, is so important is to let people on the ground in Armenia 
know that America sees them, we want the same democratic future 
that they want for themselves, and that we will be there to 
support them in the long run.
    Representative Spartz: Thank you. Does anyone else want to 
add briefly something? No? Okay.
    Thank you. I yield back.
    Chairman Wilson: Thank you very much, Congresswoman.
    As we conclude, I think it is very clear for the people of 
Armenia and also for the people of Georgia that we have 
bicameral support--U.S. House, U.S. Senate--for freedom and 
democracy. We have bipartisan Republicans and Democrats also 
very supportive of freedom and democracy for the people of 
Armenia.
    I am so happy you mentioned the Republic of Georgia because 
the nation of Georgia--we are just impressed by the people of 
Georgia and know that their past experience has been to work 
closely with the EU, with the United States. That would be in 
their interest, and not to adopt foreign registration acts that 
could be clearly identified as a precursor of dictatorship, as 
has been sadly revealed in the Russian Federation and 
Venezuela.
    Keeping this in mind again, we are so hopeful for the 
people of Armenia. I have to restate, bicameral, House and 
Senate, bipartisan, Republicans and Democrats. We want the best 
for the people of Armenia. With that, we are adjourned. [Sounds 
gavel.]
    [Whereupon, at 3:40 p.m., the hearing ended.]

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