Locked in a decade-old conflict over Karabakh, Armenia and Azerbaijan have been increasing their military expenditures over the last few years. Lately this trend seems to have accelerated dramatically. The competition has launched an informal arms race in the South Caucasus that could easily lead... MORE

On July 15, Russian President Vladimir Putin made an unannounced visit to the North Caucasus republic of Dagestan, the very place where he began his climb to the presidency in 1999. In August 1999, Islamic militants from neighboring Chechnya invaded two districts of Dagestan, and... MORE

Armenia is under fire from the United States and other Western donors over the legally questionable transfer of its electricity distribution network to Russia's Unified Energy Systems (UES). The deal could have far-reaching repercussions for the country's economic independence and hamper continued Western assistance to... MORE

The increasing rebel attacks in Dagestan (see EDM, July 7) have finally forced Russian authorities to focus on the problems of the republic. Officials in Moscow now realize that the region needs special handling. Russian Defense Minister Sergei Ivanov recently conceded, "Of course we are... MORE

After weeks of vehemently denying media speculation about the imminent dismissal, Georgian President Mikheil Saakashvili fired Tbilisi Mayor Zurab Chiaberashvili on July 12. Chiaberashvili had called the rumors "a well-planned campaign," coming from people he had accused of stealing from Tbilisi's budget. At the same... MORE

South Ossetia's pro-Moscow leaders have lost no time rejecting Georgia's offer for direct negotiations toward South Ossetian autonomy. President Mikheil Saakashvili's offer, unveiled at an international conference in Batumi on July 10, entails a preparatory stage during which Georgia and international donor organizations would provide... MORE

At a conference in Batumi on July 10, President Mikheil Saakashvili and the government of Georgia along with Georgian NGOs unveiled a blueprint for the stage-by-stage resolution of the conflict in South Ossetia. Foreign envoys accredited in Tbilisi, American and European experts, Georgian government officials,... MORE

For the first time since the November 2003 Rose Revolution, Georgian President Mikheil Saakashvili's government has faced a large-scale, violent anti-governmental rally involving major opposition parties. The protest erupted June 30 on Tbilisi's central avenue after a court sentenced two popular wrestlers, Alexei Davitashvili, president... MORE