Resolve Nagorno-Karabakh, G8 leaders say

L'AQUILA, Italy, July 10 (UPI) -- Azerbaijan and Armenia should adhere to agreements on Nagorno-Karabakh in an effort to resolve their differences, U.S., French and Russian leaders said Friday.

The presidents of the United States, Russia and France issued a joint statement on the sidelines on the Group of Eight summit in L'Aquila, Italy, expressing their commitment to resolve the Nagorno-Karabakh conflict as outlined in a November 2007 agreement in Madrid.

The Madrid agreement calls on Azerbaijan to assume control over territories surrounding Nagorno-Karabakh, demands the rights of return for displaced persons and proposes an international security guarantee that could include a peacekeeping operation.

"We urge the presidents of Armenia and Azerbaijan to resolve the few differences remaining between them and finalize their agreement on these basic principles, which will outline a comprehensive settlement," the joint statement read.

Armenia and Azerbaijan fought a bitter military battle over Nagorno-Karabakh in the early 1990s, and the regional fallout from disputes over the territory remains tense despite a 1994 cease-fire.

Armenia is asking for self-determination over the region, while Azerbaijan demands Armenian troops leave and allow Nagorno-Karabakh to remain Azeri territory.

A conflict over Nagorno-Karabakh has the potential to pit Turkey and Russia against Europe and the United States in a row that has a distinct possibility of spilling over to the regional energy sector.