Disputes International
Armenia supports ethnic Armenian secessionists in Nagorno-Karabakh and militarily occupies about one-sixth of Azerbaijan - Organization for Security and Cooperation in Europe (OSCE) continues to mediate dispute; Azerbaijan signed bilateral agreements with Russia delimiting the Caspian seabed, but littoral states are far from multilateral agreement on dividing the waters and seabed regimes - Iran insists on division of Caspian Sea into five equal sectors while Azerbaijan, Kazakhstan, Russia, and Turkmenistan have generally agreed upon equidistant seabed boundaries; Iran threatens to conduct oil exploration in Azerbaijani-claimed waters, while interdicting Azerbaijani activities; Azerbaijan and Turkmenistan await ICJ decision to resolve sovereignty dispute over oilfields in the Caspian Sea
Illicit Drugs
limited illicit cultivation of cannabis and opium poppy, mostly for CIS consumption; small government eradication program; transit point for Southwest Asian opiates bound for Russia and to a lesser extent the rest of Europe
