The dissolution of the Soviet Union in December 1991 brought an end to the Cold War and created the opportunity to build relations with its successor states as they began a political and economic transformation. The United States opened an embassy in Azerbaijan's capital, Baku, in March 1992.

The United States has been actively engaged in international efforts to find a peaceful solution to the Nagorno-Karabakh conflict. The U.S. has played a leading role in the Minsk Group, which was created in 1992 by the Conference on Security and Cooperation in Europe--now the OSCE--to encourage a peaceful, negotiated resolution to the conflict between Azerbaijan and Armenia. In early 1997, the U.S. heightened its role by becoming a co-chair, along with Russia and France, of the Minsk Group.

The U.S. supports American investment in Azerbaijan. U.S. companies are involved in three off-shore oil development projects with Azerbaijan, and U.S. companies in other fields such as telecommunications have been exploring the emerging investment opportunities in Azerbaijan.

The United States is committed to aiding Azerbaijan in its transition to democracy and formation of an open market economy. The Freedom Support Act, enacted in October 1992, has been the cornerstone of U.S. efforts to help Azerbaijan during this transition. Under the Freedom Support Act, the U.S. provided approximately $43.8 million in humanitarian and developmental assistance to Azerbaijan in FY 2002.

The U.S. and Azerbaijan have signed a bilateral trade agreement, and Azerbaijan has most favored nation status. A Bilateral Investment Treaty also has been signed.

U.S. Humanitarian Assistance
Since 1992, the United States has disbursed more than $140 million in humanitarian assistance to the Internally Displaced People, refugee, and war-affected populations of Azerbaijan. U.S. assistance is provided principally through Private Voluntary Organizations. The primary Private Voluntary Organizations now implementing and coordinating USAID funded assistance programs are Mercy Corps International, Adventist Development and Relief Agency, International Rescue Committee, Save the Children, and the Community Housing Foundation. Likewise Shore Bank LTD and the Foundation for International Community Assistance provide small- and medium-scale loans to the Internally Displaced People, refugee, and war-affected populations to increase their economic viability. USAID; USDA; the State Department's Bureau of Population, Refugees and Migration; and the Office of the Coordinator for U.S. Assistance to Europe and Eurasia provide funds directed toward increased humanitarian assistance.

The U.S. Embassy in Baku, Azerbaijan is at 83 Azadliq Prospect; tel: 994-12-98-03-35; fax: 994-12-65-66-71.