The Nagorno Karabakh conflict can be resolved through a compromise to be reached by all sides involved in it, according to Uwe Hallbach, a Caucasus expert for the German Institute for International and Security Affairs in Berlin.

"After the war in Georgia, many turned their eyes on another South Caucasus conflict which emerged before the Georgian confrontation with Abkhazia and South Ossetia," he said.

Mr. Hallbach stressed that Stepanakert's wish to participate in ongoing talks is quite justified. He also said that the OSCE Minsk Group's main achievement is the maintenance of ceasefire.

As to transfer of OSCE MG mandate to the UN, the expert said it would be perfect if all sides agreed.

"Nevertheless, there are a number of scenarios which could be realized with agreement of all sides. The problem is that any suggestion arouses discontent of one of the sides," he said. "The conflict is a huge obstacle for regional development, but it will not see soonest resolution."

Dwelling on positive aspects of the recent processes, Mr Hallbach noted the Armenian-Turkish thaw. "However, being formally an Azeri territory, Karabakh hampers normalization of relations between Armenia and Turkey," he said.