OSCE admits only dialogue in Karabakh settlement, chairman of the organization, Greek foreign minister Dora Bakoyannis said during briefing in Baku on July 2 after talks with Azerbaijani foreign minister Elmar Mammadyarov. "I am very proud of progress in Armenian-Azerbaijani conflict and constructive discussions. We admit only dialogue," Bakoyannis said. Azerbaijan plays one of leading roles in stability and security in Europe, as well as South Caucasus, she said. "We need strong and stabile Europe," Bakoyannis said.

The conflict between the two South Caucasus countries began in 1988 when Armenia made territorial claims against Azerbaijan. Azerbaijan lost all of Nagorno-Karabakh except for Shusha and Khojali in December 1991. In 1992-93, Armenian armed forces occupied Shusha, Khojali and 7 districts surrounding Nagorno-Karabakh. Azerbaijan and Armenia signed a ceasefire in 1994. The co-chairs of the OSCE Minsk Group - Russia, France, and the U.S. - are currently holding the peace negotiations.