Armenia and Azerbaijan vow to 'normalise relations' and exchange POWs in joint statement

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Armenia and Azerbaijan have agreed to take "steps" to normalise their relationship, according to a joint statement by the two countries, a move welcomed by the European Union and the United States. 

“The Republic of Armenia and the Republic of Azerbaijan share the view that there is a historical chance to achieve a long-awaited peace in the region," the statement read.

"The two countries reconfirm their intention to normalise relations and to reach the peace treaty on the basis of respect for the principles of sovereignty and territorial integrity."

The statement follows talks between representatives of the two neighbours which for decades have been fighting over the disputed territory of Nagorno-Karabakh.

In September, Azerbaijan waged a military campaign in the separatist region, ending three decades of rule there by ethnic Armenians.

In addition to agreeing to work towards a peace treaty, the two countries announced that a deal had been agreed to exchange prisoners of war.

"Driven by the values of humanism and as a gesture of goodwill, the Republic of Azerbaijan releases 32 Armenian military servicemen," the statement says.

"In its turn, driven by the values of humanism and as a gesture of goodwill, the Republic of Armenia releases two Azerbaijani military servicemen."

The two countries added they "will continue their discussions regarding the implementation of more confidence-building measures, effective in the near future".

They called on the international community to support their efforts to build mutual trust between the two countries which they said would positively impact the entire South Caucasus region.

As a gesture, Armenia also agreed to lift its objections to Azerbaijan hosting the United Nations climate change conference next year.

European Union Council President Charles Michel said he was "delighted" at the "breakthrough", which he hailed a "key step".