The region of the South Caucasus is of major strategic importance for the European Union, especially with regards to the energy security. Whether the EU in the future decreases its growing dependency on Russian supplies or will not depend only on securing access to Caspian oil and gas. Future major investments, which are needed, remain uncertain unless stability and security of the region can be safeguarded. However, unresolved – so called frozen – conflicts pose a major obstacle to the stability of the South Caucasus despite one and half decade of ongoing peace talks.