For two and a half years, Armenia and Azerbaijan, with the involvement of other international actors, have been engaged in negotiations on signing a peace treaty. However, a deal that would be the basis for reconciliation between the two countries has not yet been reached yet. This article discusses major factors that impact the prospects of a peace treaty between Azerbaijan and Armenia. The article looks into not only the unresolved issues between the two countries, but the role of international actors as well. The article concludes that the process to sign a peace deal is significantly derailed by Russia, which is interested in keeping its military presence in the region by maintaining the status quo in the conflict-affected region of Azerbaijan. The complexity of inter-state border demarcation and delimitation, as well as different stances on unblocking transport and economic connections, have further undermined negotiations.