Tensions between Azerbaijan and neighboring Armenia on the fate of the Nagorno-Karabakh region are reaching dangerous levels. In the past year, the Azeri enclave in the South Caucasus, which Armenia has occupied since 1992, has been the focus of increased violence. Just last month, six people were killed in an exchange of fire across the temporary line that separates the two sides. READ MORE

Although the air outside is hot and dry—part of a heat wave scorching Russia and neighboring Ukraine—it is cool, dark, and slightly damp in the sandstone caverns beneath Milestii Mici, Moldova’s largest winery. Along seemingly endless underground boulevards, Soviet-era lighting and updated signs point the way to underground galleries housing millions of liters of meticulously produced and preserved wine in bottles and oak barrels—just part of the winery’s two-million-bottle collection, acknowledged by Guinness as the world’s largest. READ MORE

At the beginning of July, Russia, Kazakhstan and Belarus signed a number of protocols establishing a customs union between the three countries. The union, scheduled to be fully operational in January 2012, will create a single common market of about 170 million people and represents the latest of several attempts by Moscow to create an effective trade bloc with its newly independent neighbors since the break-up of the Soviet Union. In addition to the economic ties maintained through the establishment of the Commonwealth of Independent States (CIS), Russia first committed to a union with Belarus in 1994. READ MORE

Russian gas giant Gazprom and Azerbaijan's state oil and gas company will sign a deal to increase supplies of Azerbaijani gas to Russia in 2011-2012 during the Russian president's visit to Baku on Thursday, RIA Novosti reported. READ MORE