This report includes information regarding policies and proposals pertaining to gasoline prices. Options for policy, the NOPEC Bill, and ANWR are among topics discussed in this report.

The United States recognized the independence of all the former Soviet republics by the end of 1991, including the South Caucasus states of Armenia, Azerbaijan, and Georgia. The United States has fostered these states' ties with the West in part to end the dependence of these states on Russia for trade, security, and other relations. The FREEDOM Support Act of 1992 provides authorization for assistance to the Eurasian states for humanitarian needs, democratization, and other purposes. In the aftermath of the September 11, 2001, terrorist attacks on the United States, the Administration appealed for a national security waiver of the prohibition on aid to Azerbaijan, in consideration of Azerbaijan's assistance to the international coalition to combat terrorism. Azerbaijani and Georgian troops participate in stabilization efforts in Afghanistan and Iraq, and Armenian personnel serve in Iraq.

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On July 31, 2003, the Senate, facing obstacles to passage of its comprehensive energy bill (S. 14), substituted the energy legislation the Senate had passed and sent to conference in the 107th Congress. Principals are sorting out the implications of this unanticipated development; there are identical or similar provisions in both S. 14 and the substitute measure that the Senate passed as H.R. 6, but there are also significant differences.

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Cyprus has been divided since 1974. Greek Cypriots, nearly 80% of the population, live in the southern two thirds of the island. Turkish Cypriots live in the “Turkish Republic of Northern Cyprus” (recognized only by Turkey), with about 30,000 Turkish troops providing security. U.N. peacekeeping forces maintain a buffer zone between the two. Members of Congress have urged the Administration to be more active, although they have not proposed an alternative to the U.N.-sponsored talks.

The entry into force, on January 1, 1994, of the North American Free Trade Agreement (NAFTA) has eliminated the advantage that the beneficiaries of the Caribbean Basin Economic Recovery Act (CBERA) and related provisions of the Caribbean Basin Initiative (CBI) had enjoyed in trade with the United States relative to Mexico, and gave Mexico an increasingly significant competitive edge over the CBERA countries. The scheduled further implementation of the NAFTA would have resulted in a substantial advantage to Mexico over the CBERA countries and vitiate in part the purpose of the CBERA.

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This report presents an overview of the Armenia-Azerbaijan conflict. This is a clash between the principles of territorial integrity and self-determination that is occurring in the Caucasus, creating the longest inter-ethnic dispute in the former Soviet Union. The report includes the background and analysis of history, warfare and peace process in the region. The report discusses the Armenian and Azerbaijani perspective, the role and views of others (Iran, Turkey, Russia), as well as the U.S. policy regarding the conflict.