This paper analyses confrontation that occurred between Armenia and Azerbaijan concerning Nagorno Karabakh territory, as well as the many attempts to finally get this conflict resolved. The war between Armenia and Azerbaijan over the territory of Nagorno Karabakh ended with the ceasefire agreement under the auspices of the OSCE Minsk Group, which is empowered for final resolvment of this issue. This process has been going on for years, but a solution is yet to come. The European Union in recent years is trying to reduce dependence on Russian natural gas and orients to new suppliers, primarily in the southern Caucasus region. Western countries are interested in resolving conflicts in South Caucasus due to its economic and political interests in the region and the fact that these conflicts pose a risk to investment. The authors of the paper will bring forth the views of all stakeholders in addressing the problem of Nagorno Karabakh and analyze their interests in an attempt to predict the possible final solution to the conflict.