The United States recognized the independence of Armenia, Azerbaijan, and Georgia when the former Soviet Union broke up at the end of 1991. 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 United States has pursued close ties with Armenia to encourage its democratization and because of concerns by Armenian-Americans and others over its fate. Close ties with Georgia have evolved from U.S. contacts with its pro-Western leadership. The Bush Administration supports U.S. private investment in Azerbaijan's energy sector as a means of increasing the diversity of world energy suppliers and to encourage building multiple energy pipelines to world markets. The United States has been active in diplomatic efforts to end conflicts in the region, several of which remain unresolved. The FREEDOM Support Act of 1992 (P.L. 102-511) authorizes assistance to the Eurasian states for humanitarian needs, democratization, creation of market economies, trade and investment, and other purposes. Section 907 of the act prohibits most U.S. government-to-government aid to Azerbaijan until its ceases blockades and other offensive use of force against Armenia. In the aftermath of the September 11, 2001, terrorist attacks on the United States, the Administration appealed for a national security waiver for Section 907, in consideration of Azerbaijan's support to the international coalition to combat terrorism. In December 2001, Congress approved foreign appropriations for FY2002 (P.L. 107-115) that granted the President authority to waive Section 907, renewable each calendar year under certain conditions. President Bush exercised the waiver most recently in March 2007. As part of the U.S. Global War on Terror, the U.S. military in 2002 began providing equipment and training for Georgia's military and security forces. Azerbaijani troops participate in stabilization efforts in Afghanistan and Iraq, and Armenian and Georgian personnel serve in Iraq. Georgia has announced that it will soon send some troops to Afghanistan. Key issues in the 110thCongress regarding the South Caucasus are likely to focus on bolstering Georgia's democratization and security; Azerbaijan's energy development; and Armenia's independence and economic development. At the same time, concerns might include the status of democratization and human rights in Azerbaijan, the on-going Armenia-Azerbaijan conflict over the breakaway Nagorno Karabakh region, and threats posed to Georgia by ongoing separatism and Russian actions. Congress will likely scrutinize Armenia's and Georgia's reform progress as recipients of Millennium Challenge Account grants. Some Members of Congress believe that the United States should provide greater attention to the region's increasing role as an east-west trade and security corridor linking the Black Sea and Caspian Sea regions. They urge greater U.S. aid and conflict resolution efforts to contain warfare, crime, smuggling, and Islamic extremism and to bolster the independence of the states. Others urge caution in adopting policies that will heavily involve the United States in a region beset by ethnic and civil conflicts. [ABSTRACT FROM AUTHOR]