Yerevan/Mediamax/. President of Azerbaijan Ilham Aliyev said that "Armenia is in the state of enormous anxiety and confusion because of Azerbaijan’s military capabilities.”

Ilham Aliyev said this at the session of the Cabinet of Ministers of Azerbaijan, Mediamax reports quoting Trend agency.

“According to the information we have Armenia is in the state enormous anxiety and confusion because of Azerbaijan’s military capabilities. We receive this information from various sources and they have no possibilities to oppose us. They fled the battlefield at elections to UN Security Council. You know that Armenia was also nominated. Then they quietly stepped aside because they knew they couldn’t fight with Azerbaijan. We have also saw them fleeing the real battlefield many times,” the Azeri leader said.

According to him, there are two ways to settle the conflict: negotiations and the military way.

“We don’t want a war. Who does? The Azeri state that has achieved such great success doesn’t want it either. But it doesn’t mean that the negotiation process remains aside and all the efforts are directed to the war. It will not happen! We have stated before that we accept he proposals presented to the sides in late 2009. The principles were put forward not by us but by the Co-Chairs. If these principles are still in force then the conflict may be settled. I would like to reiterate the key points. Territorial integrity of Azerbaijan is not questioned, the citizens of Azerbaijan return to all occupied lands in the future, and proposals on the status of Nagorno Karabakh will be put forward at an indefinite time in an indefinite form. Nagorno Karabakh won’t be granted any status without the agreement of Azerbaijan. And, naturally, the state of Azerbaijan and the people of Azerbaijan can’t and won’t agree to any status for Nagorno Karabakh outside Azerbaijan. This is the essence of the principles. We are ready to continue the talks based on these principles and if the opposite side takes the same steps the issue may be resolved in the nearest future. At the same time it’s not a secret that we are building up our military might,” said Ilham Aliyev.

He also said that Azerbaijan will direct $‌3bln 474mln to military expenses in 2012.

“We have the strongest army in the region, we buy the most modern armaments, aircraft and helicopters, and artillery- it’s hard to enumerate all. The quantity and the types of military output produced in Azerbaijan keeps growing. We manufacture about 600 types of military output. Today the army of Azerbaijan is a great force and we can and will use it when necessary,” Ilham Aliyev concluded.