LONDON 

The president of the European Council welcomed a newly-announced agreement Thursday between Azerbaijan and Armenia for the release of detainees and taking "tangible steps" toward building confidence.

"Delighted to welcome a major break-through in Armenia-Azerbaijan relations as they issue a joint statement. Welcome in particular release of detainees and unprecedented opening in political dialogue," Charles Michel wrote on X.

Azerbaijan and Armenia announced in a statement late Thursday that they agreed to mutually release detainees in a step toward peace.

“The Republic of Armenia and the Republic of Azerbaijan share the view that there is a historical chance to achieve a long-awaited peace in the region. Two countries reconfirm their intention to normalize relations and to reach the peace treaty on the basis of respect for the principles of sovereignty and territorial integrity,” according to the statement that was quoted by Azerbaijan’s state-run news agency, AZERTAC.

Establishing and deepening dialogue between the two countries has been a key objective of the EU-led Brussels process, said Michel, adding that "today’s progress is a key step."

Michel noted that he encourages the leaders to finalize a peace deal as soon as possible.

EU foreign policy chief Josep Borrell said this an "important political step."

"We concur - there is a historic chance to achieve peace in the region &are committed to supporting these efforts," he wrote on X.

Azerbaijan released 32 Armenian military servicemen and Armenia released two Azerbaijani soldiers "driven by the values of humanism and as a gesture of goodwill."

In addition, Armenia supports Azerbaijan in its bid to host the COP29 Summit in 2024, while Azerbaijan supports the Armenian candidacy for Eastern European Group COP Bureau membership.

"The Republic of Armenia and the Republic of Azerbaijan will continue their discussions regarding the implementation of more confidence building measures, effective in the near future and call on the international community to support their efforts that will contribute to building mutual trust between two countries and will positively impact the entire South Caucasus region," added the statement.

Relations between Azerbaijan and Armenia have been tense since 1991 when the Armenian military occupied Nagorno-Karabakh, a territory internationally recognized as part of Azerbaijan, and seven adjacent regions.

Azerbaijan liberated most of the region during the war in the fall of 2020, which ended with a Russian-brokered peace agreement, opening the door to normalization.

In September, the Azerbaijani army initiated an anti-terrorism operation in Karabakh to establish constitutional order, after which illegal separatist forces in the region surrendered.