Caucasus Peace and Stability Act of 1997

Caucasus Peace and Stability Act of 1997 - Declares that it is the policy of the United States to: (1) promote a negotiated settlement of the Nagorno-Karabagh conflict through active participation in the Minsk Group of the Organization for Security and Cooperation in Europe (OSCE); (2) act as an impartial mediator, facilitating direct talks between Nagorno-Karabagh and Azerbaijan, and remain neutral on the status and security issues being negotiated by the parties to the conflict; (3) not take any action that would jeopardize the ongoing efforts of the OSCE Minsk Group to reach a peaceful solution to the conflict; and (4) foster confidence-building measures and help create incentives for peace which will lead to a lasting and equitable long-term settlement of the conflict.

Sets forth the following prohibitions and requirements if the Government of Azerbaijan is engaging in armed aggression or renewed use of force against Armenia or Nagorno-Karabagh. Prohibits any U.S. person from operating or investing in Azerbaijan or trading in goods or services from Azerbaijan. Prohibits issuance of a license under the Arms Export Control Act for the export to Azerbaijan of any defense or dual-use article, service, or other technology. Directs the President to instruct the U.S. Executive Director of each international financial institution of which the United States is a member to use the U.S. voice and vote to oppose any loan or other utilization of the funds of the respective institutions to or from Azerbaijan. Authorizes the President to waive such prohibitions or requirements on a case-by-case basis if it is important to the U.S. national interest to do so.