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YEREVAN: Arch foes Armenia and Azerbaijan on Sunday accused each other of initiating deadly clashes that claimed at least 23 lives over a decades-long territorial dispute and threatened to draw in regional powers Russia and Turkey.

The worst clashes since 2016 have raised the spectre of a fresh war between long-standing rivals Azerbaijan and Armenia which have been locked for decades in a territorial dispute over the Armenia-backed breakaway region of Nagorny Karabakh.

Sixteen Armenian separatist fighters were killed and more than 100 wounded in fighting, rebel officials said.

Both sides also reported civilian casualties.

"We are tired of Azerbaijan's threats, we will fight to the death to resolve the problem once and for all," Artak Bagdasaryan, 36, told AFP in Yerevan, adding that he was waiting to be conscripted into the army.

Karabakh separatists said one Armenian woman and a child were killed, while Baku said that an Azerbaijani family of five died in shelling launched by Armenian separatists.

Armenian defence ministry spokesman Artsrun Hovhannisyan claimed Karabakh rebel forces killed "some 200 Azerbaijani troops and destroyed 30 enemy artillery units and 20 drones".

Azerbaijan said it has captured a strategic mountain in Karabakh that helps control transport communications between Yerevan and the enclave.

A major confrontation between Muslim Azerbaijan and majority Christian Armenia threatened to embroil regional players Moscow and Ankara and Armenian Prime Minister Nikol Pashinyan called on global powers to prevent Turkey from getting involved in the conflict.

"We are on the brink of a full-scale war in the South Caucasus," Pashinyan warned.

Azerbaijan's "authoritarian regime has once again declared war on the Armenian people", he added.

France, Germany, Italy, and the EU swiftly urged an "immediate ceasefire," while Pope Francis prayed for peace.

Russian President Vladimir Putin discussed the military flareup with Pashinyan and called for "an end to hostilities". "The Russian side expressed serious concern over the resumption of large-scale clashes," the Kremlin said.

But Azerbaijan's ally Turkey blamed Yerevan for the flare-up and promised Baku its "full support".

"The Turkish people will support our Azerbaijani brothers with all our means as always," Turkish President Recep Tayyip Erdogan tweeted.

Azerbaijan accused Armenian forces of violating a ceasefire, saying it had launched a counter-offensive to "ensure the safety of the population", using tanks, artillery missiles, combat aviation and drones.

In a televised address to the nation earlier Sunday, Azerbaijan President Ilham Aliyev vowed victory over Armenian forces.

"Our cause is just and we will win," he said, echoing a famous quote from Soviet dictator Joseph Stalin's address at the outbreak of World War II in Russia.

"Karabakh is Azerbaijan," he said.

Both Armenia and Karabakh declared martial law and military mobilisation.

Azerbaijan imposed military rule and a curfew in large cities.

"Get ready to defend our sacred homeland," Pashinyan said on Facebook.

Armenia said that Azerbaijan attacked civilian settlements in Nagorny Karabakh including the main city Stepanakert.

Pashinyan's wife, Anna Hakobyan, said that she had travelled to a hospital in Stepanakert to be with her Karabakh "brothers and sisters". Azerbaijan's foreign ministry said there were reports of dead and wounded. "Extensive damage has been inflicted on many homes and civilian infrastructure," it said.

Ethnic Armenian separatists seized the Nagorny Karabakh region from Baku in a 1990s war that claimed 30,000 lives.

Talks to resolve one of the worst conflicts to emerge from the 1991 collapse of the Soviet Union have been largely stalled since a 1994 ceasefire agreement.

France, Russia and the United States have mediated peace efforts as the "Minsk Group" but the last big push for a peace deal collapsed in 2010.

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