The republics of the South Caucasus, which were under the control of the Moscowcentric authorities for most of the 20th century, gained political sovereignty within the modern international relations system following the disintegration of the USSR. This coincided with the South Caucasus’ emergent role as one of the important arenas for regional and global struggles. Due to its geopolitical location, natural resource wealth, and other factors, the South Caucasus has since become a target for the influence of major world powers. Based on this general picture, this study focuses on the importance of the South Caucasus for the West (especially the US), Russia, Turkey, Iran, China and other powers. The paper analyzes their respective struggles to establish and increase sphere of influence in the region. The central argument is that compared to other regional powers and neighboring states, the US and Russia managed to develop effective and influential policies in the South Caucasus.