The Kremlin on Thursday welcomed the positive developments between Azerbaijan and Armenia after the leaders of both countries ordered their top diplomats to launch preparatory work for peace discussions.

"The progress on concluding such a document is a very, very positive fact and is welcomed," Kremlin spokesperson Dmitry Peskov told reporters on Thursday.

Peskov's remarks came after Azerbaijani President Ilham Aliyev and Armenian Prime Minister Nikol Pashinian told their foreign ministers to start preparing for peace talks, after a meeting mediated by the European Council President Charles Michel in Brussels on Wednesday.

"An agreement was reached during the meeting ... to set up a bilateral commission on the issues of delimitation of the Armenian-Azerbaijan border, which will be in charge of ensuring security and stability along the frontier," Armenia's Foreign Ministry said.

The meeting came after a flare-up in Nagorno-Karabakh on March 25 that saw Azerbaijan capture a strategic village in the area under the Russian peacekeepers' responsibility, killing three separatist troops.