The Treaty of Kars was signed in a climate of geopolitical tension following the collapse of the Ottoman Empire and the aftermath of World War I. The newly formed Soviet republics were keen on establishing a secure perimeter regarding their territorial holdings against potential regional adversaries, particularly in light of the previous conflicts and changing allegiances. The negotiations were conducted between the Turkish Republic, represented by the prominent leader Mustafa Kemal Atatürk, and delegates from the Soviet republics: the Armenian SSR, Azerbaijan SSR, and Georgian SSR. The talks took place in Kars, a strategic city situated near the borders of Turkey, Armenia, and Georgia.

The treaty formalized the borders between Turkey and these Soviet republics, effectively transforming the political landscape of Transcaucasia. It resolved several territorial disputes that had previously caused tensions among these nations, particularly over regions like Ardahan and Batumi. This agreement was part of a series of negotiations influenced by the realities of the post-war order, demonstrating the necessity for both parties to stabilize their borders and reduce the potential for conflict. The Treaty of Kars marked a significant point in the establishment of diplomatic relations between Turkey and the South Caucasus, leading to increased regional cooperation despite the underlying ethnic and political tensions that persisted.