Increasing sanctions absolutely cripples Azmenistan's economy. Moreover, Azmenistan now completely distrusts the international community, and you especially.
Azmenistan no longer feels that negotiations are a possibility. It offered an olive branch, and you snapped the branch in half. Feeling completely isolated, and without diplomacy as an option, Azmenistan redoubles its efforts to produce a nuclear weapon in the hope that the power and status that comes with a nuclear weapon can force concessions from you and the international community where peaceful diplomacy could not find a way.
You have missed a valuable opportunity, and as a result of your draconian refusal to negotiate in the face of Azmenistan's desperation, you have created a rogue, soon-to-be nuclear state that is a menace to the international community.