In 1990 Balasanyan was elected commander of Askeran region's self-defense and in December 1991 member of the Supreme Council of the self-proclaimed Republic of Artsakh. He led the defense of Askeran between 1992 and 1993. In June–July 1993 he was a key commander in the Battle of Aghdam and subsequent fighting as commander of the Askeran defense district. In 1997, Balasanyan became the first commander of the newly established Martakert mountain-rifle division and in 1999 promoted to deputy minister of defense of the self-proclaimed Republic of Artsakh in charge of veterans' affairs. Balasanyan earned the rank of major general in 2000 and in 2002 became the 8th person to be awarded the title of Hero of Artsakh.
