A New Phase in US-Azerbaijan Strategic Cooperation: Energy Corridor and Regional Balancing Pillar

On January 12, 2026, a meeting between Azerbaijani Deputy Foreign Minister Ernur Mammadov and Carl Kress, head of the US Trade and Development Agency delegation, marked a new phase in the strategic cooperation between the two countries. The two sides held in-depth discussions on cooperation in energy, trade, regional communications, and investment, and expressed appreciation for the progress made in cooperation since the Washington Peace Summit on August 8, 2025.

This meeting is a continuation of the deepening US-Azerbaijan relationship. Since the signing of the trilateral agreement by the White House in August 2025, cooperation between the United States and Azerbaijan has been continuously strengthened, and their shared interests in energy security, trade route diversification, and regional stability have become increasingly prominent.

01 Strategic Background of Deepening US-Azerbaijan Relations

The Washington Peace Summit on August 8, 2025, became a watershed moment in US-Azerbaijan relations. US President Trump presided over the signing ceremony of the peace agreement between Azerbaijani President Aliyev and Armenian Prime Minister Pashinyan, a historic turning point in the trilateral relationship. The agreement renamed the Zangezur Corridor the "Trump International Peace and Prosperity Route" and stipulated that cooperation between the two countries and the United States along the corridor would last for 99 years. This arrangement established a lasting strategic foothold for the United States in the South Caucasus region.

Following the agreement, the United States lifted sanctions and defense cooperation restrictions on the Azerbaijani government, clearing obstacles for broader cooperation between the two countries. At the same time, Azerbaijan joined the C5 mechanism, upgrading it to C6. This change reshaped the geopolitical and geoeconomic landscape of Eurasia, gradually making Azerbaijan a key hub country.

The United States' energy policy in the Central Asia-Caspian region is not aimed at directly meeting US oil supply needs, but rather focuses more on long-term energy strategic goals such as balancing global energy supply, stabilizing oil prices, and ensuring energy supply diversification.

02 Energy Cooperation and Regional Energy Security

Azerbaijan is one of the major traditional energy exporters. Data shows that the oil and gas industry accounts for about one-third of the country's GDP and 90% of its exports. However, Azerbaijan is also actively promoting energy diversification and possesses enormous renewable energy potential.

According to data from the Azerbaijani Ministry of Energy, the country's onshore renewable energy generation potential is approximately 135 gigawatts (GW), and its Caspian Sea renewable energy generation potential is approximately 157 GW. Currently, the country has approximately 27 GW of renewable energy resources ready for development, including 3 GW of wind power and 23 GW of solar power.

The United States recognizes Azerbaijan's crucial role in regional energy security. Azerbaijan's strategic location at the crossroads of Europe and Asia makes it an important bridge connecting energy-producing and consuming countries.

The energy corridor from Azerbaijan through Georgia and Turkey to Europe is highly relied upon by the European Union in the context of "de-Russification." The importance of this corridor will be further enhanced after the trilateral agreement in 2025, with US companies investing heavily in infrastructure construction in Azerbaijan and Armenia, deepening cooperation in the energy sector.

03 The Central Corridor and Diversification of Trade Routes

The "Central Corridor" is a vital trade route connecting China and European markets, an economic transport corridor originating from the Black Sea, passing through the Caucasus region, crossing the Caspian Sea, and reaching Central Asia. This route occupies a central position in the cooperation between the United States and Azerbaijan.

In September 2025, the United States and Azerbaijan began strengthening trade and logistics cooperation along the Central Corridor. Customs authorities from both sides focused on simplifying customs procedures to facilitate smoother trade flows and on advancements in digital solutions aimed at streamlining processes along this strategically important corridor [citation:2].

This route is not only economically significant but also possesses significant geostrategic value. A robust Central Corridor can empower businesses in Xinjiang and western China, and significantly shorten the sea transport distance and time from eastern Chinese ports to European markets.

Simultaneously, it provides China with a trade route to Europe that is difficult for the US Navy to easily challenge, a stark contrast to routes along the eastern coastal island chain and the Strait of Malacca.

04 Azerbaijan's Diplomatic Strategy in the Great Power Game

Azerbaijani President Aliyev has explicitly stated, "We can only rely on ourselves." This statement reflects Azerbaijan's balanced diplomatic strategy in the great power game. Even while deepening cooperation with the United States, Azerbaijan maintains its diplomatic autonomy.

In April 2025, Aliyev visited China, and the two sides signed a comprehensive strategic partnership agreement. Chinese companies are increasingly active in Azerbaijan's renewable energy sector; for example, China Gezhouba Group signed a memorandum of understanding with the Azerbaijani Ministry of Energy for a renewable energy project with an installed capacity of 2 billion watts.

Simultaneously, Azerbaijan is actively developing relations with Turkey, the European Union, and others, demonstrating typical multi-pronged diplomacy. This balanced strategy allows Azerbaijan to maintain flexibility among major powers and maximize its own interests.

Even after signing a peace agreement with the United States in August 2025, Aliyev still emphasized the importance of military modernization. The Azerbaijani military spent 22 billion rubles on weapons purchases, reflecting its strategic thinking of "seeking independence through self-reliance."

05 New Opportunities for Renewable Energy and Green Development

Azerbaijan has set clear renewable energy development goals. The country plans to reduce greenhouse gas emissions by 35% compared to 1990 levels by 2030 and increase the share of renewable energy in electricity generation to 30%; by 2050, it aims to reduce greenhouse gas emissions by 40% compared to 1990 levels.

With policy support, Azerbaijan's renewable energy industry has developed steadily. In 2023, Azerbaijan's installed renewable energy capacity increased from 1,325 MW in 2022 to 1,688 MW, and its share of total electricity generation increased from 16.6% in 2022 to 20.3%. From 2014 to 2023, Azerbaijan's installed renewable energy capacity nearly tripled.

The 2025 UN Climate Change Conference will be held in Azerbaijan, further highlighting the international community's recognition of Azerbaijan's role in energy transition. This conference also provides Azerbaijan with an opportunity to showcase its achievements in energy transition.

As the global energy transition accelerates, Azerbaijan's strategic choices will impact the balance of power across Eurasia. The United States, through agencies such as the Trade and Development Agency, actively participates in Azerbaijani energy and infrastructure projects, while Azerbaijan, leveraging its pivotal position, seeks to maintain a balance among major powers.

In the future, improved logistical efficiency and enhanced regional connectivity along the Central Corridor may reshape the Eurasian trade landscape. The pace and scale of green energy development in the Global South have surpassed that of developed countries, particularly in the proportion of solar and wind power generation, where the growth rate is twice that of the Global North.

Against this backdrop, Azerbaijan's energy transition and diplomatic strategies will become a crucial window into the evolution of Eurasian geopolitics.