Azerbaijan and the EU Deepen Cooperation: A New Landscape of Energy and Geopolitics

Azerbaijan and the EU are deepening cooperation in three key areas: peacebuilding, energy exports, and regional transport. This strategic partnership is reshaping the economic and geopolitical landscape of Eurasia.

On September 18, Azerbaijani President Ilham Aliyev met with EU Commissioner Marta Kos in Baku. The two sides held in-depth discussions on strengthening cooperation in the areas of peacebuilding, energy exports, and regional transport.

Commissioner Kos congratulated President Aliyev on his achievements in normalizing relations between Armenia and Azerbaijan and advancing the peace agenda, and reiterated the EU's continued support for efforts to achieve lasting peace in the region.

01 Peace Process: EU Support and Regional Stability

The EU commended Azerbaijan's achievements in the regional peace process. Commissioner Kos particularly praised Azerbaijan's work in humanitarian mine clearance, which is crucial for post-war reconstruction and regional security.

President Aliyev emphasized that Azerbaijan will continue to advance the regional peace process. This commitment builds on the significant progress the country has made in recent years in resolving the Nagorno-Karabakh conflict.

In January 2024, Azerbaijan and Armenia fully resolved their differences over Nagorno-Karabakh, mediated by Russia. Subsequently, in August 2025, the two countries signed the Agreement on Peace and Establishment of Interstate Relations, brokered by the United States, creating new conditions for regional cooperation.

The EU actively supports this peace process and has pledged to fully invest in Azerbaijan and Armenia to promote regional economic growth.

02 Energy Cooperation: From Natural Gas to Green Transformation

Energy cooperation is a core pillar of Azerbaijan-EU relations. During the talks, President Aliyev noted that Azerbaijan's natural gas exports currently reach 10 European countries, including eight EU member states, and that exports are continuously expanding.

EU-Azerbaijan energy cooperation began in July 2022, when the two sides signed a memorandum of understanding on energy cooperation, pledging to increase Azerbaijan's natural gas exports to Europe. This cooperation has become even more important following the Russia-Ukraine conflict, as the EU seeks to reduce its dependence on Russian energy.

Azerbaijan is transitioning to green energy. The country plans to increase the share of renewable energy in its electricity generation to 33% by 2028 and further to 50% by 2050.

The EU is supporting this transition, signing a Memorandum of Understanding on Wind Energy Cooperation in March 2024, paving the way for European renewable energy companies to tap into Azerbaijan's vast wind energy resources. [citation:7]

03 Transport Connectivity: The Strategic Value of the Trans-Caspian Corridor

Regional transport connectivity was another focus of the talks. President Aliyev noted the region's enormous potential for building transport connectivity and highlighted Azerbaijan's progress in developing road and transportation infrastructure in the liberated areas.

The road and railway line to Zangilan is particularly significant. This line, part of the "Zangezur Corridor" connecting Azerbaijan with the exclave of Nakhchivan, is crucial for enhancing regional economic integration.

Both sides noted the significant increase in cargo volume transported from Central Asia to Azerbaijan via the "Middle Corridor." This Trans-Caspian International Transport Corridor originates in China, passes through Kazakhstan and the waters of the Caspian Sea to Azerbaijan and Georgia, and can extend to Turkey and European countries.

Fariz Aliyev, Director of the Transport Policy Department of the Ministry of Digital Development and Transport of Azerbaijan, stated: "In 2024, the number of China-Europe freight trains passing through Azerbaijan was 358. Our goal this year is to increase this to 450, and the medium-term goal is 1,000 trains per year."

04 Geopolitics: The Wisdom of Small-State Big Diplomacy

Located in the Caucasus region at the junction of the Eurasian continent, Azerbaijan faces a complex geopolitical and security environment and has always been a battleground for great power competition. In recent years, Azerbaijan's diplomacy has become increasingly active, demonstrating distinct characteristics of "small-state big diplomacy."

Since its independence, Azerbaijan has been cautious in handling relations with major powers, adhering to a diversified and balanced diplomacy with major powers, pursuing a neutral security policy, an open economic policy, and a pluralistic cultural policy.

The country has actively developed strategic partnerships with the United States, China, and Europe, joining NATO's Partnership for Peace and the EU's Eastern Partnership, and supporting China's Belt and Road Initiative.

Azerbaijan's relations with Russia have recently faced challenges. Following the December 2024 crash of an Azerbaijan Airlines passenger plane in western Kazakhstan, relations between the two countries deteriorated.

The subsequent deaths of two Azerbaijani citizens in Russian custody embroiled the two countries in a full-scale diplomatic crisis. This presented a new strategic opportunity for Azerbaijan and the EU to strengthen cooperation.

05 Economic Ties: Trade Figures and Future Prospects

Economic ties between the EU and Azerbaijan are growing stronger. In 2024, trade volume reached approximately $20 billion.

In the first two months of 2025, bilateral trade increased by 40.1% year-on-year, with Azerbaijan's exports to the EU increasing by 40.7% and imports from the EU increasing by 36%.

EU countries account for 74.6% of Azerbaijan's total exports and 11.7% of its imports, demonstrating the Azerbaijani economy's strong dependence on the EU market.

During her visit to Baku in April 2025, the new EU High Representative for Foreign Affairs and Security Policy, Katya Kallas, clearly stated: "The European Union attaches great importance to its relations with Azerbaijan and is eager to deepen them."

This economic interdependence provides a solid foundation for cooperation between the two sides in the areas of peacebuilding, energy, and transportation.

Azerbaijan's cooperation with the EU has transcended simple bilateral relations.

Azerbaijan is working with Kazakhstan and Uzbekistan to build a "Green Energy Corridor" to Europe. They plan to lay a high-voltage cable under the Caspian Sea to transport clean electricity from Central Asia to the European market.

This corridor will not only transport energy but also connect the digital infrastructure of Asia and Europe, becoming a new bridge for communication between East and West.

With the continuous development of the Middle Corridor, Azerbaijan is transforming from a geopolitical battlefield to a link between the East and the West, providing new impetus for energy security, smooth trade and regional cooperation in Eurasia.