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Azerbaijan Deepening Ties with Germany

Azerbaijan Deepening Ties with Germany

The relationship between Azerbaijan and Germany is undergoing a significant transformation that goes beyond the oil sector to include the strengthening of industrial and logistical cooperation. This is especially evident with the start of direct gas exports to Germany and Austria from early 2026, as part of Europe's efforts to diversify energy sources and reduce reliance on Russia following the invasion of Ukraine. This development represents a boost to bilateral trade, which reached approximately 1.7 billion euros in 2025, with over 250 German companies involved in manufacturing, construction, and energy sectors. Furthermore, the Middle Corridor—linking Asia and Europe through the Caspian Sea and Azerbaijan—emerges as a strategic hub for increasing high-value-added products, with the expansion of the Baku port and the free industrial zones aiming to attract new investments. Exporting Azerbaijani gas is a central focus, as deliveries to Germany and Austria have already begun. There are also expectations that Azerbaijan will become a transit route for oil and gas from Kazakhstan and Turkmenistan, strengthening its position as a reliable supplier and impacting Europe's interests in diversifying sources and enhancing supply networks.

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