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Azerbaijani Politics Oil / Natural Gas / Green Energy Russia in Caucasus South Caucasus Region

Russia — Ukraine’s Accidental Matchmaker

Photo: Russia's President Vladimir Putin and Azerbaijan's President Ilham Aliyev leave after a state reception at the Gulustan Palace in Baku, Azerbaijan August 19, 2024. Credit: Sputnik/Mikhail Tereshchenko/Pool via REUTERS

Russian drones attacked an oil depot in Odesa in Ukraine on August 17. That’s not unusual, but that night’s target was notable in one important sense — the Kremlin struck high-profile infrastructure owned by SOCAR, Azerbaijan’s state oil company.

This was no accident. Russia had attacked the same SOCAR facility in Ukraine on August 8. Taken together with a series of other events, it has become clear that Putin’s men are sending a message. That comes at some risk to themselves and potential benefits for Ukraine.

These weren’t the first or even the most serious Russian acts of hostility against the energy-rich South Caucasian nation.  On Christmas Day, Russian missile batteries shot down a scheduled Azerbaijan Airways plane, killing 38 people. The incident caused uproar, not least because while the missile firing may have resulted from mistaken identity, Russian air controllers refused the badly damaged aircraft permission to land.

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MENA in Turbulence Oil / Natural Gas / Green Energy

The Gulf Showers Syria with Aid—in Return for Stability and Interests

The rapid fall of the Assad regime in Syria in December 2024 marked the culmination of dramatic changes to the geopolitical landscape of the Middle East. Following Assad’s escape to Russia, the rebel group Hayat Tahrir al-Sham (HTS) emerged as the decisive power broker in the new administration—aiming to stabilize Syria’s war-torn society, establish a unity government, and launch mass reconstruction to open a new, post-Assad era in the country’s history. To achieve these lofty goals, the new authorities aimed to build much stronger relations with Turkey—possibly transforming Ankara into its primary security partner—and the wealthy Gulf monarchies. Both the GCC states and Iran largely remained bystanders during HTS’s offensive against Assad—in large part because its lightning speed left little time for international action. After HTS routed Assad’s demoralized forces and seized power, Ankara thus became one of the primary actors in, and beneficiaries of, the new regional order.

In spite of Turkey’s pole position in Syria, the ambitious and energy-rich countries of the Gulf are also extremely important to the transitional Syrian government, given President Ahmed al-Sharaa’s attempts to gain international recognition and rebuild the ruined country. Indeed, al-Sharaa paid his first official foreign visit to Saudi Arabia in February 2025, followed by trips to the UAE, Qatar, Oman and Bahrain. While al-Sharaa’s Gulf tour highlighted Damascus’s new priorities, it also shed light on the critical role that Riyadh and the other Gulf monarchies will play in shaping Syria’s future.

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Azerbaijani Politics MENA in Turbulence Oil / Natural Gas / Green Energy South Caucasus Region

Azerbaijan’s Emerging Role in Post-Assad Syria

On May 4, an Azerbaijani delegation of state officials arrived in Damascus at the invitation of the interim Syrian government. Vice Prime Minister Samir Sharifov, who led the delegation, was received by Syria’s transitional President, Ahmad Al-Sharaa. The delegations discussed opportunities for collaboration in key areas, including the economy, energy, culture, and education. The visit followed a meeting between Al-Sharaa and Azerbaijan President Ilham Aliyev in Turkey at the Antalya Diplomacy Forum, where the two leaders explored the potential for closer ties.

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Azerbaijani Politics Iran in Caucasus and Beyond MENA in Turbulence Oil / Natural Gas / Green Energy South Caucasus Region

Azerbaijan redraws its foreign policy map

Aliyev invites interim Syrian President al-Sharaa to visit AzerbaijanIn the last five years, Azerbaijan has explicitly shifted its traditional foreign policy strategy by making inroads into regions far beyond the post-Soviet space, including the Balkans, Middle East, and more recently Sub-Saharan Africa, often through energy projects led by its well-known State Oil Company (SOCAR).

A revelation about the extent of Azerbaijan’s regional diplomatic outreach came during the annual conference in ADA University in Baku on April 9, when Azerbaijani President Ilham Aliyev commented on numerous issues regarding the geopolitical landscape, including on Azerbaijan’s stance toward the ongoing Israel-Turkey standoff. Commenting on the confrontation between two friendly nations — both Israel and Turkey are strategic allies of Baku — Aliyev for the first time revealed that Baku once successfully mediated the Israel-Turkey reconciliation in 2022, resulting in a re-opening of embassies after several years, even though shortly after the breakout of the Gaza War relations were repeatedly put on hold.

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Central Asia I China I Russia Oil / Natural Gas / Green Energy

Türkiye-Turkmenistan Gas Deal Opens Possibilities for New Routes

Turkey Imports Gas From Turkmenistan Via Iran Under Barter Deal – Eurasia  Review

Executive Summary:

  • In mid-February, Türkiye and Turkmenistan signed an agreement facilitating the flow of natural gas through Iran, a step to enhance Türkiye’s energy security and diversify its supply.
  • Iran’s infrastructure technical issues and the increased likelihood of U.S. sanctions could cause supply disruptions, as has occurred in the past.
  • Türkiye aims to establish itself as a key energy trade hub and create additional export routes, while Turkmenistan can export more gas through new routes, particularly to Europe.

On February 14, Türkiye’s Energy Minister, Alparaslan Bayraktar, announced that a new energy agreement was signed with Turkmenistan, strengthening the bilateral relations between Ankara and Ashgabat. The main stakeholders of the agreement are Türkiye’s state-owned pipeline operator BOTAŞ and Turkmenistan’s state-owned Turkmengaz. The new agreement envisages 2 billion cubic meters (bcm) of natural gas flow from Turkmenistan to Türkiye through Iran via its existing natural gas network, which began on March 1 (Caspian Post, February 14; Anadolu Ajansı, March 2). The new swap agreement is a remarkable milestone in enhancing Türkiye’s energy security and attempts to diversify its supply sources.

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Azerbaijani Politics Oil / Natural Gas / Green Energy South Caucasus Region

Azerbaijan’s Deepening Energy Ties With Israel

Azerbaijan has boosted ties with Israel despite Israel’s harsh prosecution of the Gaza war since the Hamas attack of October 7, 2023

Azerbaijan and Israel, which have long cultivated close ties in defense and intelligence, are strengthening cooperation in the energy field.

Last October, Azerbaijan’s State Oil Company (SOCAR) acquired a 10 percent stake in Israel’s Tamar gas field as part of the company’s Mediterranean upstream strategy. The investment, SOCAR’s first direct upstream venture in the Mediterranean, signals Azerbaijan’s intent to deepen its economic and geopolitical footprint in the Middle East while reinforcing its strategic alliance with Israel. SOCAR’s expansion into the Mediterranean basin intensifies Azerbaijan’s soft power and opens the prospect of additional gas exports to southeastern Europe. SOCAR reportedly bought the stake from Union Energy, which is operated by Chevron.

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Oil / Natural Gas / Green Energy

Turkey’s investment flows boost Romania’s solar power potential

Turkey’s investment flows boost Romania’s solar power potential

Turkey has emerged as a relatively new, strong actor in Romania’s renewable energy sector through recent investments and joint ventures. Turkey’s interest in Romania’s energy field is driven not only by economic interests and soft power diplomacy but also by the strong demand for additional energy sources.

Turkey’s growing investments in Romania reflect its broader geopolitical interests. Since 2023, Turkish investors have entered the market through acquisitions, joint ventures and new solar projects and began carrying out projects in the same year.

This also reflects the recent strong growth of Romania’s renewables sector. Romania closed 2024 with 5 GW of installed photovoltaic capacity, a significant increase compared to the 3.2 GW recorded in 2023. Undoubtedly, ongoing global and regional upheavals, particularly the Russo-Ukraine war and climate change, pushed Romania to focus more on its national green strategy.

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Azerbaijani Politics Oil / Natural Gas / Green Energy

Ukraine eyes key role in Azerbaijani gas transit to Europe

COMMENT: Ukraine eyes key role in Azerbaijani gas transit to Europe

Ukraine is positioning itself as a key transit hub for Azerbaijani gas to Europe, a move that could significantly alter the region’s energy landscape.

If successful, this would carve out a new role for Kyiv after Russian supplies stopped flowing to the rest of Europe via Ukraine on January 1, pushing up European wholesale energy prices.

The expiration of the Russian gas deal at the beginning of 2025 and Kyiv’s decision not to prolong the agreement triggered heated debates within the European Union as countries like Hungary and Slovakia harshly criticised Ukraine, accusing it of igniting the energy crisis with no drastic impact on Russia.

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Azerbaijani Politics Oil / Natural Gas / Green Energy South Caucasus Region Turkey-Azerbaijan Partnership

Azerbaijan’s SOCAR Invests in Türkiye’s Energy Sector

SOCAR Turkey expects rise in EBITDA to $1 bln in 2021 – The Tribune
Publication: Eurasia Daily Monitor Volume: 22 Issue: 6

Executive Summary:

  • On January 6, the State Oil Company of the Republic of Azerbaijan (SOCAR) announced plans to invest in Türkiye’s energy sector. This move would strengthen bilateral ties and allow Baku to expand its influence in Europe and the Middle East.
  • SOCAR is critical in meeting Türkiye’s growing natural gas demand while advancing eco-friendly initiatives such as sustainable aviation fuel production, aligning with Azerbaijan’s green energy strategies.
  • Azerbaijan’s soft power is fueled by SOCAR through investments and diplomatic engagement, including potential energy supplies to Syria. This reflects Baku’s multivector foreign policy amid shifting Middle East geopolitics.

On January 6, the State Oil Company of the Republic of Azerbaijan (SOCAR) announced plans to invest $7 billion in Türkiye’s energy sector in the coming years (Report.az, January 6). Between 2008 and 2024, SOCAR Türkiye, SOCAR’s local subsidiary, invested $2 billion into the development of the petrochemical facilities of the Petkim petrochemical company privatized by SOCAR. The total investments of the company in the Turkish economy accounted for more than $18 billion in the same period, making the company the largest foreign investor in the country (ABC.az, January 6).

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Oil / Natural Gas / Green Energy

European countries plan hydrogen import infrastructure to achieve climate goals

Hydrogen exports to shift to ammonia production by 2035

In light of global warming, resource extinction, natural disasters, and frequent heated debates on climate action in the West, hydrogen is the hope for achieving ambitious climate goals. Whether used in fuel cells to power vehicles, as a feedstock in industrial processes, or as an energy carrier to store and transport renewable energy, hydrogen offers solutions to decarbonise hard-to-abate sectors.

Indeed, hydrogen as an energy carrier has properties that are important for a reliable energy system, such as easy transport and storage capability. Moreover, hydrogen can replace fossil fuels to drastically reduce emissions in industries such as steelmaking and chemicals, where electrification is difficult.

Consequently, given hydrogen’s huge potential for energy transition, many European countries are keen on exploring ways of importing it.