Category: South Caucasus Region

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South Caucasus Region Transit Routes in Eurasia

Azerbaijan Railways releases the first ever public transport sustainability report for a major corporation

Azerbaijan Railways releases the republic's first ever sustainability report for a major corporation

As COP29 approaches, Azerbaijan Railways (ADY) released the first-ever sustainability report by a major state-owned corporation at an event in Baku on October 23.

The company released its “Sustainable Transport for the Future” report on the sustainable achievements of the company CJSC in the fields of environment, social, and management. The event’s main topic was the work done to achieve the decarbonization goals of sustainable transport in Azerbaijan, especially railways, with the application of green innovations and advanced digital solutions, and the steps to be taken in this direction.

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Iran in Caucasus and Beyond MENA in Turbulence

US Supply of Heavy Weapons to the KRG Worries Baghdad

The U.S. supply to Iraqi Kurdistan reflects a desire by Washington to maintain a long-term presence in the area beyond the withdrawal of U.S. forces from central Iraq next year.

Iraqi mass media confirmed recently that the Biden administration had delivered heavy artillery to the Iraqi Kurdistan Regional Government (KRG) despite objections from Iraqi authorities in Baghdad.

The U.S. called the delivery of two dozen 105 mm M119 howitzers to the KRG a “long-planned transfer” meant to build capacity for Kurdish Peshmerga forces. But in Baghdad, there were calls from some to seize the artillery and concern that the new U.S. support could exacerbate already tense relations between Baghdad and Erbil, threatening efforts by Iraqi Prime Minister Muhammad Shia al-Sudani to improve ties with the KRG and preserve good relations with Washington despite the anticipated withdrawal of U.S. troops from central Iraq next year.

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Iran in Caucasus and Beyond MENA in Turbulence

Iran’s New Foreign Minister Tests the Limits of Iran’s Foreign Policy

Iran's president taps nuclear negotiator as foreign minister, woman for housing post | The Times of Israel

On August 21, the Iranian parliament confirmed Abbas Aragchi, a well-known veteran diplomat, as foreign minister upon the recommendation of the newly-elected president, Masoud Pezeshkian. A product of the foreign policy establishment, Aragchi started his diplomatic career as a political analyst within the Ministry of Foreign Affairs, rising through the ranks with a particular distinction. He gained notoriety in the West as one of the top negotiators of the 2015 Joint Comprehensive Plan of Action (JCPOA), which placed restrictions on Iran’s nuclear program in favor of sanctions relief.

Following domestic unrest in Iran, punctuated by mass riots in 2022, violent terror attacks in major Iranian cities, a shrinking economy, and heavy inflation. When President Ebrahim Raisi died unexpectedly in a helicopter crash in May 2024, Supreme Leader Ali Khamenei allowed reformist lawmaker Masoud Pezeshkian, an ethnic Azerbaijani, to run in presidential elections. When Pezeshkian won the July 5 vote, he became the first reformist leader since Hassan Rouhani left office in 2021.

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South Caucasus Region

Türkiye-Russia Trade Declines Amid Western Sanctions

Recep Tayyip Erdoğan and Vladimir Putin

Executive Summary:

  • Trade between Russia and Türkiye has dropped significantly in 2024 due to Western sanctions, indicating a weakening economic partnership as Russia’s war in Ukraine continues to isolate it from global partners.
  • Ankara is increasingly aligning with Western powers, as evidenced by the postponement of Russian President Vladimir Putin’s visits to Ankara. This is straining Turkish-Russian relations.
  • Türkiye remains a key importer of Russian energy, despite improving ties with the West, with a notable increase in fuel imports and its participation in re-exporting Russian oil products to Europe.
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Azerbaijani Politics MENA in Turbulence South Caucasus Region

Can Turkey Undercut Israel’s Alliance with Azerbaijan Over the Gaza War?

Azerbaijan has built strong partnerships with Israel in energy and defense for the last two decades despite also maintaining ties with Turkey and Iran

The impact of the geopolitical turmoil in the Middle East stemming from the ongoing Israel–Hamas war extends far beyond the region.

Since Hamas’s brutal October 7 terror attack on southern Israel, Israeli forces have conducted large-scale military operations in Gaza to try to destroy Hamas and armed radicals affiliated with the militant Palestinian group. Although many countries in Europe and Asia voiced support for Israel at least initially, others have tried to remain neutral, while countries such as Iran, Russia, Turkey, Ireland, and Spain have blamed Israel for the excessive use of force in Gaza and disregard of civilian lives.

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MENA in Turbulence Russia in Caucasus Transit Routes in Eurasia

Türkiye Demonstrates Increased Interest in BRICS Membership

Turkey wants to join BRICS - ảnh 1

Publication: Eurasia Daily Monitor Volume: 21 Issue: 100
Executive Summary:
  •  In June, Turkish Foreign Minister Hakan Fidan met with Russian President Vladimir Putin to discuss, among other issues, Türkiye’s prospective membership in the loose-economic grouping of BRICS, which Putin “fully supports.”
  • The impetus for BRICS expansion has grown significantly amid Russia’s full-scale invasion of Ukraine, with Moscow and Beijing promoting it as a critical counterweight to US and Western influence.
  • Türkiye’s pursuit of BRICS membership looks to promote foreign investment, increased market access, and economic growth and reflects a foreign policy tradition of balancing between regional powers.

On June 11, Turkish Foreign Minister Hakan Fidan attended a session of the BRICS group (a loose political-economic grouping originally consisting of Brazil, Russia, India, China, and South Africa) in Moscow. While there, he met with Russian President Vladimir Putin, Foreign Minister Sergei Lavrov, and Russian Security Council Secretary Sergei Shoigu (Turkish Foreign Ministry, June 11). During the face-to-face meeting with Putin, Fidan discussed bilateral economic and political relations, focusing on the geopolitical turmoil in the Middle East caused by the war in Gaza (Al-Monitor, June 16). Putin vowed to “fully support” Turkish membership in BRICS and build stronger ties to facilitate further economic cooperation.

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Azerbaijani Politics South Caucasus Region

Azerbaijan and Slovakia Expand Strategic Partnership

Publication: Eurasia Daily Monitor Volume: 21 Issue: 81

Executive Summary:

  • Azerbaijan and Slovakia recently signed an agreement on defense cooperation that opens the door to joint defense production, with Slovakia set to produce weaponry funded by Baku.
  • Slovakia’s expansion of its strategic partnership with Azerbaijan takes on a significant geopolitical dimension, potentially reshaping the dynamics of EU-NATO relationships and the balance of power in the region.
  • Russia’s full-scale invasion of Ukraine presented Azerbaijan with an opportunity to expand its energy trade with Europe and to build individual strategic partnerships with EU and non-EU members.

On May 7, Slovakian Prime Minister Robert Fico arrived in Azerbaijan for an official visit to meet with Azerbaijani President Ilham Aliyev. The visit marked a significant milestone in the Azerbaijani-Slovakian partnership, as the two leaders discussed new opportunities, such as transporting Azerbaijani gas to Slovakia, and upgraded bilateral ties to a strategic level (President.az; Azertag, May 7). In recent years, Azerbaijan has focused on building individual strategic partnerships with both EU and non-EU states in Europe, despite the strained relations between Baku and Brussels.

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Azerbaijani Politics Oil / Natural Gas / Green Energy

Azerbaijan’s new strategy is to become a green energy hub

COMMENT: Azerbaijan’s new strategy is to become a green energy hub

Two agreements signed at the end of May advanced Azerbaijan’s efforts to establish itself as a key energy provider in Southeast Europe, going beyond its role as a producer of hydrocarbons to enter the electricity markets in the region as well.

On May 29, Azerbaijan, Georgia, Romania and Hungary signed a memorandum to create a joint venture as part of the implementation of the Black Sea Energy Caspian-Black Sea-Europe Green Energy Corridor project. The first agreement regarding the submarine cable was signed in 2022 and it is supposed to be fully operational in 2029. The Black Sea submarine cable will be 1,195 km long and is set to be an important pillar of the transition to green energy, with the plan to integrate it into the EU’s internal electricity market. As an attempt to diversify energy supplies in response to Russia’s war in Ukraine in February 2022, the Black Sea cable is of particular importance.

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Azerbaijani Politics Turkey-Azerbaijan Partnership

Azerbaijan invites business to help reconstruct Nagorno-Karabakh

Since its victory in the Second Karabakh War with Armenia in 2020, the Azerbaijani government has begun a massive reconstruction of the former war-torn region.

Azerbaijan has demonstrated a firm commitment to reconstructing Nagorno-Karabakh, which was largely neglected and left unattended for three decades. According to the Azerbaijani state media, between 2020 and 2023, the authorities have allocated AZN12 billion to Karabakh’s reconstruction/rebuilding process and an additional AZN4 billion AZN in 2024. Overall, the state program dubbed “Great Return” envisions the allocation of AZN30.5 billion from the state budget between 2022 and 2026.

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Azerbaijani Politics Iran in Caucasus and Beyond South Caucasus Region

How pragmatism drives Azerbaijan-Iran shift on regional transit

Iran’s President Ebrahim Raisi meets with his Azerbaijani counterpart Ilham Aliyev in Tashkent, Uzbekistan on Nov. 9, 2023. (Photo via Iranian presidency)

After rising confrontation and a war of words in recent years, Azerbaijan and Iran have returned to the diplomatic track—emphasizing regional connectivity and infrastructure projects based on pragmatism.

Having pursued coercive diplomacy to contain the rising influence of Israel and Turkey in Azerbaijan since 2020, Tehran has opted for reversive diplomacy towards Baku to de-escalate tensions. The shift is part of a broader Iranian strategy of seeking rapprochement with neighboring states, including Saudi Arabia.

Transit in focus

Regional infrastructure projects lie at the heart of the current pragmatism in the Azerbaijan-Iran relationship, putting political disputes on the back burner.

In Oct. 2023, Baku and Tehran laid the foundation for a new route connecting Azerbaijan to its Nakhchivan exclave through Iranian territory. The ceremony gathered Azerbaijani Deputy Prime Minister Shahin Mustafayev and Iran’s Minister of Roads and Urban Development Mehrdad Bazrpash. Per the initial agreement, a road bridge will be constructed between the two countries, followed by new motorway and railway connections. Although there is currently a functioning road connection between Azerbaijan and Nakhchivan via Iran, the new highway will significantly reduce travel time.

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