Azerbaijan – Georgia: A partnership tested by time

Over the past three decades, one of the most effective business platforms in the post-Soviet space has been established in the South Caucasus, combining the energy, transport-logistics, and agro-industrial potential of Azerbaijan and Georgia. The synergistic effect of this cooperation has influenced the development of the entire Caspian region for many years. Today, alongside ensuring Europe’s energy security, Baku and Tbilisi serve as a safe transport bridge between West and East, which is especially important amid current geopolitical fractures. A recent step further strengthening bilateral business ties was the state visit of Azerbaijani President Ilham Aliyev to Georgia.

For many years, Baku and Tbilisi have been closely connected through joint transport and energy projects. A network of oil and gas transit pipelines runs across both countries, and, with Azerbaijan’s participation, terminals for handling oil, fuel, and petrochemical products have been built in Georgian ports. Through these terminals, raw materials from Azerbaijan and Central Asian countries are exported to the markets of the Black Sea and Mediterranean states, effectively contributing to Europe’s energy security.

In recent years, Baku and Tbilisi have also actively implemented projects to export electricity to the Turkish market, with subsequent transmission to several countries in Southern Europe. Joint initiatives in the transport and logistics sector are equally significant: for nearly eight years, the partners have been transporting goods via the Trans-Caspian International Transport Route (TITR), utilising the recently modernised Baku–Tbilisi–Kars (BTK) railway corridor, which links Europe and Türkiye with Central Asia and China. Thanks in particular to additional Azerbaijani investments and the efforts of the Georgian side, the BTK’s capacity has been increased from 1 to 5 million tonnes per year, and the corridor now operates year-round despite challenging mountainous terrain.

Energy and transport projects remain the key pillars of the Azerbaijani–Georgian business agenda, and these issues received particular attention during the one-on-one meeting between President Ilham Aliyev and Georgian President Mikheil Kavelashvili.

During the discussion, it was noted that bilateral ties are successfully developing in the economic and energy sectors, including green energy, transport, investment, and more. The importance of joint transit and transport initiatives implemented by Azerbaijan and Georgia was emphasised, highlighting their strategic and economic significance, as well as the prospects for their expansion.

President Ilham Aliyev also addressed this topic in a joint press statement with Georgian Prime Minister Irakli Kobakhidze: “Work is currently underway to expand them. The Middle Corridor passes through Azerbaijan and Georgia. This is our main transport artery, and additional efforts are being made — and will continue to be made — to expand it.”

A similar view was expressed by the Georgian Prime Minister, who noted that cooperation between the South Caucasus countries opens up new prospects for the entire region. “Global geopolitical shifts have further elevated the importance of the Middle Corridor, as well as the strategic significance of the Black Sea and the South Caucasus as a whole. As a bridge connecting Asia and Europe, our countries play a pivotal role in transit. To this end, we place special emphasis on the development and modernisation of transport and logistics infrastructure,” emphasised I. Kobakhidze.

During the meeting in Tbilisi, a detailed discussion took place not only on bilateral Azerbaijani–Georgian relations but also on issues concerning the future of the South Caucasus region as a whole. This included consideration of the peace process between Azerbaijan and Armenia, which opens new opportunities for projects in transport and energy connectivity.

During the state visit, the President of Azerbaijan highlighted the promising prospects of the rapidly developing Azerbaijani–Georgian business ties in the energy sector. It was noted that Azerbaijani oil and gas are exported to global markets via Georgia, while oil resources from the eastern Caspian coast also transit through Azerbaijan and Georgia. A new priority for both countries is the development of electricity transit projects. This includes the “Caspian Sea – Black Sea – Europe” green energy corridor, which holds strategic importance as a new energy connection between Azerbaijan, Georgia, and Europe. The foundation for this initiative was laid by the strategic partnership agreement signed on December 17, 2022, between Azerbaijan, Georgia, Romania, and Hungary for the joint construction of the 1,195 km, 1 GW Black Sea Energy submarine cable.

“There is a very positive investment climate in Georgia, which is why many investors, including Azerbaijani investors, show great interest in the country […] To date, Azerbaijan has invested $3.7 billion in the Georgian economy,” President Ilham Aliyev noted, emphasising that the visit also included an exchange of views on new investment projects between the two countries.

Azerbaijani–Georgian business cooperation is actively developing on a bilateral level. Currently, more than 650 companies with Azerbaijani capital operate in Georgia. A key role in implementing investment projects in the neighbouring country’s economy is played by the subsidiary of Azerbaijan’s State Oil Company, SOCAR Energy Georgia, which has invested over $2.1 billion in various initiatives. These investments have been directed, in particular, to the oil terminal and other infrastructure at the Port of Kulevi, oil depots and an extensive network of filling stations, as well as gas distribution pipelines, among others.

President Ilham Aliyev noted that last year, bilateral trade turnover exceeded $800 million, and in the first quarter of this year, growth remained strong. At this pace, it is possible that the $1 billion mark could be reached by the end of the year. This is a realistic target, as Azerbaijan has consistently been among Georgia’s top five trading partners. According to data from Azerbaijan’s State Customs Committee (SCC), last year bilateral trade reached over $881.334 million, reflecting a 9.6% growth. This positive trend continued in January–February 2026, with trade between Azerbaijan and Georgia reaching $176.6 million, up 18.9%.

President Aliyev emphasised that the bilateral agenda is extensive and gradually expanding, with new projects and initiatives being implemented through joint efforts: “I can say that our relations can serve as an example for all neighbours, as they are built on mutual respect, mutual trust, common benefit, mutual interests, friendship, and brotherhood.”

Khazar Akhundov

Caliber.Az