The President of the Republic of Azerbaijan, Ilham Aliyev, has signed a Decree on additional measures regarding the stimulation of non-oil-and-gas goods export and the support of transport costs. The Decree defines a completely new state support mechanism aimed at reducing the logistics costs of local exporters and transporting goods produced in the Nakhchivan Autonomous Republic to other territories of the country.

Aykhan Gadashov, Head of the "Azexport" portal of the Center for Analysis of Economic Reforms and Communication (CAERC), stated that the Decree carries particular importance in terms of strengthening the country's economic resilience, as well as minimizing the negative impacts of disruptions in the global supply chain and complex geopolitical processes on the national economy. According to him, the core essence of the reform is to eliminate obstacles arising from the complexity of the logistics chain and high transport costs, sharply increase the competitiveness of local products in international and alternative markets, and diversify export destinations.

A. Gadashov noted that one of the most significant innovations of the Decree is the implementation of the export transport support mechanism. According to the new mechanism, up to 70 percent of the transport costs incurred during the export of local non-oil-and-gas goods (depending on the type of transport and the customs value of the goods) will be covered by the state budget. This step will seriously reduce the transport burden within the cost price for entrepreneurs shipping products to long-distance markets. Concurrently, determining a higher volume of support (70 percent) in case the transportation is executed by motor vehicles registered in the Republic of Azerbaijan will specifically stimulate the development of the country's local logistics and transport companies.

The Head of "Azexport" stated that a special instrument directed toward the full realization of the economic potential of the Nakhchivan Autonomous Republic is also reflected in the Decree. Thus, it has been decided that 70 percent of the expenses incurred for transporting goods produced in the Nakhchivan Autonomous Republic to other territories of the country by land transport will be paid by the state. This measure will facilitate the access of Nakhchivan products to the country's main market and give a massive boost to the rise of industrial-production activity in the region.

Another prominent aspect of the Decree relates to bolstering transparency, digital accounting, and supervision in the execution of state support mechanisms. A. Gadashov emphasized that calculating the transport support solely on the basis of expenses paid in a cashless manner will completely ensure financial transparency while preventing the shadow economy. Paying the funds based on applications and precise verifications by the Ministry of Economy after the completion of the respective quarter, as well as the strict legal regulation of origin rules, will guarantee the fully targeted and intended utilization of state funds.

It should be noted that this Decree, which will enter into force on September 1, 2026, and will be applied for a duration of 10 years (until the end of 2036), is not limited merely to the compensation of transport costs. The document will make a vital contribution to increasing non-oil-and-gas production, protecting the local logistics sector, and forming an extensive economic value chain that ensures the uninterrupted access of national products to foreign markets.