The deepening economic and political ties between Azerbaijan and Turkiye are not only transforming regional dynamics but also positioning the two nations as key drivers of integration within the Turkic world. With cooperation spanning energy, transportation, trade, infrastructure, agriculture, and tourism, their bilateral relationship has evolved into a robust strategic partnership. This partnership is pivotal for shaping the future of both countries, enhancing regional connectivity, and increasing their influence on the global stage.
A recent high-level meeting between Presidents Ilham Aliyev of Azerbaijan and Recep Tayyip Erdoğan of Turkiye, held in June 2024, reaffirmed the mutual commitment to strengthening this relationship. Discussions during the visit underscored their shared objectives of expanding economic cooperation and regional connectivity. Central to these discussions were initiatives such as the Baku-Tbilisi-Kars railway and the Middle Corridor, which are essential to improving trade flows, enhancing logistics, and connecting Azerbaijan, Turkiye, and Central Asia to Europe. The leaders recognized the strategic importance of these projects in facilitating greater trade and reinforcing their roles as pivotal geopolitical actors in Eurasia.
Growing Trade and Investment Dynamics
The bilateral trade relationship between Azerbaijan and Turkiye has shown impressive growth in recent years, demonstrating the effectiveness of their economic strategies. In 2023, trade between the two countries increased by 31%, reaching $7.65 billion—an exceptional achievement that highlights the strength of their economic ties. Turkiye has become Azerbaijan’s second-largest trading partner, following Italy, with a 15% share of total trade. The goal is to reach $15 billion in trade volume in the coming years, a target that both nations are working toward through expanding mutual investments and further diversifying their economic sectors.
Notably, in the first quarter of 2024, trade between the two countries reached $1.47 billion, signaling continued momentum. This figure represents a growing trend in their economic collaboration, with investments extending beyond the traditional energy sector. Both Azerbaijan and Turkiye are intensifying their engagement in non-energy industries, such as agriculture, infrastructure, and technology, to further strengthen their economic interdependence.
Strategic Infrastructure Projects: A Cornerstone of Cooperation
Azerbaijan and Turkiye’s cooperation is also solidified through significant infrastructure projects that have become cornerstones of their partnership. The Baku-Tbilisi-Kars railway, a key regional transport link, plays a pivotal role in connecting Azerbaijan and Turkiye to broader global markets. This railway, alongside the Middle Corridor, is central to the expansion of trade routes that bridge Europe, Central Asia, and the Middle East. These initiatives are critical not only for Azerbaijan and Turkiye but also for the wider region, enhancing logistical capacities and facilitating the free flow of goods and services.
These projects are also part of a broader vision that aligns with Turkiye’s goal of becoming a regional hub for trade and logistics. By improving infrastructure connectivity, Azerbaijan and Turkiye are positioning themselves as gateways to new markets, fostering regional stability and enabling the efficient movement of goods between East and West.
SOCAR's STAR Refinery: Boosting Azerbaijan-Turkiye Energy Ties
The STAR oil refinery, operated by Azerbaijan’s State Oil Company (SOCAR) in Turkiye, has entered a scheduled maintenance phase to conduct its first comprehensive equipment overhaul since its inception. The two-month shutdown, required by legal obligations, aims to improve the refinery's operational efficiency and extend its period of continuous operation from four to five years. As of 2024, the refinery meets approximately 19.5% of Turkiye's petroleum demand. With upgrades that are expected to increase production capacity by 2.5%, this revamp underscores SOCAR’s commitment to sustainable growth and technological advancement. The refinery, which processes up to 13 million tons of oil annually, is a key asset linking to the Petkim petrochemical holding and playing a critical role in Turkiye's energy market. With an investment of nearly $7 billion, the STAR refinery remains central to SOCAR’s strategy to expand its presence in the Mediterranean market and further diversify its product offerings, including diesel, jet fuel, and petrochemical feedstock.
Strengthening Regional Integration and Turkic World Unity
The bilateral economic partnership between Azerbaijan and Turkiye is also a driving force behind the integration of Turkic-speaking countries. President Ilham Aliyev’s leadership and strategic vision for the Turkic world are central to accelerating this process. Under his leadership, Azerbaijan has actively fostered closer ties with other Turkic states, particularly in the economic and political spheres. Aliyev’s vision includes a robust economic collaboration that brings together Turkic nations for mutual prosperity, creating a platform for addressing common challenges, such as energy security, infrastructure development, and geopolitical stability.
Azerbaijan’s commitment to regional cooperation is evident in its diplomatic efforts within the framework of the Turkish Council (Turkic States Organization). Aliyev has consistently highlighted the importance of strengthening the unity of the Turkic world, which has become a cornerstone of Azerbaijan’s foreign policy. His statement, "Our family is the Turkic world," reflects this priority and underscores the commitment to creating a powerful and cohesive bloc of Turkic states.
The Turkish Council, under the leadership of both Azerbaijan and Turkiye, is evolving into an influential global platform. President Aliyev has been vocal about his belief that, in the future, major global issues will be addressed through consultations within this organization, emphasizing its growing significance on the global stage.
Looking Ahead: A Stronger Future Together
The growing economic and political ties between Azerbaijan and Turkiye present vast opportunities for the future. The steady increase in trade, mutual investments, and strategic projects demonstrates the strength of their bilateral partnership. Both countries are not only driving regional integration but are also positioning themselves as key actors in the global economy.
As they continue to expand cooperation in diverse sectors, from trade and infrastructure to technology and agriculture, Azerbaijan and Turkiye are paving the way for a new era of regional collaboration that will have a lasting impact on global trade dynamics. With their combined efforts, they are creating a model for other nations in the region, demonstrating the power of strategic partnerships in shaping a prosperous and stable future for Eurasia.