18 January 2025,   01:19
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United by shared goals and mutual trust, Azerbaijan and Georgia are poised to shape the future of the South Caucasus - Trend.az

United by shared goals and mutual trust, Azerbaijan and Georgia are poised to shape the future of the South Caucasus - Trend.az publishes an article with such a title.

“The South Caucasus is gaining prominence on the global stage, with Azerbaijan and Georgia standing out as key regional players. Amid shifting geopolitics, Azerbaijan"s efforts to enhance relations with neighbors have highlighted the strategic importance of this region. Building on a long history of friendship, Azerbaijan and Georgia continue to deepen their partnership, founded on mutual respect and shared interests.

High-level visits between the two countries have become a defining feature of their relationship, emphasizing the importance of collaboration in navigating today’s complex global challenges. Both nations recognize that close cooperation is essential for ensuring stability and fostering prosperity in the region.

Economic cooperation: a growing partnership - Economic ties between Azerbaijan and Georgia remain strong. Over the first 11 months of 2024, bilateral trade reached $730.22 million, reflecting the depth of their economic relationship.

Investment flows have also surged. Between January and September 2024, Georgian investments in Azerbaijan grew by 178.78%, reaching $31.047 million, an increase of $19.91 million. Similarly, Azerbaijani investments in Georgia rose by 88.82% to $95.75 million, an additional $45.04 million. These numbers underscore the growing mutual commitment to economic collaboration and development.

Energy: a pillar of cooperation - Energy has long been a cornerstone of Azerbaijan-Georgia relations. Key projects like the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, operational since 2006, and the Baku-Tbilisi-Erzurum (BTE) gas pipeline, launched in 2007, have transformed the regional energy landscape.

The BTC pipeline enables Azerbaijani oil to reach global markets via Turkey, generating transit revenues and infrastructure benefits for Georgia. Similarly, the BTE pipeline bolsters energy security for both Turkey and Georgia while strengthening regional integration. Together, these projects have solidified Azerbaijan’s position as a leading energy supplier and Georgia’s role as a critical transit hub, contributing to the stability of European energy markets.

Transport and logistics: expanding the Middle Corridor - The Baku-Tbilisi-Kars (BTK) railway, completed in 2017, has been a game-changer for regional connectivity. As a vital component of the Trans-Caspian International Transport Route - the Middle Corridor, it reduces transit times between China and Europe, offering a faster, more efficient trade route.

Azerbaijan and Georgia are key players in the Middle Corridor, linking China, Central Asia, the Caucasus, and Europe. The success of this route hinges on the close collaboration between the two countries, as it relies on their transportation networks and strategic locations.

Georgia provides Azerbaijan with access to Black Sea ports, including Poti and Batumi, which are essential for moving goods to Europe. Meanwhile, Azerbaijan serves as a gateway to the Caspian Sea through the Port of Baku, facilitating the transit of cargo from Central Asia and China. This partnership strengthens the transit potential of both nations, establishing them as vital hubs in the global logistics network.

Green energy cooperation - In December 2022, Azerbaijan, Georgia, Romania, and Hungary signed the Strategic Partnership Agreement on Green Energy. The deal focuses on promoting renewable energy, enhancing energy efficiency, and reducing carbon emissions, showcasing the region"s commitment to sustainability.

For Azerbaijan and Georgia, the agreement creates opportunities to diversify energy sources and improve energy security. With their strategic locations, both nations are well-positioned to serve as conduits for green energy exports to Europe, further cementing their significance in global energy markets.

The growing partnership between Azerbaijan and Georgia presents significant opportunities for regional integration and economic resilience. By pursuing new investments and joint initiatives, the two nations can unlock even greater potential for cooperation.

As Azerbaijan continues to play a stabilizing role in the South Caucasus, its collaboration with Georgia lays the groundwork for sustainable development and long-term regional stability. United by shared goals and mutual trust, Azerbaijan and Georgia are poised to shape the future of the South Caucasus”, - writes the author of the article.

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